Buy a Property in South Africa

Foreign nationals can buy property in South Africa without limitations and without being constrained to maintain a residency status. Our lawyers in South Africa specialized in real estate matters and conveyancing and can guide you each step of the way during the entire purchase process.

Quick Facts
Foreigners can buy property in South Africa (Yes/No)	Yes
Types of properties for purchase	Houses, villas, apartments, offices, retail space, etc.
Real estate agent use	Not mandatory, but helpful
Real estate agent fees in South Africa (approx.)	Can start at 5%
Land ownership for foreign nationals in South Africa	Yes, although this can be subject to conditions.
Deed registration	Yes
Deed registration agency	The Deeds Office
Provisional agreement	Can be used
Initial deposit	It varies and can be between 10% and 20% of the home price in some cases.
Property due diligence	Always recommended
Mandatory representation by a lawyer in South Africa	Not mandatory, but highly advisable.
Important taxes for real estate transactions	The transfer tax, at up to 13% on the purchase of immovable property (when no VAT applies).
Reasons to buy property in South Africa	A stable investment, options to rent the purchased property.
Assistance for individual buyers	Conveyancing, legal advice and assistance as needed.
Assistance for corporate buyers	Legal assistance with business and industrial real estate transactions, commercial property law specialist solutions, etc.

What are the main steps for buying a property in South Africa?

Foreigners have the same rights as citizens or residents to purchase property in South Africa. However, home ownership does not equal residency, and being the owner of a house in the country does not mean that a foreign national will be granted automatic residency. For this purpose, he or she will need to apply for a residence permit in South Africa.

The main steps to follow for those who buy property in South Africa are the following:

Determine your budget: this is a key step, and one that will influence your final decision;
Determine your financing options: find out your credit score, as well as your options for mortgaging;
Research the available properties: this is done according to personal criteria, such as price, number of rooms, location, and many others;
Verify the property: once you have chosen your ideal house, real estate due diligence is an essential step;
Sign the documents: these will include the sale/purchase agreement, as well as any other documents needed to transfer the property to your name; the title deed transfer is done with the Deeds Office and our South African lawyers can give you more details.

Buying a property in South Africa as a foreigner is also possible through a power of attorney for this special purpose. In this case, a lawyer from our team will act on your behalf, and in your best interests, throughout the transaction process.

We invite you to watch a video about property purchase in South Africa:

What are the property types in South Africa?

The buyers can choose from several types of properties according to their own purpose as well as budget. Some of the most popular choices available are:

residential real estate (houses, apartments, holiday homes etc.);
commercial properties;
industrial space;
agricultural land;
vacant land for future development etc.

What documents are needed to buy property in South Africa?

The list of documents can vary depending on whether the buyer is a local resident, a foreign individual or a company.

Commonly requested documents include:

a valid ID document or passport;
proof of residential address;
proof of marital status;
proof of funds or mortgage approval;
signed offer to purchase;
relevant tax registration details;
company registration documents, if the buyer is a legal entity;
power of attorney, if the purchase is handled through a representative.

Our law firm in South Africa assists local and foreign natural and legal persons interested in purchasing properties. Moreover, we are also able to provide legal guidance for real estate developers interested in knowing more about construction laws, and other legal aspects when developing their projects.

In the infographic below you will find the steps you need to follow in the process of buying a property in South Africa:

What legal checks should be made before buying property?

Before buying property in South Africa, the buyer should make sure that the property, the seller and the transaction documents are properly checked. You must pay attention to:

seller’s registered ownership;
title deed restrictions, servitudes or conditions;
existing mortgage bonds;
correct property description;
unpaid municipal rates, taxes or services;
required clearance certificates;
zoning and permitted land use;
approved building plans;
electrical, gas or other compliance certificates;
registration of the property practitioner;
clear terms in the Offer to Purchase;
unpaid levies, special levies or disputes, especially for sectional title properties.

Buying a home is a natural step for many foreign nationals who are interested in immigration to South Africa. As they make their relocation a permanent one, home ownership is a valuable investment.

If you are interested in purchasing a house in South Africa, please reach out to our lawyers for more information about the mandatory deed registration with the authorities. Our team can also help you open a company in South Africa.

Contact us if you want to know more about how to buy property in South Africa as a resident or as a foreign national.