Deposit and Purchase Costs: What You Actually Need in Cash

Transfer duty

Transfer duty is a tax paid to SARS on the transfer of property, calculated on a sliding scale. Purchases below the first threshold, currently R1 210 000, attract no duty. Above that, the rate steps up through several brackets. The thresholds are revised in the national budget, so always confirm the current figures with your conveyancer.

Attorney costs

There are usually two sets of attorneys. The transferring attorney, appointed by the seller, registers the transfer of ownership. The bond attorney, appointed by the lender, registers the bond. The buyer pays both, on tariffs that scale with the value of the transaction.

Typical acquisition costs on a bonded residential purchase
Cost	Paid to	Typical scale
Transfer duty	SARS	0% below the threshold, rising in brackets above it
Transfer attorney fee	Conveyancer	Scales with purchase price
Bond registration fee	Bond attorney	Scales with bond amount
Bond initiation fee	Lender	Fixed, set by the bank
Deeds office fee	Deeds Registry	Fixed, by value band
Rates and levy clearance	Municipality, body corporate	Advance charges, often refundable in part
Compliance certificates	Registered contractors	Electrical, gas, plumbing, beetle where applicable

The costs after transfer

Budget beyond registration. Moving, immediate repairs, insurance premiums and the first month of rates and levies all arrive quickly. On an investment property, add the cost of preparing the unit for a tenant and the possibility of a vacant month before the first rent is collected.

Professional tips

• Ask the conveyancer for a written pro forma statement as soon as the offer is accepted.
• Keep a reserve for compliance certificates. Electrical and plumbing repairs surface late.
• On an investment purchase, budget one vacant month before the first rent arrives.

Common mistakes to avoid

• Budgeting for the deposit only and being short at transfer.
• Assuming transfer duty applies to a new development priced with VAT.
• Ignoring rates and levy clearance advances, which are payable up front.

Frequently asked questions

How much cash do I need on top of the deposit?+

On a bonded residential purchase, budget roughly 6% to 10% of the purchase price for transfer duty, attorney fees, bond registration, initiation and clearance costs.

Can purchase costs be added to the bond?+

Some lenders will finance a portion of the costs on a higher loan-to-value application, but this is not standard. Plan to pay them in cash.

When is transfer duty not payable?+

Below the current SARS threshold, and on VAT-inclusive purchases from a registered developer where VAT is charged instead.

Key takeaways

Acquisition costs commonly add 6% to 10% of the price and are not financed.
Transfer duty is not payable below the current SARS threshold.
VAT-inclusive developer sales attract no transfer duty.
The buyer pays both the transfer attorney and the bond attorney.
Hold a reserve for repairs, insurance and the first vacant month.

Model it for your property

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References

About the author

BookingLoop Advisory

Property finance desk

BookingLoop's advisory team works with residential owners and investors on affordability, acquisition costs, financing structure and letting performance across South African metros.

Bond structuringAcquisition costsCash-flow modellingResidential investment

Published 16 January 2026 · Last updated 3 February 2026

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