Transfer duty is the tax SARS charges when ownership of immovable property transfers from seller to buyer. It’s paid by the purchaser and must be settled before the Deeds Office will register the transfer — conveyancers typically collect it at the same time they collect their fees and bond costs.
Properties priced at R1,210,000 or less are exempt. Above that, duty is calculated on a sliding scale: 3% of the value over R1.21m, rising through 6%, 8%, 11%, and topping out at 13% of the value above R13,310,000. The scale is progressive — only the portion in each band is taxed at that band’s rate.
Transfer duty does not apply if the seller is a VAT vendor selling property in the course of business (e.g. a developer selling new units) — VAT applies instead, usually included in the sale price. Estate transfers, divorce-related transfers, and certain corporate restructures may also qualify for exemption or relief.