Half Share Transfers

10/03/2025 - By Tiffany Mare

Frequently, relationships or circumstances between co-owners of immovable property change over time and a transfer is required to either transfer a half share to a third party or to the other existing half share owner. Unfortunately, it’s not as easy as just removing or substituting a name on the existing title deed. A half share transfer involves exactly the same processes as a normal transfer and more.

TRANSFER FEES
Transfer fees are calculated on the fair market value of the half share of the immovable property. For example, if the fair market value of the whole property were to be 2 million, the transfer fees would then be calculated on 1million.

RATES CLEARANCE CERTIFICATE
A rates clearance certificate is still required for a half share transfer. This means that the existing half share owner will need to make payment of the rates clearance figures received from the council. This will include all arrears as well as estimated figures for four months in advance.

TRANSFER DUTY
If the half share transfer relates to a Divorce between or death of one of the spouses who owns the property, no transfer duty is payable. If the half share transfer relates to a sale, transfer duty is payable on the half share valuation. SARS may require two independent estate agents valuations to confirm the fair market value of the property. Transfer duty is then calculated on the fair market value of the whole property and then divided in half. This can be confirmed by viewing the transfer duty table on the SARS website.

IF THERE IS AN EXISTING BOND OVER THE PROPERTY

If there is an existing bond over the property, the mortgagor may;

• make payment into and cancel the existing mortgage bond over the property, or;
• register a new bond over the property whilst cancelling the existing bond;
• Alternatively, the one debtor/owner can be substituted as the sole debtor/mortgagor under the bond. This can be done by first applying to the banks to see if he/she qualifies to take over the whole bond. This is done in terms of a Section 57 application to which the bond holder will be required to consent thereto

A section 57 application would be the more cost-effective approach as the registration costs would be 25% less than the fees to register a whole new mortgage bond.