Donating a property?
Written by Smith Tabata Buchanan Boyes
If you are considering donating a property to a beneficiary, it may be good advice to heed the saying: ‘Nothing is certain but death and taxes.’ The reason is that a donation of immovable property triggers both transfer duty and donations tax! Transfer duty will be taxed in the hands of the recipient of the donation, and donations tax at…
Vehicle Sales & Transfer Duty
Written by Dr Johan Snyman
Underneath is our interpretation of buoyant vehicle sales figures and poor transfer duty paid figures. The latter reflects the poor state of the residential property industry. These divergent trends (i.e. positive in the case of vehicles sold, and negative in the case of the residential property market) suggest that consumers are buying vehicles, but not houses. According to banking economists, the…
Many Title Deeds contain restrictive conditions or personal servitudes (such as usufructs or pre-emptive rights) which have already lapsed. The Deeds Office insists that such lapsed conditions be removed from the Title Deed when the property is dealt with in any way, even when you register a further bond over the property. Be aware of this added requirement and ask…
In a more recent case it was held that the absence of any statutory approval for buildings constitutes a latent defect. The voetstoots clause ordinarily covers a latent defect, meaning that a seller would be protected by the voetstoots clause for unapproved building plans. It is important for buyers to take note that the smallest failure on their part to…
Declaring capital gain or capital loss when selling immovable property
Written by Smith Tabata Buchanan Boyes
Even as a non-resident, you are obligated to declare the Capital Gain or Capital Loss when selling immovable property in South Africa. Where the seller of immovable property is a non-resident and the gross sales price exceeds R2 million, the purchaser has an obligation to withhold 5% of the purchase price from the seller (if a natural person)*, and pay…
The deeds office notes a caveat against a property as a reminder to itself and interested parties that some other action is required when next the property is dealt with in any way.For example, sometimes a property is re-surveyed and the property details may change as a result. The Surveyor General will then note a caveat against the property so…
TAX Amnesty for Property owners.
Written by Allan White
The “tax amnesty” introduced by SARS (originally Para 51 and now Para 51A of the 8th Schedule of the Income Tax Act) which allows an “amnesty” to homeowners to transfer properties in which they “ordinarily resided” from a CC, Company or Trust, free of transfer duty, capital gains tax and secondary tax on companies, has been written about extensively. Although…
A landlord has a tacit hypothec over a tenant’s movable property, should the tenant fail to pay any rental that is due. However, the hypothec is only enforceable if the landlord has a court order to this effect! Thus, prior to obtaining a court order, the tenant may remove his goods from the premises himself and the hypothec will fall…
Where a property is subject to a condition which stipulates that it may not be sold, alienated or transferred without the consent of the Home Owners Association of which the owner of the property is a member, the Deeds Office will not register the transfer without the said consent being lodged. Some Home Owners Associations are not active and do…
Whose Common is it anyway?
Written by Melanie Coetzee
Whose Common is it anyway? We are often approached by members of the public wanting information on common open spaces in specific residential or commercial areas. Questions mostly relate to ownership, maintenance and safety and although we see these areas all around us in our cities, we are not often aware of the legislative rules and regulations attached thereto.…
Homeowners insurance – Why do we need it? When you apply for a home loan to purchase a property you will find that the bank will impose the condition that you take out homeowners’ insurance cover for the structure. Why do the banks insist on this cover and why is it so important to understand your policy? WHAT IS IT?…
Stats SA Building Statistics July 2011 Vehicle sales show a V-shaped recovery, with a U-shaped revival in the case of residential buildings. The trend in the cyclical movements correspond closely; vehicle sales are about 16% higher than a year ago, with residential only 2% higher.…
Transfer Duty
Written by Dr Johan Snyman
Transfer Duty July 2011 In nominal terms, May 2011 data were better than in April 2011, but the property market is still suffering from lack of mortgage finance from banks. In real terms, the trend is virtually sideways. The annual percentage change is nudging the…
Cement Sales
Written by Dr Johan Snyman
Cement Sales July 2011 Cement sales were about 10% higher in June 2011 than in May 2011. The shape of the trend suggests that a trough in the cycle is at hand. The year-on-year percentage change was zero in June 2011, suggesting that cement sales could grow…