Most South African sellers underestimate their selling costs by a significant margin. The headline sale price looks one way; what lands in your account is another figure entirely. This guide breaks down every cost category, gives you worked examples on a real property, and tells you what to watch for before you sign a mandate.
The full list of selling costs
When selling a property in South Africa, you will encounter some or all of the following costs depending on your circumstances:
- Estate agent commission — the largest single cost for most sellers
- Bond cancellation fees — payable to a bond cancellation attorney if you have a home loan
- 90-day early settlement penalty — charged by your bank if transfer completes before 90 days' notice
- Compliance certificates — electrical, plumbing, gas, electric fence, beetle (where applicable)
- Levies and rates in arrears — must be settled before transfer can proceed
- Capital Gains Tax — payable if the property is not your primary residence and you've made a gain
- Moving costs — not a legal cost, but a real one
Transfer duty and bond registration are costs the buyer pays. They do not come out of your proceeds.
Worked example: selling a R2.5 million property
Here is a realistic cost breakdown for a seller with a R1.1 million bond balance who accepts an offer at R2.5 million:
This example uses typical mid-range figures. Your actual costs will differ based on your bond balance, the agent commission rate you negotiate, and which compliance certificates your municipality requires. Use the Zettl seller tools to run your own numbers.
Estate agent commission
Agent commission is the biggest variable in your selling cost calculation. In South Africa, commission is negotiable — there is no legislated rate.
Typical commission rates:
| Mandate type | Typical commission range |
|---|---|
| Open mandate | 6% – 7.5% + VAT |
| Sole mandate | 5% – 6% + VAT |
| Private sale (no agent) | 0% |
At 5.75% plus VAT (15%), the commission on a R2.5 million sale is R165,313. At 7.5% plus VAT, the same sale costs you R216,563 in commission alone — a difference of over R50,000 for negotiating a lower rate before signing.
What to negotiate: Ask for a sole mandate in exchange for a lower rate. Agents prefer sole mandates (they are guaranteed the commission regardless of who introduces the buyer) and will often drop their rate by 0.5% to 1% to secure one.
Get at least three agents to value your property before signing anything. Commission is negotiable at the point of signing the mandate — not after.
Bond cancellation costs
If you have a home loan, two separate costs arise when you sell:
1. Outstanding bond settlement amount
This is simply how much you still owe the bank. It is deducted from your proceeds at transfer and paid to the bank before you receive your net amount. Check your most recent bond statement for the current balance — remember it reduces slightly each month as you pay.
2. Bond cancellation attorney fees
Your bank appoints a bond cancellation attorney to handle the legal process of cancelling the mortgage bond once the property transfers. You pay this attorney's fees. Under the Law Society of South Africa's fee guidelines, bond cancellation fees on most residential properties fall between R3,500 and R5,500.
3. The 90-day early settlement penalty
Most South African home loan agreements require 90 days' written notice before early settlement. If transfer completes before those 90 days are up — which it almost always does, since transfer typically takes 6 to 12 weeks — the bank charges you an early settlement penalty equivalent to 90 days' interest on the outstanding balance.
To avoid this penalty: give your bank written notice as soon as you accept an offer. If you notify them the day you sign the offer to purchase, you may complete transfer within the notice period and avoid the charge entirely. Some banks waive this for clients with long-standing accounts — it is always worth asking.
Compliance certificates
South African law requires sellers to provide compliance certificates confirming the property meets minimum safety standards. The specific certificates required depend on your property type and municipality:
| Certificate | Who requires it | Typical cost |
|---|---|---|
| Electrical COC | Required nationwide | R 500 – R 1,500 |
| Plumbing / water installation | Most municipalities | R 500 – R 1,200 |
| Electric fence | Required if an electric fence is present | R 400 – R 800 |
| Gas installation | Required if LPG/natural gas is installed | R 500 – R 1,000 |
| Beetle-free | Common in coastal provinces (KZN, WC) | R 500 – R 1,500 |
The real cost is often the repairs, not the certificate. An electrician certifying your property may find outdated wiring, insufficient earthing, or non-compliant plugs. Repairs to pass the electrical inspection can run from a few hundred rand on a modern property to R15,000–R30,000 on an older home. Get a pre-inspection done before listing if your property is more than 15 years old.
Rates and levy clearance
Before a property can transfer, your municipality must issue a rates clearance certificate confirming that all municipal rates and taxes are up to date. In practice, municipalities often require payment two to three months in advance, so you may need to pay future rates at transfer to obtain the clearance.
If your property is in a sectional title scheme (an apartment complex, cluster, or gated estate), your body corporate will also require levy clearance. Any arrear levies must be settled before transfer.
These amounts are not additional costs per se — you would have paid rates and levies anyway — but the upfront payment timing can affect your cash flow around the time of sale.
Capital Gains Tax
If you are selling your primary residence, the first R2 million of capital gain is excluded. Most sellers of a primary home pay no Capital Gains Tax.
If the property is an investment property, a rental, or a second home, CGT applies. The calculation is complex and depends on your base cost, improvement costs, and your income tax bracket. Consult a tax practitioner before selling an investment property.
The costs the buyer pays (not you)
It is worth being clear on what you do not pay:
- Transfer duty — the buyer pays this to SARS (or VAT applies if you are a developer)
- Transfer attorney fees — the buyer pays the conveyancer who handles the transfer
- Bond registration fees — the buyer pays these if they are taking out a loan
Buyers sometimes ask sellers to absorb these costs as part of a deal, but this is a negotiation, not a legal obligation.
What sellers most commonly underestimate
Based on the figures Zettl sees sellers input, the three costs most commonly left out of mental calculations are:
1. The 90-day bond penalty. Few sellers know this exists until their agent or attorney mentions it. On a R1 million bond it costs around R27,000–R31,000. Give your bank written notice the day you accept an offer.
2. Compliance repair costs. The certificates themselves cost R500–R1,500 each. The work required to pass them is the real variable — especially on older properties with original wiring.
3. The VAT on agent commission. Commission is quoted as a percentage of the sale price, but VAT of 15% is added on top of that. At 5.75%, the full commission cost is actually 5.75% × 1.15 = 6.61% of your sale price.
How to calculate your actual net proceeds
The variables in your calculation are:
- Your agreed sale price
- The commission rate you negotiate
- Your outstanding bond balance
- Whether the 90-day penalty applies
- Which compliance certificates your property needs
- Your municipal rates situation
Use Zettl's seller tools to enter your specific numbers. The calculator uses current LSSA fee scales and shows you your full cost breakdown before you commit to anything.
- Agent commission: 5%–7.5% + VAT — negotiate before signing the mandate
- Bond cancellation: R3,500–R5,500 in attorney fees, plus your outstanding balance
- 90-day penalty: around 90 days' interest on your bond — give notice early to avoid it
- Compliance certificates: R500–R1,500 each, but repairs can cost significantly more
- Transfer duty and transfer attorney fees are paid by the buyer, not you
- Capital Gains Tax only applies if the property is not your primary residence
Run your own numbers for free at zettl.co.za — no account, no agents, no sales calls.