The new increased conveyancing fees will come into operation on 31 January 2020 in terms of the Amendment of the Deeds Registries Regulations - Deeds Registries Act 47 of 1937 (Government Gazette No. 7085).
Conveyancing fees have increased for property transfers and bond registrations.
The good news is that government taxes (transfer duty and stamp duty) have not increased.
The fee increase is according to a sliding scale calculated on the value of the property which benefits the low value property market and therefore the lower income bracket. The conveyancing fee has decreased for the low value property market as the fee charged shall not be more than N$5000 where the property value is less than N$500,000 and not be more than N$6800 where the property value is less than N$600,000, plus the parties can negotiate with the conveyancer and agree on a lower fee than the aforementioned.
Where the property value is N$600,000 or more, a conveyancing fee charged shall be N$11,160 plus N$1540 for every N$100,000 or part thereof and where the property value is N$1,000,000 or more, a conveyancing fee charged shall be N$18,860 plus N$1540 for every N$200,000 or part thereof and where the property value is N$5,000,000 or more, a conveyancing fee charged shall be N$49,660 plus N$1925 for every N$500,000 or part thereof.
Having regard to the above-mentioned transfer costs increases it is clear that the property market would be influenced as the total transfer costs for a property have increased.