NCR - Transfer Duties on house

[MeridaHFS]

What makes transfer duties so high?? I'm buying a place to the value of R1,350,000-00 and the transfer costs are R72500-00!! I can buy one hell of a bike with that kind of money...

Can any conveyancy lawyers give me some clarification on this?

[Vuilgoed]

Does that amount include your bond registration costs, or only the transfer duties?

 

Are you transferring to a natural person or to a legal entity?

 

Excluding bond registration, you should be paying about R68000.

 

The following is a typical breakdown for a property of that value (of course I don't provide any guarantee that this is 100% accurate):

 

Transfer Fees	Natural Persons	Legal Persons
Transfer Fees	11,400.00	11,400.00
Vat @ 14%	1,596.00	1,596.00
Deeds Office Levy	500.00	500.00
TOTAL:	13,496.00	13,496.00
Transfer Duty	53,000.00	108,000.00
TOTAL:	66,496.00	121,496.00
Postage and Petties:	399.00	399.00
Rates/Levy Clearance	114.00	114.00
Pro-Rata Rates/Levies	1,140.00	1,140.00
Exclusive Use	0.00	0.00
Bank Electronic Connection Fee	96.90	96.90
Fica	285.00	570.00
TOTAL:	68,530.90	123,815.90

 

If its only for the duties, I think you are being over charged.

[Zula]

Nothing makes it so high. Im not an attorney, Im a CA.

 

 

 

Its called a cash cow. Basically SARS get money for free. Its bloody ridiculous just how high it is. It really makes a difference for a first time buyer where every cent adds up.

 

 

 

I mean, imagine how much kit you could get for you new place with 75k?? Insane

[Andyr249]

That sounds about right.

Transfer duty is prescribed by the Guv-ment so attorneys can't do much about it.
According the table I have Transfer Duty for a natural person on a property which has a value of between R1.2m and R1.4m is maximum of R57 000. Transfer fees (exc VAT) are  about R13 500.
Transfer Duty is calculated at 0% for the first R500 000, 5% on R500 001 up to R1 000 000 and 8% on R1 000 001 and up.

[Dawiemalan]

Transfer fees you can get reduced if your seller is willing to use your appointed attorney and he does the transaction for you pro amico"for free' or for an agreed discounted amount. Transfer duty can be viewed the same way as VAT on the transaction. Only way to bypass that is if the property is in a CC or company and a transfer of shares is executed. if not, you have to cough up. Banks do finance extra costs in some cases. Hope this helps.

[Sarge]

Hi Merida,

It makes me mad as well. Looks as if you just bend over and get screwed whether you like it or not. 72 big ones is a lot of money.

Regards

Sarge

 

[scotty]

Long time since i bought property but if i recall if you take a bond the bank appoints their attorney so its not always possible to use 1 attorney for seller and buyer.

[Andyr249]

That is partly correct Scotty. But I think you meant one attorney for transfer and bond. There are actually two registrations that go to deeds office as what we call "simuls".

The actual transfer costs are not too bad, but the TD is the big blow.

R500k - TD is R0. Transfer Fees (exc VAT) are R7.5K.
R1m - TD is R25K. TF are R13.5K.
R2m - TD is R105K. TF are R15K.

R3m - TD is R185k. TF are R17.5K.

[Squier]

Going through exactly the same thing right now. I'm paying R72k on R1.12mil house. Which doesn't make sense then?

 

 

 

And no, you can't finance these costs anymore. Has to be paid cash.

 

 

 

And yes, that does mean Good bye new bike!

[scotty]

That is partly correct Scotty. But I think you meant one attorney for transfer and bond. There are actually two registrations that go to deeds office as what we call "simuls".

The actual transfer costs are not too bad' date=' but the TD is the big blow.

R500k - TD is R0. Transfer Fees (exc VAT) are R7.5K.
R1m - TD is R25K. TF are R13.5K.
R2m - TD is R105K. TF are R15K.

R3m - TD is R185k. TF are R17.5K.

[/quote']

 Must be 15 years since i last bought, was nowhere near that then.

[MeridaHFS]

When I bought my first property it was below R500k and I was seen as a first time buyer thus you get 108% bond without a problem from the bank. Now you need flippen need roughly R220K just to qualify for a bond and pay for transfers! Getting screwed is an understatement - ass raped is more like it!!

Meanwhile some idiot in parlement buys himself a car to the value of my dream home..

Something is very very wrong with this picture guys...