It can be so very confusing to figure out the difference between transfer duty and transfer costs, especially as a first-time buyer. Let us break it down:
Transfer Duty refers to the property taxes payable by the purchaser or the person acquiring the real right and is payable to the conveyancer who in turn pays it to SARS. The transfer duty is calculated on the fair value of the property or the real right of which the first R 1,000,000.00 is exempt from any taxes.
Transfer Costs on the other hand are the costs that are charged by the conveyancer to attend to the transfer of the property or real right into the name of the purchaser or owner to be of the real right. These costs are calculated on the value of the transaction which usually is also the fair value of the property (or in other words the purchase of the property) plus any other fees and disbursements required to transfer the property like the Deeds Office fees, postage, and petties and so on.
Contact our professionals on 041 363 6044 or info@kaplans.co.za for sound legal advice.
