Complete Guide to Buying Costs in South Africa 2026
Buying property involves significantly more than just the purchase price. On a R1.5M home, expect to pay an additional R50,000 – R90,000 in transaction costs before you receive your keys. This guide breaks down every cost, who pays it, and typical amounts.
Complete Buying Costs Checklist
The table below covers every significant cost. Items marked Required are payable in virtually all transactions. Items marked Situational depend on property type, location, or OTP conditions.
| Cost Item | Paid By | Typical Amount | |
|---|---|---|---|
| Transfer Duty Zero on properties under R1,210,000. Scales to 13% for luxury properties. | Buyer → SARS | R0 – R1.24M+ | Required |
| Transfer Attorney Fees LPC guideline tariff (excl. VAT). Incl. Deeds Office transfer fee. | Buyer → Conveyancer | R15,000 – R45,000 | Required |
| Bond Registration Attorney Fees Separate attorney appointed by the bank. LPC tariff applies. | Buyer → Conveyancer | R12,000 – R40,000 | Required |
| Deeds Office Transfer Fee Fixed fee per government schedule. Usually bundled into attorney account. | Buyer → Deeds Office | R50 – R7,751 | Required |
| Deeds Office Bond Registration Fee Separate from transfer. Fixed government schedule. | Buyer → Deeds Office | R561 – R9,690 | Required |
| Bank Initiation Fee One-off fee when bond is granted. Can be added to loan amount. | Buyer → Bank | R6,900 (NCA max ~R10,000) | Required |
| Monthly Service Fee NCA maximum is R69/month. Some banks charge less. | Buyer → Bank (ongoing) | R57 – R69/month | Required |
| VAT on Attorney Fees Both transfer and bond attorneys charge 15% VAT on their professional fees. | Buyer → SARS | 15% on attorney fees | Required |
| Rates Clearance Certificate Municipality charges 3–6 months of rates in advance. Normally seller pays. | Seller, but sometimes buyer | R1,000 – R5,000 | Required |
| Electrical COC Certificate of Compliance for electrical installation. Required by law. | Seller (but buyer often covers) | R935 – R2,750 | Required |
| Beetle / Entomologist Certificate Required in coastal areas and most OTP clauses for free-standing homes. | Seller | R400 – R800 | Situational |
| Gas COC Required if property has LPG/natural gas installations. | Seller | R500 – R1,200 | Situational |
| Electric Fence COC Required if property has an electric fence. | Seller | R1,200 – R2,500 | Situational |
| Plumbing COC Not universally required but becoming standard in most OTPs. | Seller | R800 – R1,500 | Situational |
| Home Inspection Not legally required but strongly recommended for older properties. | Buyer | R1,500 – R4,500 | Situational |
| Moving Costs Varies enormously by distance and volume. Get 3 quotes. | Buyer | R3,000 – R20,000 | Situational |
Worked Example: R1,500,000 Property
For a buyer taking a 90% bond (R1,350,000 loan) on a R1,500,000 property:
Note: Attorney fees vary. The above are calculated on the LPC guideline tariff and include VAT at 15%. Compliance certificates and moving costs not included.
Transfer Costs vs Bond Costs
Buyers often confuse transfer costs and bond costs — they are separate processes with separate attorneys:
Transfer Costs
Paid to the transfer attorney (appointed by the seller). Covers transfer of ownership from seller to buyer. Includes transfer duty, conveyancing fees, Deeds Office fee, and VAT.
Bond Costs
Paid to the bond registration attorney (appointed by the bank). Covers registration of the mortgage bond against the property. Includes attorney fees, Deeds Office fee, and VAT.
Both sets of costs are typically paid to the respective attorney on request, usually 2–4 weeks before registration. Ask your attorney for a detailed cost estimate upfront.
Tips to Reduce Buying Costs
- Buy under R1,210,000 if possible — the zero-rate transfer duty threshold saves R8,700–R13,614 compared to properties just above the threshold.
- Negotiate attorney fees — LPC tariffs are a guideline, not a legal maximum. Some attorneys will discount fees, especially on higher-value properties.
- Add initiation fee to bond — the R6,900 initiation fee can be capitalised into your loan, reducing upfront cash needed (but you pay interest on it for the bond term).
- Check for FLISP eligibility — qualifying first-time buyers earning R3,501–R22,000/month can receive a government subsidy of R27,960–R169,264 toward their purchase.
- Get compliance certificates done early — negotiating who covers these costs before signing the OTP can save you money.