Our Senior Associate and Conveyancer, Ntombi Mthembu, gave legal insight into property transfer duty costs as well as the implications of the announcement by the Minister of Finance transfer duty announcement in the recent budget speech on PowerFM.
What is a transfer duty?
This is a tax all property buyers have to pay, over and above the selling price and is based on the value, not the price of the property.
Speaking to the POWER Breakfast team on Thursday, Ntombi Mthembu, Senior Associate and conveyancer at MNS Attorneys, said transfer duty is a tax that is paid for immovable property.
“Transfer duty is a tax payable to the government or Sars by the purchaser prior to transferring the property. For first time home buyers, this means they can now qualify to shop around for properties within the threshold of R1 million.”
She adds that certain costs such VAT and transfer fees are lessened on the purchase.
“As mentioned when buying a property you have to factor in transfer fees and VAT, this then lessens the burden on the potential buyer.”