Transfer Duty on Property.

[Shake&Bake]

I know this must have been asked before, but Tapatalk isn't too friendly with search results.

So apologies for the duplication.

A friend of mine is wrapping up her first home purchase.

The value of the property is R600 000.

To my understanding, there shouldn't be any transfer duty.

Googled a bit and found the following: https://www.ooba.co.za/resources/transfer-duty/

How is transfer duty calculated?
Transfer duty is calculated on the value – not the price – of the property, although, as Dyer explains, SARS will generally regard the purchase price of the property to be its value.

However, he points out that if SARS believes that the purchase price does not correspond with the true value, which may be the case if, say, a property is sold to a family member and its value understated, transfer duty will have to be paid on the true or fair value.

Note: The transfer duty threshold has been raised
Originally, properties up to R900 000 in value were exempt from transfer duty, but that amount has been increased to R1000 000 as of March 2021. This allows some extra breathing space for property investors; an additional R100 000 they can spend on their purchase price before being subject to transfer duty.

However the agent, my friend and my wife are of the opinion that a Transfer duty is still payable.

Is this correct or am I misreading and misunderstanding?

 

[3WA]

No transfer duty to SARS, but you still gotta pay the fees of the conveyancing attorneys and the bond registration attorneys.

 

[Thor]

I know this must have been asked before, but Tapatalk isn't too friendly with search results.

So apologies for the duplication.

A friend of mine is wrapping up her first home purchase.

The value of the property is R600 000.

To my understanding, there shouldn't be any transfer duty.

Googled a bit and found the following: https://www.ooba.co.za/resources/transfer-duty/



However the agent, my friend and my wife are of the opinion that a Transfer duty is still payable.

Is this correct or am I misreading and misunderstanding?

 

[Shake&Bake]

Thank you for the replies.

I understand and agree with the other costs. But they're calling those costs, Transfer Duties.

So I was right and these coloureds (and I can say that, because I'm one) are not/versin.



Liewe George..

 

[3WA]

Thank you for the replies.

I understand and agree with the other costs. But they're calling those costs, Transfer Duties.

So I was right and these coloureds (and I can say that, because I'm one) are not/versin.



Liewe George..

Something seriously dodge if the agent is saying that. Or maybe they’re just using the term “transfer duty” incorrectly.
Try negotiating the “transfer duty”. The SARS fee isn’t negotiable, but the attorney fees are.

 

[Shake&Bake]

Something seriously dodge if the agent is saying that. Or maybe they’re just using the term “transfer duty” incorrectly.
Try negotiating the “transfer duty”. The SARS fee isn’t negotiable, but the attorney fees are.

I actually got to view the invoice and its broken down correctly.
No transfer duty on it.

But these fsckers were adamant, but used the term incorrectly. Mistaking/including those fees as Transfer Duty.

And it wasn't the Agent, but my friend and wife.

Even my sister in law is using the term incorrectly with her other property purchase.

 

[Mike Hoxbig]

Transfer duty is part of the transfer fees, which the transferring attorney will pay to SARS if applicable.

There's no escaping transfer fees...

 

[maxxis]

Ask every lawyer involved for discount if you settle their accounts ahead of time.

Reduced my bond registration costs by 50% and my transfer by 25%.

 

[zerocool2009]

Transfer fees and transfer duty is 2 different things

Any property below R1kk = transfer duty = sars = R0 due

 

[Thor]

Ask every lawyer involved for discount if you settle their accounts ahead of time.

Reduced my bond registration costs by 50% and my transfer by 25%.

This, but yea I used BHM Law but they did not give me any discount, next time I'll ask in writing

Actually still wondering how to force them for discounts if that's even possible like can I drop them for other lawyers or is that up to the seller?

 

[zerocool2009]

This, but yea I used BHM Law but they did not give me any discount, next time I'll ask in writing

Actually still wondering how to force them for discounts if that's even possible like can I drop them for other lawyers or is that up to the seller?

You can only drop the bond side attorney’s! But if you bank smartly you will get 50% discount on that side

 

[Thor]

You can only drop the bond side attorney’s! But if you bank smartly you will get 50% discount on that side

Define, bank smartly?

 

[Venomous]

Thank you for the replies.

I understand and agree with the other costs. But they're calling those costs, Transfer Duties.

So I was right and these coloureds (and I can say that, because I'm one) are not/versin.



Liewe George..

They attorneys should be billing the purchasers directly.

We bought 3 years ago.
After sale is at the attorneys the agent only checked in every so often with us to make sure all is in progress

 

[zerocool2009]

Define, bank smartly?

Fnb, nedbank and absa offer bond attorney discount when buying and take a bond out.

Related to the transfer side, that is out of your hand, but you can always ask the seller!

My last few property buy’s was cash transactions. And I asked before signing the otp, can I choose the transfer side, as I get 40% plus discount!