Bond and Transfer Costs: What You'll Actually Pay and When

You've found the perfect property for you. A two-bedrooms house with a garden. In a suburb you can actually afford. You picture yourself living there braai on the patio, kids playing in the yard, weekends spent making it your own.

You signed the Offer to Purchase. You hold your breath, waiting on the bank's decision.

And then it came: "Your bond has been approved."

You celebrate, tell your loved ones of the good news. You start planning for the moving.

And then the invoices started arriving.

Suddenly, you're staring at numbers you never budgeted for. Transfer fees. Bond registration costs. Conveyancing fees. A bill from the bank registration attorney. A separate bill from the transfer attorney. And you have no idea when you need to pay them, how much they'll actually be, or what happens if you're late.

This is the part of buying a house that nobody talks about. And it's the part that catches most first-time buyers completely off guard.

Let me walk you through exactly what these costs are, how much you'll actually pay, and most importantly when you need to pay them.

The Two Big Categories: Transfer Duty vs Transfer and Bond Costs

First things first: these are not the same thing.

Many buyers confuse these. Transfer duty is a tax. Transfer and bond costs are legal fees. They're paid to different people, at different times, and they're calculated differently.

Here's how they break down:

1. Transfer Duty (SARS Tax)

Transfer duty is a tax you pay to SARS when you buy a property. The amount depends on the purchase price.

Key point: If you're buying a property for R1.1 million or less, you pay zero transfer duty.

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2. Transfer Costs (Transfer Attorney Fees)

Transfer costs are the legal fees for transferring the property from the seller's name into yours. The transfer attorney handles all the paperwork, liaises with the Deeds Office, and ensures the transfer is properly registered.

What these fees cover:

• Drawing up and lodging the transfer documents
• Liaising with the seller's attorney
• Calculating and paying transfer duty (if applicable)
• Registering the property at the Deeds Office
• Obtaining the new title deed

Typical range: R22,000 – R40,000 on a R1.2 million property

Important: Transfer duty is a tax paid to SARS. Transfer costs are legal fees paid to the attorney. Don't mix them up.

3. Bond Registration Costs (Bank Registration Attorney Fees)

Bond costs are the legal fees for registering your bond with the bank. This is handled by a separate attorney the bank registration attorney who works on behalf of the bank to ensure the bond is properly registered as a mortgage over your property.

What these fees cover:

• Preparing and lodging the bond documents
• Liaising with the bank
• Registering the bond at the Deeds Office
• Ensuring the bank's security is properly recorded

Typical range: R20,000 – R35,000 on a R1 million bond

Plus: The bank usually charges a bond initiation fee of approximately R6,900.

The Confusion: Two Attorneys, Two Invoices

This is where most buyers get confused.

There are two separate attorneys involved in a property purchase:

They send separate invoices. One from the transfer attorney. One from the bank registration attorney.

Many buyers don't realise this and are shocked when a second invoice arrives. Budget for both.

When Do You Actually Pay?

This is the most common question buyers ask. And the answer is: it varies, but there's a general pattern.

The Typical Timeline

Payment Timing: What You Need to Know

Invoices are usually sent once the transfer documents are ready to sign.

You'll typically receive a pro forma invoice (an estimate) or a final invoice from the transfer attorney. The payment terms are usually "on demand" or "upon receipt."

The general rule: The transfer attorney will not lodge the transfer at the Deeds Office until payment is received. So if you want the transfer to proceed, you need to pay when the invoice arrives.

But there's flexibility: If you need a few extra days, just call the transfer attorney and explain. Most will accommodate short, reasonable delays.

The bottom line on timing: You'll likely pay the transfer attorney within a few days of receiving the invoice. The bank registration attorney invoice usually follows a similar timeline. Expect to pay both before the transfer is lodged at the Deeds Office.

Practical Example: What a R1.2 Million Purchase Actually Costs

Let's run through a real example so you can see how this adds up.

That's about 5.3% on top of the purchase price. On a R1.2 million property, you're looking at roughly R63,400 in additional costs.

But here's the catch: These costs vary significantly. Some attorneys are cheaper. Some properties are more complicated. The key is to ask for a quote upfront before you commit.

Special Cases: New Developments, Repossessed Properties, and More

New Developments / VAT Properties

If you're buying a new development from a developer, transfer duty does not apply. Instead, VAT is included in the purchase price.

What you still pay:

• Transfer attorney fees
• Bank registration attorney fees
• Bond initiation fees

Bank Repossessed Properties

If you're buying a bank repossessed property (a "distressed sale"), the costs are similar but there may be additional considerations.

Typical costs:

• Transfer duty (still applicable)
• Transfer attorney fees
• Bond registration fees

Additional considerations:

• The property may have outstanding rates and taxes that need to be settled
• The bank may have specific requirements for the transfer process

Sectional Title Properties

If you're buying a sectional title property, you'll have the same transfer and bond costs, plus:

• Body corporate levies (ongoing)
• Special levies (occasional)
• HOA rules (review before signing)

Existing Properties

For existing properties, the standard transfer and bond costs apply. Transfer duty is calculated based on the purchase price, using the SARS rates above.

How to Protect Yourself: Practical Steps

1. Budget for Costs Before You Start Viewing

Use our Bond And Transfer Cost Calculator add 10–15% to your budget for hidden costs. The actual figure will depend on your property price, but budgeting an extra 8–12% is a safe starting point.

2. Ask the Transfer Attorney for a Quote Early

Don't wait for the invoice to arrive. Ask for an estimate as soon as you've signed the OTP.

3. Understand the Two Invoices

There are two separate attorneys. Two separate invoices. Budget for both.

4. Check Your Sale Agreement (OTP)

Your Offer to Purchase should include clauses about transfer and bond costs. Read these carefully.

To understand the legal document that starts the whole process, read our Offer to Purchase guide.

5. Verify Bank Details to Avoid Scams

This is critical. Scammers have been known to intercept emails and change the bank details on invoices.

Action: Always phone the attorney's office to confirm bank details before making a payment.

6. Budget for the Bond Initiation Fee

Banks charge a once-off initiation fee (around R6,900) when your bond is registered. This is separate from the bond registration attorney fees and is usually included in the overall cost.

7. Factor in Ongoing Costs

Transfer and bond costs are once-off. But don't forget the ongoing costs:

• Monthly bond repayment
• Property rates and taxes (municipal)
• Levies (sectional title)
• Home insurance (mandatory for bondholders)
• Maintenance and repairs

Frequently Asked Questions

When do I pay the transfer attorney?
Usually within a few days of receiving the invoice, which is sent once the transfer documents are ready to sign. Payment is generally required before the attorney lodges the transfer at the Deeds Office.

When do I pay the bank registration attorney?
Similar timeline you'll receive an invoice once the bond documents are ready. Payment is generally required before registration.

How long do I have to pay?
Typically "on demand" or "upon receipt." However, most attorneys will allow a short, reasonable delay if you communicate with them.

Can I negotiate these costs?
Sometimes. Transfer duty is fixed by SARS. Attorney fees are regulated by the Legal Practice Council, but you can ask for a discount some attorneys will offer one.

What if I can't pay on time?
Contact the attorney immediately. They may be able to extend the payment deadline, especially if you've communicated early.

Do I pay transfer duty on a new development?
No. VAT is included in the purchase price instead of transfer duty. You still pay transfer attorney fees and bond registration costs.

Do I pay transfer duty on a repossessed property?
Yes. The standard transfer duty rates apply based on the purchase price.

Can I roll these costs into my bond?
Generally, no. Bond and transfer costs must be paid upfront before registration. However, some banks offer a "105% bond" in rare cases, but this is unusual and not guaranteed.