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Can you negotiate transfer costs? Yes!
You are selling a property (or buying a property and about to make an offer to purchase) and your conveyancing attorney has provided you with a quotation for the transfer costs; and you are wondering whether you can negotiate those costs or whether they are set in stone.
The short answer is that yes, the conveyancing costs (also known as "attorney transfer costs") component of the transfer costs is negotiable. Property sellers and purchasers can and should initiate a negotiation with their conveyancing attorneys to reduce the transfer costs.
Attorneys are NOT allowed to offer discounts
Because of various archaic rules, lawyers in South Africa are not allowed to initiate an offer of discounted attorney transfer fees. So, if you ask what the transfer costs are, the lawyer will always show you the standard transfer costs (although they may add that they are open to negotiations). Click here if you want to see what the standard transfer costs are for property transfers.
Attorneys ARE allowed to negotiate fees
Whilst attorneys are not allowed to market discounted rates on their transfer cost charges, they are allowed to negotiate; but YOU, the client must initiate the negotiations, they are not allowed to initiate it. It is perfectly appropriate for you to ask for a 20 percent discount on the fees the attorney proposes.
Standard transfer costs (incl. conveyancing)
Enter your property value into the calculator below, this will then output the Transfer Attorney fees (conveyancing fees), and you can use that as a starting point in your negotiations with your conveyancing attorney:
Example: Transfer costs for R1,000,000 property
Transfer Attorney Fees R26,835
Postages & Petties R776
Deeds Office Fees R1,464
Electronic Generation Fee R794
FICA R460
Deeds Office Searches R345
Rates Clearance Fees R690
Transfer Duty R0
Total Transfer Costs (incl VAT) R31,274
Which items can you negotiate
The only transfer cost item which is really negotiable is the transfer attorney fee (sometimes referred to as the "conveyancing fee"). Transfer duty is fixed and set by government, whilst the other items are real costs which the conveyancing attorney is going to incur. So, in the instance of the R1m property you would want to negotiate the transfer attorney fees of R26,835 down.
When a Property Sale falls through
It sometimes happens that the above negotiated transfer costs have already been paid, and the property transaction, for some reason, does not occur (ie it "falls through" or is cancelled). There are several matters which then have to be decided/negotiated/agreed between the buyer, seller and conveyancing attorneys (and this negotiation can occur in the traditional manner, via mediation, via arbitration or via court actions):
- What are the reasons the deal fell through?
- Is there a way to "save" the deal?
- Were the conveyancing attorneys negligent in any way?
- Were any other parties negligent?
- What does the offer to purchase / sale agreement specify should happen under these circumstances?
- What do the conveyancing attorneys get paid? Full fees, partial fees or none?
Property transfer & sale Info
Sellers of property & buyers, speak to a property lawyer before you hire an estate agent!
- The property transfer process in South Africa - protect your interests.
- Conveyancing lawyers in Cape Town.
- Transfer costs calculator for property anywhere in South Africa.
- Can I negotiate transfer costs?
- Transfer attorney fees
- Fixed fee conveyancing in South Africa. Possible?
- Understanding the various conveyancing costs.
- Conveyancing quote
- New conveyancing fees from 27 May 2024
- Deeds office fees 29 Feb 2024.
- Law Society conveyancing fees 2023
- Law Society conveyancing fees 2024
- Conveyancing fees 2025
- Conveyancing fees 2026
- Bond attorney fees
- Transfer Duty calculator
- Deceased estate property transfer costs
- Deeds Registeries Act.
- Servitudes
- Usufruct Agreement on Property in South African law.
- Usufruct value calculator (only one in South Africa)
- Usufruct Agreement on Property in South African law.
- Land conveyancing
- Transfer attorney vs bond attorney.
- Commercial Property:
- Marriage/Divorce-related:
- How to transfer property from husband to wife (or vice versa); whilst still married (ie not getting divorced).
- "Protection" of fixed property using a trust.
- Conveyancers conduct the transfer of property ownership from one spouse to another (or to a third party, if relevant).
- Liquidator to sell property & divide proceeds as part of divorce.
- Property sales
- Use conveyancer to guide your private property sale.
- Instead of using real estate agents rather use professional lawyers to sell your property.
- Urgent house sale.
- How to check whether an estate agent is licensed.
- Example of a property sales agreement.
- FLISP Housing subsidies.
- Property practitioner's Act.
- Code to guide conduct of property practitioners.
- Property purchases
- Scams property purchasers should watch out for.
- Home loan repayments calculator, with an estimate of the adjustment to prime to reflect the borrower's credit risk profile.
- Terminology
- Arranging lodgement
- Compliance certificates
- Conveyancer's certificate
- Deed of Sale
- Deeds officer examiner
- Existing bonds
- FICA documents
- Levy clearance certificate
- Offer to purchase
- Property sale agreement
- Property search
- Rates clearance certificate
- Statement of account
- Suspensive condition
- Title deed
- Transfer documents
Conveyancing & property transfer discussion forum
Note that this is a public forum - exercise caution before acting on info and use at own risk. Anybody may ask and answer, and you don't know what their level of expertise is. No information on this website should be acted on without first consulting with a lawyer to test its validity. Do not share private details here.