Transfer Duties are payable upon transferring property from one owner to another owner. Transfer Duties are not subject to Value Added Tax (VAT). Transfer Duties are one of the amounts one has to take into account when purchasing and financing a property. Banks or Home Loan providers don’t always finance 100% of the purchase property let alone Transfer Duties and Other associated cost and fees when purchasing a property. If at all possible try to have at least 20% available free cash on the purchase price of a property. Property Purchases up to R600,000 are free of Transfer Duties which will assist many first time home buyers.
Transfer Duties not only apply to the sale of a property but any time a property or part of a property transfers ownership. According to SARS transfer duty might be applicable on the following transactions
- Antenuptial and postnuptial contracts.
- Donatio mortis causa (a gift made in contemplation of death).
- Partition agreements.
- Redistribution agreements (in the process of the liquidation of a deceased estate).
- Nomination agreements.
- Cession or assignment.
- Cancellation agreements.
- A decree of divorce.
- By way of prescription.
- Massing of estates.
- Marriage within community of property.
- Conversion of close corporations into private companies, or vice versa.
For more information on transfer duties consult the SARS website on Transfer Duties
Transfer Duties Table
|Purchase price or Value of property (R)||Rate|
|0 – 600 000||0%|
|600 001 – 1 000 000||3% of the value above R600 000|
|1 000 001 – 1 500 000||R12000 + 5% of the value exceeding R1 000 000|
|1 500 001 and above||R37000 + 8% of the value exceeding R1 500 000|