If you're in the market for a new property, we have excellent news for you! As of March this year, the transfer duty threshold underwent a significant adjustment, providing considerable relief to prospective homebuyers. Properties sold for R1.1 million and less are now exempt from transfer duty, making homeownership more accessible for many. Previously, the exemption only applied to properties sold for R1 million or less. 

You might be wondering what exactly transfer duty is. In South Africa, transfer duty is a tax payable by the buyer when acquiring a property. The amount is determined based on the property's purchase price and is paid to the South African Revenue Service (SARS). The adjustment to the threshold means that properties falling under the R1.1 million mark will no longer incur this tax, resulting in substantial savings for buyers.

It's essential to distinguish between transfer duty and transfer costs, as these terms are often used interchangeably, causing confusion among property buyers. Transfer costs encompass various expenses associated with the transfer of property ownership, including transfer duty, conveyancing fees, deeds office fees, and other administrative charges. While transfer duty is only applicable to properties above the specified threshold, transfer costs are a broader category of expenses incurred during the property transfer process.

At MP|W, we pride ourselves on being your trusted partner in all property-related and conveyancing matters. With our team of experienced attorneys, we are dedicated to providing expert guidance and support throughout your property journey. Whether you're a first-time homebuyer or an experienced investor, our goal is to ensure a seamless and hassle-free transaction, protecting your interests and ensuring compliance with all legal requirements. Contact us for property-related assistance: info@mpw.co.za

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