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Lake Properties, Cape Town is a young and dynamic real estate agency located in Wynberg, Cape Town. We offer efficient and reliable service in the buying and selling of residential and commercial properties and vacant land in the Southern Suburbs including Bergvliet,Athlone,Claremont,Constantia,Diepriver,Heathfield,Kenilworth,Kenwyn,Kreupelbosch, Meadowridge,Mowbray,Newlands,Obervatory,Pinelands,Plumstead,Rondebosch, Rosebank, Tokia,Rondebosch East, Penlyn Estate, Lansdowne, Wynberg, Grassy Park, Steenberg, Retreat and surrounding areas . We also manage rental properties and secure suitably qualified tenants for property owners. Another growing extension to our portfolio of services is to find qualified buyers for business owners who want to sell businesses especially cafes, supermarkets and service stations. At Lake Properties we value our relationships with clients and aim to provide excellent service with integrity and professionalism, always acting in the best interest of both buyer and seller. Our rates are competitive without compromising quality and service. For our clients we do valuations at no charge

In a property transfer what does the buyer pay and what does the seller have to pay

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Here's an expanded and detailed explanation of what the buyer and seller are responsible for paying in a South African property transfer:


🔵 BUYER'S COSTS (in detail):

1. Purchase Price

  • This is the amount agreed upon in the Offer to Purchase (OTP).
  • It’s usually paid into the conveyancer’s trust account and only released to the seller upon successful registration of transfer.

2. Transfer Duty (Paid to SARS)

  • A tax payable on property purchases over R1,100,000 (as of 2025).
  • Calculated on a sliding scale.
  • Example: For a R2,000,000 property, the buyer would pay around R37,500 in transfer duty.
  • First-time buyers should always check if they qualify for exemptions or rebates.

3. Transfer (Conveyancing) Attorney Fees

  • These are legal fees for the attorney appointed by the seller to handle the property transfer.
  • The buyer is responsible for paying this fee, which is based on the purchase price.
  • The higher the price, the more the fee.
  • Also includes VAT, and an additional charge for disbursements like postage, FICA verifications, etc.

4. Bond Registration Costs (if financing with a loan)

  • If the buyer takes a home loan, the bank appoints a bond attorney to register the mortgage.
  • The buyer pays this attorney’s bond registration fee, also linked to the bond amount.
  • There is also a once-off bank initiation fee (around R6,000 – R7,000).

5. Deeds Office Fees

  • A government charge for registering the transfer and/or bond with the Deeds Registry Office.
  • The amount depends on the value of the property and is paid by the buyer.

6. Occupational Rent (if applicable)

  • If the buyer moves in before registration is complete, they usually pay occupational rent to the seller.
  • The amount is typically specified in the OTP and is often calculated as 1% of the purchase price per month.

7. Pro-Rata Rates and Utilities

  • The seller pays rates in advance, but the buyer reimburses them for any portion after the transfer date.
  • Applies to municipal rates, water, electricity, etc.

🔴 SELLER'S COSTS (in detail):

1. Estate Agent’s Commission

  • Paid by the seller upon successful registration.
  • Typically ranges from 5% to 7.5% of the selling price (plus VAT).
  • Deducted by the conveyancer directly from the proceeds before paying the seller.

2. Bond Cancellation Costs

  • If the seller has an existing home loan, it must be formally cancelled by the bank.
  • A bond cancellation attorney (appointed by the bank) handles this, and the seller pays a cancellation fee (± R3,000–R5,000).
  • The bank also requires 90 days’ notice, or they’ll charge penalty interest.

3. Rates Clearance Certificate

  • Required by the municipality to confirm that all rates, refuse, sewerage, water and related charges are fully paid.
  • The seller typically pays 2–3 months in advance.
  • Any unused portion is refunded to the seller after registration.

4. Compliance Certificates

These are mandatory in most transfers. The seller must pay for and provide:

  • Electrical Certificate of Compliance (COC) – valid for 2 years.
  • Beetle Certificate – required in coastal areas.
  • Gas Compliance Certificate – if gas appliances are installed.
  • Electric Fence Certificate – if applicable.
  • Plumbing Certificate – required in Cape Town.

If the property fails inspection, the seller must fix the issues before certificates are issued.

5. Capital Gains Tax (CGT)

  • Applies if the property is not the seller’s primary residence, or the gain exceeds R2 million.
  • Tax is payable on the profit (capital gain) and is declared in the seller’s tax return.
  • SARS calculates CGT based on market value, purchase price, and qualifying expenses.

✅ WHO PAYS WHAT – QUICK RECAP

Item Buyer Pays Seller Pays
Purchase Price
Transfer Duty (SARS)
Transfer Attorney’s Fees
Bond Registration (if loan is taken)
Bank Initiation Fees
Deeds Office Fees
Occupational Rent (if early occupation)
Municipal Rates Advance Refund ✅ (reimburse) ✅ (pay upfront)
Estate Agent Commission
Bond Cancellation Fees & Penalty Int.
Compliance Certificates & Repairs
Capital Gains Tax

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