- 11th Jun 2018
- Posted by: Barnard Inc
- Categories: Articles, Uncategorised
To transfer the ownership of a property, from the seller to the purchaser, can sometimes be a nerve-wrecking and misunderstood process. It is our team at Barnard Incorporated Attorneys’ mission to assist you to enjoy the big life decision of purchasing a house and providing you with sound advice on how to make your home buying experience as effortless as possible.
Why do we transfer a property?
The ownership of immovable property is only obtained upon registration of a property in the purchaser’s name at the relevant Deeds Registry Office. The title deed, which is registered in the purchaser’s name, will primarily be deemed proof of ownership of the property. The main focus of South-Africa’s land registration system is to provide information to the public regarding ownership of land and real rights in property. The primary purpose of registration of a property, is to register and protect these rights.
What are the fees payable in a transfer of a property transaction?
The purchaser is responsible for the transfer fees, namely that of the conveyancing/transferring attorney and the bond fees of the bond attorney. These fees are calculated according to a fixed tariff prescribed by the Law Society of the Northern Provinces. The purchaser is also liable to pay the transfer duty, which is tax levied on the value of any property acquired by any person (including Companies, Close Corporations and Trusts). These rates are prescribed by SARS, as can be seen in the table below:
|Value of the property (R)||Rate|
|0 – 900 000||0%|
|900 001 – 1 250 000||3% of the value above R900 000|
|1 250 001 – 1 750 000||R10 500 + 6% of the value above R 1 250 000|
|1 750 001 – 2 250 000||R40 500 + 8% of the value above R 1 750 000|
|2 250 001 – 10 000 000||R80 500 +11% of the value above R2 250 000|
|10 000 001 and above||R933 000 + 13% of the value above R10 000 000|
The seller is responsible for payment of all the rates, taxes and levies of the property up until the date of registration of the transaction and the fees, so as to cancel an existing bond over the property.
For a stepwise guide on the process of transferring property, click here.
We are aware that every transaction is unique and we therefore advise that you consult our conveyancer to assist you in any transfer related queries you may have, so as to ensure that we can assist you in the transfer of your property in an effective and effortless manner.
For assistance e-mail us at email@example.com or phone us in 0861 088 088.
Key words: conveyancing and transferring attorneys Gauteng