When buying a property you should be fully aware of the additional costs.

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1. Transfer Duty

– A tax payable to SARS based on a sliding scale.

– For properties valued at R1 million, **transfer duty is approximately R0** (properties at R1 million or below are exempt).

Scale overview

  – Up to R1 million: Exempt

  – R1 million – R1.375 million: 3% on the amount exceeding R1 million

  – R1.375 million – R1.925 million: R11,250 + 8% on the amount exceeding R1.375 million

  – Higher brackets apply for more expensive properties.

2. Registration Fees

– Cost of registering the property in the buyer’s name at the Deeds Office.

Estimated cost:** R15,000 to R25,000

3. Legal and Conveyancing Fees

– Fees paid to lawyers or conveyancers to handle the transfer process.

Estimated cost:** R15,000 to R30,000 (including disbursements)

4. Deeds Office Fees

– Charges for processing the registration.

Estimated cost:** R3,000 to R5,000

5. Other Costs (if applicable)

Bond Registration Fees:R25,000 to R30,000 (if financing the purchase)

Additional costs like valuation fees or bank charges may also apply.

Total Additional Costs:

Approximately R90,000 to R120,000 on top of the R1 million purchase price.

Including these costs in your budget will help ensure a smooth property transaction.