1. Transfer Duty
Definition: A tax levied by the government when a property is transferred from one person to another.
Exemptions:
No transfer duty is payable on properties valued at R1 million or less.
Rates for Properties Above R1 Million (as of 2024):
R1,000,001 - R1,375,000: 3% on the value above R1,000,000
R1,375,001 - R1,925,000: R11,250 + 6% on the value above R1,375,000
R1,925,001 - R2,475,000: R44,250 + 8% on the value above R1,925,000
R2,475,001 - R11,000,000: R88,250 + 11% on the value above R2,475,000
Above R11,000,000: R1,026,000 + 13% on the value above R11,000,000
2. VAT (Value-Added Tax)
When Applicable: If you are buying from a property developer and the developer is registered for VAT, VAT (15%) may be included in the purchase price.
Exemption: If VAT applies, transfer duty is not charged.
3. Bond Registration Costs (if financing the purchase)
Payable to register a bond (mortgage) over the property.
Includes fees charged by the bond attorney (based on the bond amount) and the Deeds Office fee.
4. Deeds Office Registration Fee
Paid to register the property in your name at the Deeds Office.
Fee depends on the value of the property and is determined by the Deeds Office tariff.
5. Conveyancing Fees
Paid to the conveyancing attorney responsible for transferring the property into your name.
Fee varies based on the property price and is set according to recommended guidelines by the Legal Practice Council.
6. Rates Clearance Certificate Fee
Local municipalities require a clearance certificate to confirm all municipal rates and taxes are paid up to date.
7. Additional Costs to Consider
Homeowners’ Insurance: Required by lenders for bonded properties.
Levy Clearance Certificate: For properties in sectional title schemes or estates.
Occupational Rent: If you take possession of the property before the transfer is finalized.
It's advisable to consult with a conveyancing attorney to get an accurate estimate of all costs and taxes for your specific purchase.
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