Quick answer: In most South African property sales, the buyer pays the transfer costs (including conveyancing fees, Deeds Office fees, and transfer duty if applicable). The seller typically pays estate agent commission and costs linked to compliance and getting the property ready to transfer (depending on the sale agreement).
Let’s make this simple: property transfers have “moving parts”, and money attaches to each part.
The standard rule (most common scenario)
- Buyer pays: transfer costs (conveyancing fees, Deeds Office fees, transfer duty where applicable)
- Seller pays: agent commission (usually), and often compliance costs depending on the agreement
The sale agreement can change this. So always confirm what your OTP says.
What exactly are “transfer costs”?
Transfer costs are the total costs needed to legally transfer ownership. Full breakdown here:
Transfer costs and conveyancing fees guide
Who pays transfer duty?
In a typical sale, the buyer pays transfer duty if the transaction is not subject to VAT and the price falls into a duty bracket.
Start here: Transfer duty calculator and SARS table
Who pays bond registration and bond cancellation costs?
- Buyer: usually pays bond registration costs (if buying with finance)
- Seller: often pays bond cancellation costs for the seller’s existing bond
More here: Bond registration and cancellation guide
The mistake that causes disputes
The most common dispute is not “who pays”. It’s that people assume.
If you want certainty, send us your OTP and we’ll confirm the allocation of costs based on the actual contract wording.
Need clarity on your transaction?
Contact SD Law and attach the OTP/deed of sale.
FAQ
Yes, parties can agree to different allocations in the contract. It must be clear in writing.
No. It only speaks to transfer duty. Other costs still exist and the contract still governs who pays what.
Disclaimer: This article is general information and not legal advice.
Simon Dippenaar
Founder & Managing Partner, SD Law
Attorney Simon Dippenaar has a BBusSc LLB degree and Professional Diploma in Legal Practice from the University of Cape Town, and is an admitted attorney of the High Court of South Africa. He is the founder and director of private legal practice, Simon Dippenaar & Associates, with offices in Cape Town and Gauteng representing South African and international clients.
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