Buyers sometimes assume transfer duty is simply a percentage of whatever price they negotiated with the seller. The actual calculation can involve specific rules concerning consideration and fair value, which is another reason property transactions need professional conveyancing rather than a quick back-of-envelope calculation.
Source: SARS — Guide for Transfer Duty via eFiling
Frequently Asked Questions
Does SARS simply accept any property value entered by a buyer?
No — SARS has rules for determining the value used in transfer-duty calculations.
Can additional consideration affect transfer duty?
Yes, certain additional amounts connected with obtaining registration can be relevant.
Should buyers calculate transfer duty themselves?
They can estimate it, but the conveyancer handling the transaction should confirm the actual amount.