Buying a house is exciting, but it comes with some extra costs. Two common costs you will hear about are Transfer Duty and Transfer Fees. Let’s break them down in simple words.

What is Transfer Duty?

Transfer Duty is a tax you pay to the government when you buy a property. Think of it like a ticket that lets you officially own your new home.

• The more expensive the house, the higher the transfer duty.
• It is only paid once, when the property is transferred to your name.
• The government uses this money to provide public services.

Example:
If you buy a house for R1,000,000, you have to pay transfer duty based on the government’s rate for that price.

What are Transfer Fees?

Transfer Fees are fees you pay to the conveyancer – the professional who helps make the property officially yours.

• The conveyancer handles all the paperwork, checks the legal documents, and ensures the property is legally transferred.
• These fees are for their work, not a government tax.
• The amount depends on the value of the property.

Example:
Hiring someone to help you move into your new home is like paying transfer fees, you are paying for their service.

Why It Matters

Knowing the difference helps you budget correctly when buying a property. You’ll know how much goes to the government and how much goes to the conveyancer.

Buying a home comes with these costs, but once they are paid, you can enjoy your new property knowing everything is legally yours.