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As a general rule, the buyer pays the costs of transfer. This includes transfer duty, conveyancing fees, bond registration. The seller pays for compliance certificates, estate agent commission, and bond cancellation costs. Here’s the full breakdown of who actually pays for what.
What does the buyer pay for?
- Transfer duty.
This is a tax paid to SARS, calculated on the purchase price (properties below the SARS threshold may be exempt). - Conveyancing fees.
These fees are the transferring attorney’s professional fees for preparing and registering the transfer. - Bond registration costs.
If the purchase is financed, a separate attorney registers the bond, with its own fee scale. - Deeds Office fees.
The fixed government tariff charged for registering the transfer.
What does the seller pay for?
- Compliance certificates.
Fees for electrical, plumbing, gas, and (where relevant) beetle or electric fence certificates. Still standard practice in KZN even where not strictly required by law. - Estate agent commission.
Only applicable where an agent was involved in the sale. - Bond cancellation costs.
If the seller has an existing bond that needs to be cancelled on transfer, they will also have to pay bond cancellation costs.
Is this split fixed by law?
No. There’s no legislation mandating this exact split. It’s a long-established convention in South African conveyancing practice, not a legal requirement. This means it can be varied by agreement between the parties if specifically recorded in the Offer to Purchase. In practice, the standard split above is what the overwhelming majority of KZN transactions follow.
The short answer
The buyer generally carries the bulk of the transfer costs (duty, conveyancing, bond registration). The seller carries compliance and agent costs. It’s convention, not law, but convention is what nearly every transfer actually follows.
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Gordon De Beer is a property lawyer and strategist providing his services in the Upper Highway and North Coast KZN from offices in Gillitts and Salt Rock.
