AMENDMENT OF SECTIONAL TITLES ACT
The Sectional Titles Act has recently been amended. Some of the managing agents are interpreting the amendment to mean that the Seller has to pay all levies which are due up to the financial year end. In effect therefore the Seller has to pay the monthly levies in advance for a period of up to […]
AMENDMENT OF SECTION 47 OF THE SECTIONAL TITLES ACT 95 OF 1986
We are pleased to advise that a new protection mechanism has recently come into effect which provides protection for sectional title owners. Prior to the amendment, members of body corporates could be held personally liable for body corporate bad debt, but since the amendment this is no longer the case. It is therefore no longer […]
VAT OR TRANSFER DUTY?
Very often the question arises as to whether the purchaser must pay transfer duty on a particular transaction or whether there is no transfer duty payable as the transaction is in fact a VAT transaction. This question can arise where the seller is registered for VAT but the purchaser is not or the seller is […]
AMENDMENT TO TRANSFER DUTY ACT
Exemption of transfer duty when taking transfer after divorce EFFECTIVE 25 JULY 2006 Please note that from 25 July 2006 a surviving or divorced spouse who acquires the sole ownership in the whole or any portion of the property registered in the name of his/her deceased or divorced spouse where that property or portion is […]
DEATH AND TAXES ARE CERTAIN
The Receiver of Revenue will now do a risk analysis regarding outstanding taxes on both the transferor and the transferee on all transfer transactions. If there are any taxes outstanding by either of the parties, the Receiver will not issue the relevant transfer duty receipt until the taxes have been paid or an arrangement for […]
FOUR POSSIBLE METHODS FOR CALCULATIONS FOR CAPITAL GAINS TAX
A) For properties acquired at any time (i.e. before or after the 1st of October 2001):- The normal method The capital gains tax is calculated on the difference between the price for which the property is eventually sold and the purchase price which was initially paid for the property. In addition transfer costs, estate agent’s […]
BRIEF GUIDE TO CAPITAL GAINS TAX
This brief guide is intended to outline in very broad and brief terms, the key principles that form part of Capital Gains Tax legislation in South Africa relating to immovable property.
NEW COURT CASE: NEW PROPERTY OWNERS ARE NOT LIABLE FOR OLD RATES AND TAXES ACCOUNTS
As you are aware the judgment in the case of City of Tshwane v Mathabathe has led to the Municipalities seizing upon the opportunity to demand payment of rates and taxes and other debts not incurred by the new owner but by other persons prior to the new owner taking transfer of the property. This […]
NATIONAL ENVIRONMENTAL MANAGEMENT: BIODIVERSITY ACT (ACT 10 OF 2004)
The National Environmental Management: Biodiversity Act 2004 (Act No 10 of 2004) (The “Act”) provides for the management and conservation of South Africa’s biodiversity and the establishment of a National Biodiversity Institute for the implementation of the Act. In terms of Section 70(1) of the Act, the Minister must publish a national list, and the […]
INSTALMENT SALE AGREEMENTS CHAPTER II OF THE ALIENATION OF LAND ACT, 1981
NOTE! IT IS STRONGLY ADVISED THAT YOU CONTACT AN ATTORNEY OR CONVEYANCER SPECIALISING IN THE SALE OF IMMOVABLE PROPERTY AND RELATED TRANSACTIONS SUCH AS DYKES VAN HEERDEN INCORPORATED SITUATED IN YOUR AREA, FOR ASSISTANCE AND ADVICE REGARDING EACH AND EVERY INSTALMENT SALE AGREEMENT CONSIDERRED BY PROSPECTIVE CLIENTS AS THE INFORMATION CONTAINED HEREIN IS INTENDED AS […]
FRACTIONAL OWNERSHIP
Fractional Ownership based on the ownership of undivided shares in a property as opposed to shares in a company or member’s interest in a CC (which may be in contravention of the Share Blocks Act) can be bonded in the Deeds Office, as the share in the property is a registered real right for which […]
WITHHOLDING OF FUNDS PAYABLE TO NON-RESIDENTS
Since the 1st of September 2007 it is imperative that an estate agent notify the conveyancer that the seller is a non-resident otherwise the agent can forfeit his commission to SARS. Download the pdf document to read the full article.
NO NEED TO PANIC
There have been certain articles recently which have stated that South Africa intends to only allow foreigners to purchase property on a 99 year lease. These reports are not all together accurate. All that has happened is that the relevant minister has stated in parliament that one should investigate why the prices of properties in […]
FINANCIAL INTELLIGENCE CENTRE ACT NO 38 OF 2001
The Financial Intelligence Centre Act (hereinafter referred to as “FICA”) was passed by Parliament in December 2001 and is being promulgated in a phased approach. FICA effectively establishes a partnership between the private and the public sector to assist in the identification of proceeds of unlawful activities thereby combating money laundering activities. In terms of […]
AMENDMENT OF THE FINANCIAL CENTRE INTELLIGENCE CENTRE ACT
The Financial Centre Intelligence Centre (hereinafter referred to as “the Centre”) is in the process of enhancing its operating systems in order to optimize its services. It is now a requirement that due to an upgrade of the Centre’s website, estate agencies (indeed all accountable institutions) are now required to use the following new forms […]
THE NATIONAL CREDIT ACT AND BOND CLAUSES
The question of amendments to the bond clause as a result of the passing of the National Credit Act has been the subject of much discussion. Most contracts contain a clause which provides that the agreement is subject to the suspensive condition that the purchaser is able to raise a loan upon the security of […]
DEFAULT AND JUDGMENTS AMNESTY
In terms of the National Credit Act amnesty will be granted in respect of all defaults (that is bad payment records) listed before the 1st of September 2006 which are for an amount of R499.99 or less. These amounts will be removed by the 1st of June 2007. In respect of judgments granted against a […]
DEBT COLLECTORS ACT, 1998
Some lease agreements contain certain terms regarding the levy of collection costs for either late or arrear payments that may not be recoverable in terms of the Debt Collectors Act, 1998 (hereinafter referred to as the act). The Debt Collectors Act prohibits a person or entity from acting as a debt collector unless registered as […]
STEPS TAKEN TO EFFECT TRANSFER OF A PROPERTY
Receive instructions to attend to the transfer. Request the original title deed, original mortgage bond and the cancellation figures from the existing bond holder. The cancellation figure is the amount which the existing bondholder requires to be paid before it will cancel the bond over the property. Request a statement from the local authority setting […]
STEPS TAKEN TO EFFECT TRANSFER OF A MORTGAGE BOND
Receive instructions from the Bank to attend to the Mortgage Bond. Determine ranking of the bond. Request the original title deed from the existing bond holder, a Flysheet (draft title deed) from the Attorneys attending to the registration of the transfer linked to the bond or from the client if the title deed is in […]
