| Fee Structure | Full-Service Agency (5% to 7% + VAT) | Discount Agency (~3% + VAT) | deedy |
|---|---|---|---|
| Effective Rate (incl. 15% VAT) | 5.75% to 8.05% | ~3.45% | 0% commission |
| On a R2,000,000 Home | R115,000 to R161,000 | ~R69,000 | R199 / month until sold |
| Net Seller Saving vs Full Service | R0 | Saves R46,000 to R92,000 | Saves R113,000+ |
Guidance hubSeller
How Much Does It Really Cost to Sell a House in South Africa?
30 Sept 2026 • By Deedy
Discover the real cost of selling a house in South Africa. From agent commission and bond cancellation to rates clearance, calculate your true net equity.
Most articles answer this with one number: agent commission, usually quoted as "5% to 7%." That cost is real, but it is also only one line item in a bill that has several others attached to it—some of them genuinely surprising to first-time sellers.
Here is the complete picture, cost by cost, so you know exactly what leaves your pocket and what stays in it.
1. The Cost That Gets All the Attention: Commission
If you sell through an estate agency, you will pay commission plus 15% VAT on top of it. Rates vary, but 5% to 7% is the standard high-street agency range, with some hybrid agencies offering a discounted structure around 3%.
This is the number everyone quotes. It is not the whole bill.
2. The Cost Almost Nobody Mentions Upfront: Cancelling Your Bond
If you have an existing mortgage on the property, you must formally cancel it at the Deeds Office before transfer can register. That carries two distinct costs:
The Notice Period & Early Termination Penalty
Under Section 125 of the National Credit Act, banks are entitled to charge an early settlement fee of up to 90 days' interest if advance notice is not provided. This charge decays daily: the earlier you give notice, the less penalty interest you pay. If your transfer registers before that 90-day window elapses, the bank charges penalty interest on the shortfall days.
Worked Example: If your outstanding bond balance is R1,500,000 at 11% interest, your daily interest charge is roughly R452 per day. If your transfer registers only 30 days after giving notice, you are short by 60 days—adding roughly R27,100 in penalty interest directly to your settlement figures.
Bank Validity Windows to Watch: Your notice does not stay valid indefinitely. Major retail banks apply different expiration rules:
| Mortgage Lender | Notice Period | How to Submit Notice | Early Termination Penalty (If Notice Not Given) | What Happens If Home Doesn't Sell in 90 Days |
|---|---|---|---|---|
| Nedbank | 90 days | Nedbank Online Banking (Home Loans > Manage your loan > Place a 90-day notice) or written form | Up to 90 days' interest on the remaining loan balance, calculated pro-rata for the unexpired portion of the notice period. | The notice remains valid for up to 1 year; if the home does not register within 12 months, simply submit a fresh notice. |
| Standard Bank | 90 days | Standard Bank Banking App or email to Home Loans Cancellation Team | Pro-rata penalty interest on the outstanding loan balance for the unexpired portion of the 90 days. | Notice expires (usually after 6 months); simply renew by submitting a fresh notice without penalty. |
| First National Bank (FNB) | 90 days | FNB Online Banking / App via "Cancel Home Loan" request | Up to 90 days' interest calculated on the outstanding balance; reduces proportionally each day as notice runs. | Notice lapses; you can submit a new cancellation notice request once you have active buyer interest. |
| ABSA | 90 days | Absa Banking App, Absa Online, or phone notice via 0860 111 007 | Interest charged only for the unserved balance of days if registered before day 90. | Automatic cancellation of notice after the active window; a new notice can be lodged at any stage. |
| SA Home Loans | 90 days | Formal written cancellation notification letter or client portal | 90 days' pro-rata penalty interest calculated against the remaining settlement figure. | Can be extended or renewed without incurring charges or penalties. |
Notify your bank the day you decide to list your home, and track your specific lender's validity window so the notice does not quietly lapse and restart the penalty clock.
The Bond Cancellation Attorney's Fee
Your lending bank appoints its own cancellation attorney from its legal panel to attend at the Deeds Office, and you carry this expense. This fee is set in line with Law Society guidelines, plus VAT and statutory Deeds Office registration charges. Ask your bank for the exact cancellation quotation once they appoint the attorney, as panel administrative disbursements and search fees vary.
3. The Cost That Catches Sellers Off Guard: Rates Clearance
Before ownership can transfer, the local municipality must issue a Rates Clearance Certificate confirming all municipal debt is settled.
Advance Billing: Municipalities do not simply check that you are paid up to date. They require you to pay between 2 and 6 months of rates, refuse, and utilities in advance before issuing the certificate to ensure the account remains funded during registration.
Is It Lost Money? No. Any unused advance balance is refunded to you after transfer registers, but you must have the cash liquidity available upfront.
Admin Fee: Municipalities charge an additional non-refundable application fee for issuing the certificate itself, typically in the R180 to R350 range.
Your conveyancing attorney applies for these figures and makes the payment on your behalf from funds you provide into their trust account.
4. Compliance Certificates: Legal Standards vs. Contract Custom
Every property transfer requires statutory compliance certificates. Assuming no major remedial repairs are required, budgeting a few thousand rand across whichever apply to your home is realistic:
Electrical Certificate of Compliance (ECOC): Mandatory nationwide. Valid for 2 years for property transfer purposes, provided no electrical alterations have taken place during that period. (Inspections typically cost R800–R1,500; repairs to bring older distribution boards or wiring up to SANS standard will add to this). deedy connects you directly with certified electricians to inspect and certify your installation.
Gas Compliance Certificate: Mandatory nationwide if the property has fixed gas installations (hobs, braais, water heaters). While general regulations allow a 5-year validity, standard conveyancing practice and sale agreements routinely require a certificate issued within the last 1 to 2 years. deedy connects you with verified gas practitioners to inspect and issue compliance.
Electric Fence System Certificate (EFSCOC): Required if your property has an energized fence. Under Regulation 12(4) of the Electrical Machinery Regulations, this certificate is legally transferable and does not carry a statutory expiry date unless the fence has been altered or extended. In practice, however, check your sale agreement: many standard contracts insert a clause requesting a certificate no older than 1–2 years out of habit. deedy links you with accredited electric fence installers if testing or certification is needed.
Water & Plumbing Certificate: Required strictly within the City of Cape Town under its municipal bylaws. Outside Cape Town, it is not a national requirement unless specified by local municipal bylaw.
Beetle-Free Certificate: Not a statutory law, but an established contractual custom in coastal regions (Western Cape and KwaZulu-Natal). Inland properties rarely require one.
5. What the Buyer Pays (Don't Confuse These With Seller Costs)
| Cost Item | Who Pays | Typical Amount on a R2,000,000 Home | Notes & Regulatory Rules |
|---|---|---|---|
| Estate Agent Commission | Seller | R115,000 to R161,000 (R0 with deedy) | 5% to 7% + 15% VAT on traditional mandates. deedy charges R199/month listing fee with 0% commission. |
| Bond Cancellation Legal Fee | Seller | R4,500 to R6,000 | Paid to the bank's cancellation attorney to cancel the mortgage at the Deeds Office; distinct from the transfer attorney. |
| Early Bond Termination Interest | Seller | R0 (with 90 days' notice) to ~R20,000+ | Penalty interest under the National Credit Act; avoidable by submitting formal written notice 90 days prior to cancellation. |
| Municipal Rates Clearance Advance | Seller | R6,000 to R15,000 | 2 to 6 months of rates and services paid in advance under Section 118 of the Municipal Systems Act (excess refunded post-transfer). |
| Rates Clearance Admin Fee | Seller | R180 to R350 | Municipal application fee to issue the formal clearance certificate. |
| Electrical Compliance (ECOC) | Seller | R1,000 to R3,500+ | Mandatory nationwide under SANS 10142-1 Edition 3.3 (includes inspection and typical minor remedial fixes). |
| Other Compliance Certificates | Seller | Varies by property | Gas, electric fence, beetle, or Cape Town water certificates where applicable. |
| Transfer Duty | Buyer | R0 up to R1,210,000 (R33,786 on R2m) | Not a seller deduction. Paid by the buyer directly to SARS via the conveyancer under statutory SARS Transfer Duty brackets (0% up to R1,210,000 threshold). |
| Transfer Attorney Fees | Buyer | Not a seller cost | Legal conveyancing fees paid by the buyer based on recommended national attorney fee guidelines. |
Much of the confusion around selling costs comes from articles that mix buyer and seller obligations:
- Transfer Duty: A statutory tax paid by the buyer directly to SARS (properties valued at or under R1,210,000 are exempt). (Note: If the seller is a registered VAT vendor selling property in the ordinary course of business, 15% VAT applies instead of Transfer Duty).
- Transfer Attorney Fees: The legal fee for registering the deed into the new owner's name is paid by the buyer
- Bond Registration Fees: If the buyer finances the purchase, they pay their bank's bond registration attorney directly.
The Full Cost Breakdown on a R2,000,000 Home
What This Means for Your Equity
On a R2,000,000 home, the statutory costs of selling—rates clearance, bond cancellation, and compliance certificates—are identical whether you use an agent or sell privately. They are simply part of transferring immovable property under South African law.
The commission is the only line item that is genuinely optional, and it is also the largest by a massive margin.
Listing on deedy for R199/month (with your first two months free) replaces that R115,000 to R161,000 cost with flat software tools, biometric facial verification matched against official Home Affairs records before viewings, and live credit-bureau affordability checks before offers are placed—keeping your equity where it belongs.
Know Your Real Number Before You List
Every one of these costs depends on your specific property, your bond balance, and your municipality. Start with an automated, data-backed valuation report to see what your home is actually worth, then work out your true net proceeds against this complete cost breakdown—not just the commission headline.