What Are Property Transfer Duties?

Transfer Duties in South Africa: What They Are and Why You Need a Conveyancer

Buying or selling property is a major financial milestone, and for most South Africans, one of the most significant transactions in their lifetime. Alongside the excitement, it’s essential to understand the legal and financial responsibilities involved … one of the most important being Transfer Duty.

Whether you're a first-time buyer or an experienced investor, understanding what the Transfer Duty is and how it works is crucial to avoid delays, penalties, or unforeseen costs.

What Is Transfer Duty?

A Transfer Duty is a government tax levied on the purchase of immovable property in South Africa. It is payable to the South African Revenue Service (SARS) by the buyer of a property, not the seller.

It’s important to note that the Transfer Duty not the same as transfer fees (which are legal fees paid to your conveyancer for the administrative work of transferring the property). The Transfer Duty is a tax, whereas transfer fees are professional service charges.

Why Do You Have to Pay A Transfer Duty?

The Transfer Duty exists as a form of revenue collection for the government of South Africa by the South African Revenue Service (SARS), much like VAT or income tax. It applies when a property changes legal ownership and is designed to:

IMPORTANT: The Transfer Duty must be paid before the title deed of the new property can be transferred into your name at the Deeds Office.

How Much Is Transfer Duty?

A Transfer Duty is calculated on a sliding scale based on the property’s purchase value. As of 2025, SARS' transfer duty brackets are as follows:

Buying a property? Use our Property Calculator to understand what additional costs you should budget for.

 Why You Need a Conveyancing Attorney

Legally, only an admitted Conveyancer (a specialist property attorney) may manage the transfer of property in South Africa. Our specialised Conyenancing Department handles all of our client’s property administration, helping them streamline the legalities surrounding the purchase or sale of their properties (speak to us if you would like to know more).
 

4 reasons why you need a reliable Conveyancing Attorney:

1. Handling Transfer Duty Submissions to SARS

Your conveyancer prepares and submits all Transfer Duty documentation to SARS, ensures accurate calculation, and obtains the Transfer Duty Receipt, without which your property cannot be transferred.

2. Ensuring Compliance and Avoiding Delays

A minor error in paperwork or tax submissions can delay the process for weeks. A conveyancing attorney ensures that all compliance checks (FICA, municipal clearances, etc.) are managed efficiently and are in order prior to the hand-over of the property to the new owner.

3. Protecting Your Legal Rights

If disputes arise over contracts, suspensive conditions, or deposits, we (as your Conveyancer) act in your legal interest.

4. Managing Bond Cancellations or Registrations

Whether you're taking out a bond or the seller is cancelling theirs, the Conveyancer coordinates with banks, SARS, and the Deeds Office to manage these moving parts.

Additional Considerations in the South African Property Market

• Buying from a Developer? If the seller is VAT-registered and the sale is subject to VAT, no Transfer Duty is payable, however, make sure this is stated clearly in the offer to purchase.
• Delays in Payment = Delays in Transfer
  SARS requires Transfer Duty to be paid within 6 months of the sale. After that, penalties and interest at a rate of 10% per annum apply.
• Cash Sales Still Require Transfer Duty
  Even if no bond is involved, the buyer must still pay Transfer Duty before registration.
• Transfer Duty vs. Rates Clearance
  A Transfer Duty goes to SARS. Rates clearance certificates, which confirm that the seller has paid all municipal charges, are a separate cost handled by the municipality and facilitated by the Conveyancer.

Why Choose EW Serfontein & Associates Inc.?

With decades of combined experience in property law, we have built trust with our clients and the relevant industry stakeholders involved during the sale or purchase of property.

We pride ourselves on:

• Clear, transparent communication
• Smooth turnaround times with Deeds Office registrations
• Dedicated client support from offer to ownership
• Offices in Pretoria and Knysna, offering personal and remote legal service

Whether you're purchasing your first home, investing in a second property, or navigating a sectional title transaction, our team is ready to ensure your transfer is smooth, secure, and compliant.

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Buying or Selling a Property?

We would love to assist you. Our Conveyancing Team will guide you through every step of the transfer process - from drafting your sale agreement to submitting your Transfer Duty declaration.

Contact Details:

WhatsApp: https://wa.me/27791674558

Call: (+27) 12 344 6353 / 4 / 5 or 

Email: reception@serfonteinatt.co.za.

This article is not intended to constitute any form of financial or legal advice.

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