Important Information for Buyers and Sellers

IMPORTANT INFORMATION FOR SELLERS AND PURCHASERS


For TRANSFERS make provision for extras such as post and petties, Rates Clearance Certificate or a Levy Clearance Certificate (+) R1 000

For BONDS make provison for extras such as post and petties, Deeds Office fees and Bank initiation fees (R2 000 – R5 700)

Non-resident sellers should be aware that for sales of R2 000 000 (two million rand) and more a portion of the purchase price (currently 5 % for individuals; 7.5 % for companies and 10 % for trusts) will be paid to SARS on account of Capital Gains Tax. The seller may subsequently apply for a refund for any amount overpaid.

Once the conveyancer has applied to the seller’s financial institution to issue a bond cancellation instruction for the existing bond, the seller may no longer be able to access funds from the bond and will be required to continue making bond payments until registration.

The purchaser will be required to pay transfer duty as early as approximately 6 weeks prior to registration. Speak to the seller’s conveyancer as soon as possible after signing the Agreement of Sale to determine what date payment of transfer duty is required and to discuss bridging finance should this be necessary

Please ensure that your tax affairs are up to date as any unresolved issues with SARS could delay transfer

If a mortgage bond is not finally approved before the due date, the Agreement of Sale is no longer valid and binding on the parties.

All sellers should be advised that in most cases there will be Capital Gains Tax implications. Please contact one of our experts in this regard.

Once rates clearance figures have been requested a seller should not make any further payments directly to the local authority, Payments should only be made to the conveyancer on the conveyancers’ request, to avoid duplicate payments.

This article is courtesy of C & A Friedlander Attorneys.