If you are an Individual who plans everything to cent in your rand it is important to understand the costs involved when purchasing your property.
Total Transfer costs can be divided into:
- Transfer Duty
- Conveyancer fees
- Post & Petty
- VAT
- Deeds Office Fee
- Lodging Agent Fee
- GHOST Fee (Fee for Software and administration system)
- FICA Fee
- Deeds Office Search
In addition to this you will pay Bond Fees.
Bond Fees and Conveyancer fees are determined by the Law Society. This is the amount that is paid to the conveyancer dealing with the registration of your property and the registration of the Bond over your Property. In some instances, you will have two firms dealing with your transaction namely, Bond Attorneys and the Transferring Attorneys. These fees are determined according to the value of the Property that you are buying. For instance, in May 2020 conveyancer’s fees was R21 200.00 for a Property that had a Purchase Price of R1 200 000.00 In addition to this, you would pay Transfer Duty and the rest of the costs mentioned above. Total Transfer costs at that time would amount to R34 808.00.
Transfer Duty is Tax Payable to the South African Revenue Service on all transfers of immovable property and is calculated on a percentage of the Purchase Price. The percentage is determined by SARS on a sliding scale in terms of the value of the Property that you are buying. Properties under R1 000 000.00 are exempt from Transfer Duty. The conveyancer pays the Transfer Duty directly to the receiver of revenue and obtains a Transfer Duty receipt. A property cannot be registered in your name without this receipt.
The crux is therefore, Conveyancer Fees and Transfer Duty form part of the fees that you pay overall when transferring your Property. Conveyancing fees is a fee for the work and skill applied to your transaction by the Conveyancer and his or her team. Transfer Duty is a Tax payable to SARS and the Conveyancer just pays it over on your behalf in order to obtain a Transfer Duty Receipt. These are fees over and above your purchase price.
Therefore it is prudent to have up to 10% of your Purchase Price or more saved or available in credit.
The firm has over 10 years of professional experience and has a good reputation in the property industry as the firm is trusted by banks, real estate agents and developers, individual property sellers and purchasers.
