SecuBond

Buying a House: What Costs Will You Pay, and When?

Article done by Conradie Inc. Attorneys

“It is a comfortable feeling to know that you stand on your own ground. Land is about the only thing that can’t fly away.” (English novelist Anthony Trollope)

With interest and home loan rates at their lowest since 2022, it’s no surprise that South Africa’s property market confidence level at the end of 2025 was sitting at a record high of 87%. That will have been boosted by the country’s positive economic outlook following Budget 2026, and by Budget 2026’s 50% increase in the primary residence exclusion (which should stimulate sales by reducing the CGT payable by sellers).

If you are a buyer about to put in an offer on a house, remember to budget for the various costs you’ll face over and above the purchase price. In all the excitement of your purchase (particularly if it’s your first house!) it’s easy to underbudget. But you really don’t want to risk any unpleasant financial surprises. If you do breach a term of the sale agreement by not paying something on time, you could even face cancellation of the sale and a damages claim.

Only with a proper budget and cash flow forecast can you be confident both that you really can afford to offer for the house you’ve fallen in love with, and that you’ll be able to pay everything you need to, when you need to.

Have a look at the list we’ve put together below and use it to prepare your own detailed cash flow forecast. Ignore anything that doesn’t apply to you and bear in mind that every buyer’s situation will be unique, so this is no more than a generalised checklist.

Costs payable before transfer
The deposit: Most sale agreements – often titled as an “Offer to Purchase” (OTP) until it’s accepted by the seller – require you to pay a deposit, usually 5% or 10% of the purchase price.
Bond/home loan initiation fee: This fee normally incorporates a valuation fee and is added to your loan, but check with whichever bank you use.
Homeowner’s insurance policy and life cover policy (if required by the bank): Be sure to provide for payment of the first premiums before bond registration.
Balance of the purchase price: If the deposit you paid and the bond you took out don’t cover the full price, you’ll need to pay the balance before transfer.
Transfer duty: Unless VAT applies to the sale, transfer duty is payable. This is a government tax payable via SARS before transfer. It applies to all property sales over R1,210,000, on a sliding scale linked to the sale price. This can be a substantial cost!
Transfer fees: The transferring attorney (conveyancer) charges fees based on a sliding scale linked to the sale price. Added to the account will be charges for F**A verification, deeds searches, postages and petties, other disbursements and the like.
Bond registration fees: If you take out a bond, the bank appoints an attorney to register it, with the fees calculated on the size of the loan and including the attorney’s fees, F**A charges and a prescribed Deeds Office registration fee.
Deeds Office fees: These are government charges for both transfer and bond registration.
Rates clearance: Your local municipality will require advance pro-rata payment of municipal rates before it issues the necessary clearance certificate.
Levy clearance: Similarly, if you are buying into a complex, the sectional title’s body corporate or Homeowners’ Association (HOA) will require pro-rata levy payments before issuing a clearance certificate.
Occupational interest (if applicable): If you take occupation before transfer, you need to budget for whatever occupational interest is provided for in the sale agreement.
Utility deposits: If required by your local municipality when opening up water and electricity accounts.
Moving costs: Don’t overlook these when budgeting!
Some of these costs are easily overlooked, but they can add up alarmingly. So, plan for them all before you put in your offer to purchase.

Ongoing monthly costs after transfer
Include bond instalments, municipal rates and taxes, levy payments (if you buy in a sectional title or HOA), utility charges, insurance premiums for the property and the contents, and so on.

One-off costs after transfer
If you plan to do alterations or repairs, redecoration, garden revamps, furniture replacement or anything similar, add these costs to your budgeting so you don’t suddenly run out of money and have to postpone them. For long-term planning, set aside a budget for ongoing home maintenance.

As always, we are here to assist, so let us know if you have any questions, need any further information, or would like help in creating a cash-flow projection specific to your purchase.

Disclaimer: The information provided herein should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact us for specific and detailed advice.

Transfer of property to Heirs

Article done by Rauch Gertenbach attorneys

Part 1:

When a person passes away, their estate, which includes all their assets and liabilities, must be distributed in accordance with their will and relevant legislation. Immovable property, such as a house, sectional title unit, farm or plot of land, may form part of the estate assets. This article will unpack the legal aspects involved in transferring such property from the deceased estate to the rightful heirs. Understanding the legislative principles can help executors and beneficiaries navigate the process with greater confidence and fewer delays.

The heir/s to whom immovable property must be transferred will be determined by the Will of the deceased or, if the deceased did not have a will, by the provisions of the Intestate Succession Act 81 of 1987. It's important to note that heirs do not automatically acquire ownership of immovable property upon the death of the deceased. Ownership is only transferred upon the registration of the property in the Deeds Office, facilitated by the executor and a conveyancer.

The estate administration process is regulated by the Administration of Estates Act 66 of 1965 and starts with reporting the death and the estate to the Master of the High Court, who then appoints an executor to manage the estate's administration. An executor will have been nominated by the Will of the deceased or by a nomination form signed by the intestate heirs in the absence of a Will.

Section 13 of the Administration of Estates Act provides that no person shall liquidate or distribute any assets in the estate of any deceased person except under letters of executorship granted by the Master. The nominated executor therefore has no authority to alienate or distribute any assets in a deceased estate before they have been appointed by the Master by virtue of Letters of Authority or Letters of Executorship.

The executor, once appointed, is responsible for:

Identifying and gathering all assets of the deceased, including immovable property.

Settling any debts and liabilities of the estate.

Preparing and submitting a Liquidation and Distribution (L&D) Account to the Master for approval.

Distributing the remaining assets to the rightful heirs in accordance with the will or the provisions of the Intestate Succession Act.

The liquidation and distribution account is sent to the Master's office for approval and must lay open for inspection at the Master's office, after the Master has examined it. The executor shall place a notice that the account will be so open for inspection by advertisement in the Government Gazette and in a newspaper circulating the district in which the deceased was ordinarily resident at the time of his death.

Section 42(1) of the Administration of Estates Act provides that the Conveyancer will need to lodge a certificate with the Registrar of Deeds, confirming that the transfer is in accordance with the liquidation and distribution account, which account has laid for inspection and that no objections thereto has been received. A transfer therefore cannot take place before the prescribed inspection period for the L&D has passed.

The Conveyancer's fees for attending to the transfer, costs for obtaining any required clearance certificates, and any additional applications that needs to be brought, shall be borne by the estate. If there is a cash shortfall in the estate, the heirs may elect to settle the shortfall or to sell the property. There is no transfer duty payable where immoveable property is transferred from the estate to heirs as these transactions are exempt from transfer duty.

Although any person can be nominated as the executor of a deceased estate, only a Conveyancer can attend to the registration of immovable property in the Deeds office. Rauch Gertenbach attends to the transfers of property in deceased estates where the firm is the nominated executor as well as in estates where the transfers are referred to us by independent executors.

Contact us at [email protected] or 044 601 9900 for any queries relating to deceased estate transfers or the administration of deceased estates. www.rgprok.com

Article by: Aleida Kraamwinkel

Attorney & Conveyancer / Prokureur & Aktebesorger

HOME - Rauch Gertenbach Attorneys ACCESS CONTROL TRADITIONAL VALUES & Litigation, Estates and Commercial Specialists in the Southern Cape. EXCELLENCE IN LAW Our Longevity Value Statement Want to read our Article page for extra information? Go to Articles Want to read our Article page for extra information? Go to Articles PRACTICE AR...

How to Clear Your Name After a Default Judgment Against You: Rescission of Judgments

Article done by Boshoff Attorneys

Most people only become aware that a default judgment has been granted against them when the sheriff arrives with a warrant of ex*****on or when their credit applications are unexpectedly declined. A default judgment is usually issued when a defendant fails to enter an appearance to defend or does not attend trial, and in the Magistrates’ Court, this is regulated by Rule 12. The consequences are severe: adverse credit listings, attachment of assets, and, in some cases, ex*****on against property. A default judgment remains valid for thirty years, which means taking corrective action is essential.

Rule 49 provides a mechanism for applying to have such a judgment rescinded. Any party to the proceedings, or anyone affected by the judgment, may bring an application within twenty days of becoming aware of it. The court has a discretion to rescind the judgment if good cause is shown, and once rescission is granted, the matter proceeds as if no judgment had ever been entered. The defendant is then required to file a plea within the time periods set out in the rules. The effect of the rescission is that the action proceeds as if the judgment were not given, and the defendant must file a plea (within a time stipulated by the court rules).

Immediate Challenges Faced by an Applicant

An applicant for rescission usually faces two immediate challenges. The first relates to the time limit: the applicant must explain how and when the judgment came to their attention, and why the application is being brought only at that stage. Because a party is deemed to have knowledge of the judgment ten days after it is granted, any application brought outside the twenty-day window must be accompanied by a proper explanation and, if necessary, an application for condonation.

The second challenge is explaining the default itself. The applicant must satisfy the court that the default was not wilful and that, had they been aware of the proceedings, they would have taken steps to defend them. This explanation must be set out fully in the founding affidavit.

Requirement of a Bona Fide Defence

The court will also look at whether the applicant has a bona fide defence with some prospects of success. At this stage, the court does not determine the merits in detail, but it must be clear that there is a genuine, triable issue between the parties. This requirement flows from the principle of audi alteram partem, which is central to the idea that every party is entitled to be heard before judgment is given.

Rescission Under the Common Law

Apart from Rule 49, the common law also permits rescission where a judgment was obtained fraudulently, as a result of a mistake in law, or due to a procedural irregularity. Such applications must be brought within a reasonable time and must similarly be supported by a full explanation.

Court Considerations and Next Steps After Rescission

Once the application has been filed together with all supporting documents, the court will consider the credibility of the applicant’s explanation, the reasons for any delay, the extent of the prejudice to the judgment creditor, and the strength of the defence raised. If rescission is granted, the applicant should ensure that their status is updated with the credit bureaus and must prepare to defend the matter properly on the merits. If the defendant again fails to defend, the plaintiff may apply for another default judgment.

In summary, clearing one’s name after a default judgment is achievable, but it requires prompt action, a candid explanation, and a genuine defence to the claim. A well-prepared application not only restores the applicant’s ability to defend the matter but also upholds the fundamental right to be heard, ensuring that the dispute is resolved on its merits rather than by default.



While every reasonable effort is taken to ensure the accuracy and soundness of the contents of this publication, neither the writers of articles nor the publisher will bear any responsibility for the consequences of any actions based on information or recommendations contained herein. Our material is for informational purposes.

“Proud to share this client review!”

To whom it may concern

Today I just want to thank the amazing 2 women I have ever met. Yvonne and Angelique. Thank you so so much for helping and gidding me when my own bank did not even care and dragged the process of securing a bond to more than 3 weeks. I inquired and not even 3min later got a call to assist.The process was made so effortless and I was kept in the loop all the time. The way you made me feel and treated me,not like a client but family.The constant calls from me to ask if everything is ok was handheld so well as i am a first home buyer. So I stress a lot about small things. I was at ease when they explained it step by step and more to me.
You don't ever get client service that goes above and beyond to help.
Secubond seriously i thank you from the bottom of my heart for making my dreams come true in more ways than you can imagine. You have 2 amazing women that keep your company name high and on top way above the others out there.
Well done Yvonne and Angelique for going the extra 10000000000000000000 miles.