Who pays lawyer fees when selling a house in South Africa? (2024)

FAQs

Who pays lawyer fees when selling a house in South Africa? ›

Therefore, other than bond cancellation fees that the seller will pay if the seller has a bond that has to be cancelled, lawyer fees are paid by the buyer.

Although the seller typically gets to appoint the conveyancing attorney, it is the buyer who will be required to pay the conveyancing attorney's fees and these fees must be paid in full before the home can be registered in their name at the Deeds Office.

What are the current transfer duty rates? Transfer duty is a tax levied by the South African government on the transfer of property ownership from the seller to the buyer. This tax is calculated as a percentage of the purchase price of the property and is payable by the buyer.

Typically the purchaser pays the transfer fees charged by the conveyancing attorneys attending to the transfer of the property into the purchaser's name. Therefore, other than bond cancellation fees that the seller will pay if the seller has a bond that has to be cancelled, lawyer fees are paid by the buyer.

In South Africa, attorneys can charge a fee of 3.5% on the gross value of the estate and an additional 6% on any growth the estate experiences. Additionally, some attorneys may charge an opening file and taking instructions fee, which can range from R1500 to R2500.

The hourly rate for an advocate in South Africa can vary significantly. For junior advocates, rates might start from around R1,000 to R2,500 per hour. For more experienced senior advocates, fees can range from R3,000 to over R5,000 per hour.

Assuming that what is meant by the term “transfer fee” is a fee for updating the association's records to reflect the transfer of the property from the seller to the buyer, the fee is the seller's responsibility since, according to paragraph 9(a), the seller is responsible for payment of “any fees charged for ...

How much money are you allowed to transfer out of South Africa? ›

As long as you can verify the legitimacy of the source of your funds, there is no limit to the amount of money you can move out of South Africa as a non-resident. However, where the amount exceeds the Foreign Capital Allowance of R10 million, you will require prior approval from the South African Reserve Bank.

Property transfer costs are paid in the case of the transfer of deceased property, but they are paid out of the estate of the deceased. The transfer of deceased property is, however, exempt from transfer duty.

The conveyancer will find the proceeds of the guarantee in his trust account the next morning; and generally speaking, payment is made to the seller, the afternoon following the date upon which transfer is registered.

Proof of your identity. Title deed for the property. Shared Freehold documents for the property (only if your property retains a share of the freehold) or leasehold documents (if it's a leased property). Management Information Pack (required if you pay service charges or if the property is a leasehold).

Selling general and administrative (SG&A) expenses comprise all direct and indirect selling costs, operational overhead costs, and administrative expenses unrelated to production and sales. SG&A often includes rent, utilities, legal fees and insurance.