What's the purchase process to buy a property in Durban?

Authored by the expert who managed and guided the team behind the South Africa Property Pack

Everything you need to know before buying real estate is included in our South Africa Property Pack

Who is the author of this content?

THE AFRICANVESTOR

A team specialized in real estate investing in African countries

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Durban. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At The AfricanVestor, we explore the South African real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Durban, Cape Town, and Johannesburg. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

How do I find out if foreigners are allowed to buy property in Durban?

Foreigners can freely buy property in Durban without any residency requirements or ownership restrictions as of September 2025.

South Africa's property laws allow international buyers to purchase any type of residential or commercial property with full ownership rights. You don't need permanent residence, a work permit, or citizenship to own property in Durban.

However, non-resident foreigners face practical limitations regarding financing. South African banks typically offer maximum 50% mortgage financing to foreign buyers, requiring you to provide at least 50% of the purchase price in cash. You'll also need to open a local South African bank account for the property transaction.

Large property transactions may require approval from the South African Reserve Bank (SARB), particularly for purchases above certain thresholds. Your conveyancing attorney will guide you through any necessary SARB applications during the purchase process.

It's something we develop in our South Africa property pack.

What are the typical types of property available for purchase in Durban?

Durban's property market offers five main categories suitable for both residential living and investment purposes.

Apartments and condominiums represent the largest segment, ranging from affordable studio units in older buildings to luxury beachfront penthouses with modern amenities. These properties typically offer sectional title ownership with shared facilities like swimming pools, gyms, and 24-hour security.

Freestanding houses dominate Durban's suburban areas, particularly popular with families seeking gardens, privacy, and security features. These properties usually include 2-4 bedrooms, private gardens, and often come with staff quarters or additional outbuildings.

Townhouses and duplexes provide a middle-ground option, offering lock-up-and-go convenience with sectional title security benefits. These properties typically feature 2-3 bedrooms, small private gardens, and shared amenities within secure complexes.

Vacant land opportunities exist throughout Durban's lifestyle estates and developing suburbs, allowing buyers to construct custom homes according to their specifications and budget requirements.

How do I check if the title deed of the property is clean and transferable?

Verifying a property's title deed requires conducting an official search at the local Deeds Office using specific property details.

Visit the nearest Deeds Office with the current owner's full name, ID number or birth date, and the property's erf number (not just the street address). Request a title search and pay the small fee for an official printout showing current ownership, servitudes, encumbrances, and any legal restrictions affecting the property.

Electronic searches through the DeedsWeb platform offer convenient online access using the same owner and property details. This system provides the same comprehensive information as physical office visits but can be accessed remotely.

The title deed search reveals crucial information including existing mortgage bonds, servitudes (such as right-of-way agreements), municipal liens, and any legal restrictions that could affect your ownership or future development plans.

Your conveyancing attorney will typically conduct this search as part of their due diligence process, but conducting your own preliminary search before making an offer provides valuable peace of mind and negotiation insights.

What is the role of an estate agent in Durban and how do I choose one?

Estate agents in Durban serve as intermediaries who facilitate property transactions, provide market expertise, and coordinate the various aspects of your property purchase.

Agent Service	What They Provide	Why It Matters
Property Search	Access to listings, property viewings, market knowledge	Saves time and identifies suitable options
Price Negotiation	Comparative market analysis, offer strategy, negotiation skills	Helps secure better purchase prices
Legal Coordination	Document preparation, conveyancer referrals, timeline management	Ensures smooth transaction process
Market Intelligence	Area insights, pricing trends, development plans	Informs better investment decisions
Transaction Management	Deadline tracking, stakeholder communication, problem resolution	Reduces buyer stress and complications

What are the upfront costs I need to prepare for before making an offer?

Budget approximately 8-10% of the property purchase price for upfront costs beyond your deposit requirement.

Transfer duty represents the largest single cost, with exemptions for properties below R1,210,000. For a R2 million property, expect to pay roughly R37,000 in transfer duty to the South African Revenue Service (SARS).

Legal and conveyancing fees typically range R30,000-R40,000 for standard residential transactions, covering your attorney's services throughout the transfer process. Bond registration fees add another R24,000-R30,000 plus R6,000 in initiation costs if you're financing the purchase.

Municipal rates clearance certification requires paying outstanding municipal rates in advance, which can vary significantly depending on the property's payment history. Compliance certificates for gas, electrical, and pest inspections typically cost R5,000-R10,000 combined.

Additional costs include Deeds Office registration fees, property valuation fees (if financing), and potential levy clearance certificates for sectional title properties. Always request detailed cost estimates from your conveyancing attorney before proceeding.

How do I make a legally binding offer to purchase in Durban?

Submit a written Offer to Purchase (OTP) document that includes all terms, conditions, and suspensive clauses to create a legally binding agreement.

The OTP must specify the exact purchase price, deposit amount, transfer date, and any conditions that must be met before the sale becomes unconditional. Common suspensive conditions include mortgage approval, satisfactory property inspection, and electrical compliance certification.

Include specific deadlines for each suspensive condition, typically allowing 30 days for bond approval and 14 days for inspection completion. The offer should also specify who pays for various costs such as transfer duties, legal fees, and compliance certificates.

Once the seller signs the OTP accepting your terms, the agreement becomes legally binding on both parties. Either party can withdraw if suspensive conditions aren't met within the specified timeframes, but withdrawal after conditions are fulfilled can result in legal penalties.

Always include a clause allowing for professional property inspection and specify the condition in which the property should be handed over, including any included fixtures, fittings, or appliances.

What happens once my offer is accepted, and how long does transfer usually take?

The transfer process begins immediately after offer acceptance, with property registration at the Deeds Office typically taking 6-12 weeks to complete.

Your first step involves paying the agreed deposit (usually 10% of the purchase price) into the conveyancing attorney's trust account within 7 days of acceptance. Simultaneously, initiate your bond application if financing the purchase, as this process can take 3-4 weeks for approval.

The seller's chosen conveyancing attorney manages the entire transfer process, preparing all necessary documents and ensuring compliance with legal requirements. This includes obtaining rates clearance certificates, compliance certificates, and coordinating with the bond attorney if applicable.

During weeks 4-8, the conveyancer prepares transfer documents, calculates all duties and fees, and submits the transfer application to the Deeds Office. You'll receive detailed statements showing exact amounts due before the transfer date.

Final registration occurs when all documents are lodge-ready and all fees are paid. The Deeds Office processes the registration within 1-2 weeks, after which you receive the keys and become the legal owner.

Which documents and permits do I need to complete the transfer process?

Property transfer requires several key documents that prove your identity, financial capacity, and legal compliance with South African property laws.

1. **Signed Offer to Purchase (OTP)** - The legally binding agreement between buyer and seller2. **Certified copy of passport and visa** - Proof of identity for foreign buyers3. **Proof of funds or mortgage approval letter** - Demonstrating financial capacity for the purchase4. **Municipal rates clearance certificate** - Confirming all municipal rates are paid current5. **Electrical compliance certificate** - Mandatory safety certification for property transfer6. **Gas compliance certificate** - Required if the property has gas installations7. **Pest control certificate** - Wood-destroying insect inspection (if applicable)8. **Copy of current title deed** - Showing legal ownership and property details9. **Levy clearance certificate** - For sectional title properties only

Your conveyancing attorney will guide you through obtaining missing documents and ensure all requirements are met before the transfer date. Some certificates may need renewal if they expire during the extended transfer process.

What are the transfer duties, legal fees, and municipal rates I should expect to pay?

Transfer costs in Durban follow standardized fee structures based on property values and legal requirements as of September 2025.

Cost Category	Amount/Calculation	Who Pays
Transfer Duty	Exempt up to R1.21M, then sliding scale to SARS	Buyer
Conveyancing Fees	R30,000-R40,000 for standard transactions	Buyer
Bond Registration	R24,000-R30,000 plus R6,000 initiation	Buyer (if financing)
Deeds Office Fees	R2,000-R5,000 depending on property value	Buyer
Rates Clearance	Outstanding municipal rates plus penalties	Seller (but impacts buyer)
Compliance Certificates	R5,000-R10,000 combined	Seller typically
Estate Agent Commission	4-7% of sale price	Seller (factored into price)

We did some research and made this infographic to help you quickly compare rental yields of the major cities in South Africa versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

How does the conveyancing process work in Durban, and who manages it?

The conveyancing process in Durban is managed by qualified conveyancing attorneys who specialize in property law and transfer procedures.

The seller typically chooses and appoints the conveyancing attorney, though buyers can request a specific attorney if agreed upon in the OTP. This attorney becomes responsible for the entire legal transfer process from offer acceptance to final registration.

The conveyancer's role includes conducting title deed searches, preparing all transfer documents, liaising with municipal authorities for rates clearance, coordinating with bond attorneys for financing, and calculating all transfer duties and fees. They also ensure all suspensive conditions are met within specified timeframes.

Throughout the process, the conveyancer maintains a trust account where deposits and transfer funds are held securely until the transfer date. They provide regular updates on progress and request additional documentation as needed.

It's something we develop in our South Africa property pack.

What common mistakes do buyers make with offers to purchase in Durban?

New property buyers in Durban frequently make five critical errors that can jeopardize their purchase or result in unexpected costs.

The most common mistake involves inadequate budgeting for total upfront costs. Many buyers focus solely on the deposit and purchase price while overlooking transfer duties, legal fees, bond registration costs, and compliance certificates that add 8-10% to the final cost.

Buyers often fail to verify estate agent credentials, working with unregistered practitioners who lack proper Fidelity Fund Certificates (FFC). This can lead to deposit theft or inadequate legal protection during the transaction process.

Overlooking title deed encumbrances represents another costly error. Properties may have servitudes, mortgage bonds, or municipal liens that restrict usage or require additional payments that aren't immediately apparent from the listing information.

Many buyers misunderstand suspensive conditions, either setting unrealistic deadlines for mortgage approval or failing to include essential conditions like electrical compliance certification. This can result in forced completion under unfavorable terms or loss of deposit.

What confusions usually happen around transfer duties, rates clearance, and hidden costs?

Transfer duty confusion centers around exemption thresholds and calculation methods that many first-time buyers misunderstand.

Properties valued below R1,210,000 are exempt from transfer duty, but many buyers incorrectly assume this applies to their portion of the purchase price when financing. Transfer duty is calculated on the full property value, not the cash portion you're paying.

Rates clearance requirements often surprise buyers who assume the seller handles all municipal obligations. While sellers must provide clearance certificates, buyers inherit any municipal liens or special assessments that attach to the property, not the previous owner.

Hidden costs frequently include compliance certificate renewals when transfers take longer than expected, additional Deeds Office fees for complex transactions, and penalty interest on municipal rates if clearance takes extended time to obtain.

Many buyers also overlook sectional title levy clearances and special levy assessments that can add thousands to the final transfer cost. Working with experienced conveyancing attorneys and requesting itemized cost estimates prevents most of these surprises.

It's something we develop in our South Africa property pack.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. Blackpen Immigration - Buying Property in South Africa as a Foreigner
2. Ooba - Foreigners Buying Property in South Africa
3. The African Investor - Durban Property Guide
4. Real Estate Australia - Durban Property Market
5. South African Deeds Registry
6. Private Property - Durban Properties
7. South African Government - Deeds Registry Information
8. IOL Property - Hidden Costs When Buying