The following are a list of costs that you will incur when buying a property:

  • The deposit; Depending on your financial position and the amount you wish to borrow, the Bank may require you to pay a deposit. For example, you qualify for a loan to the value of 80 % of the property value and need to pay 20% deposit.

  • Occupational rent; When you occupy your new property before registration has taken place. The Seller could insist on the payment of occupational rent – this agreement need to be stipulated in the Offer to Purchase.

  • Transfer costs (duty); It is tax paid to the Receiver of Revenue when buying property and transferring it to your name. When buying vacant land you will pay transfer duty only on the vacant land. If you buy an existing home you will pay transfer duty on the value of the land and building. It is charged on a sliding scale:

  • Conveyance fees (Attorney fees) are recommended tariffs by Law Society; As a rule of thumb, you should allow for between 5% (if less that R500 000) and 8% of the amount of the purchase price of the property for all the other costs involved in purchasing a home. This amount excludes the deposit. These costs are commonly referred to as Transfer Costs or Registration & Transfer Costs and are paid by the purchaser.