Buying a House in South Africa: The Legal Process Explained (2025)

Buying a home is likely the biggest investment you'll ever make. But once you've found your dream home and signed the "Offer to Purchase," the real work begins. The legal process of transferring ownership (conveyancing) can be confusing and slow.

This guide breaks down the legal steps of buying a house in South Africa, so you know exactly what to expect.

1. The Offer to Purchase (OTP)

The process starts when you sign an Offer to Purchase. This is a legally binding contract. Once the seller signs it, you cannot simply change your mind without facing severe financial penalties.

Key Clauses to Watch:

Voetstoots Clause: This means you buy the property "as is." The seller is not liable for patent (visible) defects. However, they must disclose latent (hidden) defects they knew about.
Suspensive Conditions: The deal is usually "suspended" until certain things happen, like:
- Bond Approval: You getting a loan from a bank within a set time (e.g., 30 days).
- Sale of Existing Property: You selling your current home first.
- If these conditions aren't met by the deadline, the deal falls away automatically.
Occupational Rent: If you move in before the transfer is registered, you must pay rent to the seller. Make sure this amount is agreed upon in writing.

2. The Three Attorneys

You might be surprised to find there are usually three different attorneys involved in one transaction.

Transferring Attorney (Conveyancer): Appointed by the Seller (usually), but paid for by You (the Buyer). They manage the entire transfer process.
Bond Attorney: Appointed by the Bank granting your bond. They register the mortgage bond over the property. You pay their fees.
Bond Cancellation Attorney: Appointed by the Seller's Bank. They cancel the seller's existing bond. The Seller pays their fees.

3. The Transfer Process: Step-by-Step

The entire process usually takes 3 months from signing the OTP to getting the keys.

Step 1: Signing Documents

Once your bond is approved, you will be called to sign documents at both the Transferring Attorney and the Bond Attorney.

Tip: You will need your FICA documents (ID and Proof of Residence) for everyone.

Step 2: Paying Costs

You will need to pay the transfer costs and bond costs to the attorneys. This includes:

Transfer Duty: A tax paid to SARS (on properties over R1.1 million).
Conveyancing Fees: The lawyer's fee for doing the work (based on a tariff).
Deeds Office Levies: Administrative fees.

Step 3: Clearances

The Transferring Attorney must get three key certificates:

Rates Clearance Certificate: Proving all rates and taxes are paid to the Municipality.
Transfer Duty Receipt: Proving tax has been paid to SARS.
Levy Clearance (Sectional Title only): Proving body corporate levies are paid.

Step 4: Lodgement

All three attorneys coordinate to hand in their documents to the Deeds Office simultaneously.

Step 5: Registration

About 7-10 working days after lodgement, the Deeds Office examines the papers. If all is correct, the transaction comes up for "Prep" (Preparation). The next day, the property is officially Registered in your name.

4. The Costs: What to Budget For

Many first-time buyers only budget for the deposit and forget the "hidden" legal costs. These must be paid in cash before the transfer can happen.

Transfer Duty (2025 Rates)

Properties under R1,100,000: R0 (Exempt)
R1,100,001 – R1,512,500: 3% of the value above R1.1m
R1,512,501 – R2,117,500: R12,375 + 6% of the value above R1.5m
R2,117,501+: Rates increase progressively.

Note: If you buy from a developer, you usually pay VAT instead of Transfer Duty. You never pay both.

Attorney Fees

These are based on the value of the property.

Example: On a R1.5 million house, expect to pay around R35,000 for transfer fees and R35,000 for bond registration fees (excluding Transfer Duty).

FAQ

Can I choose my own conveyancer? Usually, the Seller appoints the conveyancer. However, you can negotiate this in the Offer to Purchase.

What is the "72-hour clause"? This allows a seller to continue marketing the property while you are waiting to sell your own house. If they get a better offer, they can give you 72 hours notice to waive your condition (i.e., buy the house immediately) or lose the deal.

What happens if I discover defects after moving in? If the defect was hidden (latent) and the seller knew about it but didn't tell you, you may have a claim for damages. If it was obvious (patent), the voetstoots clause protects the seller.

Need a Conveyancer?

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