The complete cost of buying a home in Cape Town
Transfer duty, attorney fees, bond costs and the rest, before you make an offer.
The purchase price is the biggest cost. It isn’t the only one, and the others tend to show up after you’ve fallen for the house. Budget for them before you make an offer.
Transfer duty
Transfer duty is a tax the buyer pays to SARS when property changes hands. Up to R1,210,000 the rate is 0%. Above that it’s charged on a sliding scale, on the part of the price above each threshold.
| Property value | Transfer duty |
|---|---|
| R1 – R1,210,000 | 0% |
| R1,210,001 – R1,663,800 | 3% of the value above R1,210,000 |
| R1,663,801 – R2,329,300 | R13,614 + 6% of the value above R1,663,800 |
| R2,329,301 – R2,994,800 | R53,544 + 8% of the value above R2,329,300 |
| R2,994,801 – R13,310,000 | R106,784 + 11% of the value above R2,994,800 |
| R13,310,001 and above | R1,241,456 + 13% of the value above R13,310,000 |
SARS lists these rates as effective from 1 April 2025, with no changes from 1 April 2026.
Worked examples from that table
| Purchase price | Transfer duty |
|---|---|
| R1,210,000 | R0 |
| R1,300,000 | R2,700 |
| R1,500,000 | R8,700 |
| R1,800,000 | R21,786 |
| R2,000,000 | R33,786 |
| R2,500,000 | R67,200 |
| R3,000,000 | R107,356 |
If you’re near R1,210,000, the gap between just under that line and just over it is real money. Know your ceiling before you start viewing.
Other costs of buying
These sit on top of transfer duty. Published guides disagree with each other, so treat the figures below as a starting range and get a written quote from your attorney and bank. The example is a R2,000,000 purchase with a bond.
| Cost | Rough range at R2,000,000 | Set by |
|---|---|---|
| Transfer duty | R33,786 (SARS table above) | SARS |
| Transfer attorney (conveyancing) fee | About R30,000 to R45,000 plus VAT. One guide quotes R42,406 including VAT, from the LSSA guideline. | The attorney, guided by the LSSA tariff |
| Bond registration attorney fee | Published figures run from about R22,000 to R42,400 including VAT for a R2,000,000 bond. Only applies if you take a bond. | The attorney |
| Bond initiation fee | About R6,000 to R6,500. Some banks waive it. | The bank |
| Deeds Office fees | Gazetted tariff. One guide quotes R1,738 for the transfer and R1,738 for the bond at this price. Another says R500 to R1,500. | Government |
| Postages, petties and FICA | A few thousand rand | The attorney |
| Deposit | Depends on your lender and your credit profile | The lender |
| Moving costs and inspections | Get quotes. They vary a lot. | Service providers |
The seller appoints the transfer attorney, but the buyer usually pays the transfer costs. Attorney fees go up with the price, and the figures above are for R2,000,000 only. Ask the attorney for a quote at your price. You can also download the MM Connect app (Miltons Matsemela Inc., an independent third party) for an estimate.
Get pre-qualified before you view anything
Pre-qualification and pre-approval are often used interchangeably, but they are different stages. Pre-qualification is a basic estimate of what you may be able to borrow, based on the information you give. Pre-approval is a more in-depth check using verified documents, including a credit assessment and income verification. Neither is a guarantee of a bond: after you make an offer, the bank assesses the property and your formal application, and may approve it in principle, with conditions, before final approval. There’s no point viewing homes at R1.1 million if you only qualify for R750,000. Find your real ceiling first. A bond originator does not charge you; the banks pay their commission. Why get pre-qualified first.
There’s no point viewing homes at R1.1 million if you only qualify for R750,000. Find your real ceiling first. A bond originator can do it at no cost to you.
How representation and commission work
If you buy a home through a standard listing, the seller pays the estate agent’s commission. However, if you appoint me under a dedicated buyer’s search mandate to source, evaluate, and negotiate a property on your behalf, a direct service fee applies.
Read next: How long does buying and selling take?
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Sources
- SARS: Transfer duty rates
- ooba: Transfer duty in South Africa
- ooba: The property transfer process in South Africa
- MJ Kotze Inc: Property transfer costs explained (April 2026)
- Onah Attorneys: Property transfer costs, who pays what (July 2026)
- Everything Property: Transfer costs, the full breakdown (June 2026)
General information only. It is not legal, tax or financial advice. Confirm figures with your conveyancing attorney, bank or accountant before you decide. See the Disclaimer.
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