Tips on saving for property transfer costs is essential to avoid surprises when closing on your dream home purchase.

When planning to buy a home, most buyers focus on the deposit and bond approval but many overlook a significant expense: property transfer costs. These are the legal and administrative fees payable when transferring property ownership from seller to buyer, and they can significantly affect your total budget if not planned for in advance.

In South Africa, property transfer costs typically include transfer duties (a government tax), attorney fees, and additional disbursements such as deed office fees and FICA checks. The exact amount depends on the value of the property and is calculated on a sliding scale. While some buyers mistakenly assume that these costs are included in the purchase price, the reality is that they are an additional out-of-pocket expense and must be paid upfront before registration can occur.

Fortunately, there are practical ways to prepare for this. By building these costs into your savings plan from the outset, you avoid last-minute pressure or loan top-ups. Start by requesting a breakdown of transfer costs for your target price range. Then, set aside a separate savings account and automate monthly contributions. If you are planning to purchase in the next 6 to 12 months, this strategy can ease the financial strain significantly.

Smart Saving Tips

• Use online transfer cost calculators to estimate fees accurately
• Automate monthly savings to a dedicated account
• Minimise unnecessary spending leading up to your purchase
• Request a full quote from the transferring attorney in advance
• Consider lower-cost areas or properties under the threshold for transfer duties

Frequently Asked Questions

Are transfer costs included in the bond?
Not usually. Transfer costs must be paid separately and are not financed through the bond unless your bank offers a specific product that includes it.

How much should I budget for property transfer costs?
This depends on the purchase price. For example, a home worth R1.2 million might require around R45,000 in total transfer costs.

Can first-time buyers get discounts on transfer costs?
First-time buyers purchasing below a certain threshold may be exempt from transfer duties, but attorney fees will still apply.