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If a buyer can’t cover transfer costs, the transfer simply can’t be lodged until resolved. It doesn’t automatically cancel the sale. If a seller can’t cover compliance or cancellation costs, those are usually settled from the sale proceeds at registration, not paid upfront.
What if the buyer can’t pay transfer duty or conveyancing fees?
The Deeds Office won’t accept lodgment until SARS transfer duty is paid and the conveyancer’s fees are settled. This stalls the transfer, but doesn’t automatically void the sale agreement the buyer typically has a defined period (per the OTP’s terms) to resolve it before the seller has legal grounds to cancel.
What if the seller can’t afford compliance certificates upfront?
This is common and usually not a crisis. Most conveyancers arrange for these costs to be settled from the sale proceeds at registration, rather than requiring the seller to pay out of pocket beforehand. The certificates themselves still need to be obtained before transfer, but payment timing is flexible.
What if the seller’s existing bond is larger than the sale price?
This is the more serious version of this problem, a shortfall the seller has to cover personally before the existing bond can be cancelled and transfer can proceed. This needs to be identified and planned for as early as possible, ideally before listing, not discovered mid-transaction.
The short answer
A payment shortfall on either side delays a transfer. It rarely kills the deal outright, provided it’s identified and addressed within the timelines the OTP allows. The real risk is a shortfall discovered late, with no time left to resolve it before a deadline passes.
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Gordon De Beer is a property lawyer and strategist provisiding services to the Upper Highway and North Coast KZN from offices in Gillitts and Salt Rock.
