What Fees Must I Be Aware of When Buying a Property?

When buying a property in South Africa, several fees come into play, often catching first-time buyers by surprise:

  • Transfer Duty: This government tax is based on the property’s value and is required for properties over a certain threshold.
  • Conveyancing Fees: Paid to your conveyancing attorney for handling the legal aspects of the property transfer.
  • Bond Registration Fees: If you’re taking out a mortgage, these are the fees for registering the bond with the Deeds Registry.
  • Home Loan Initiation Fees: Charged by banks to process your home loan application.
  • Inspection Fees: For building inspections or electrical compliance certificates. Understanding these fees upfront can help you budget effectively and avoid unexpected expenses during the property buying process.