Often buyers want to change their identification, or they have to make changes to make the sale valid.
Quite often the director of a company will
Changing a contract to validate it occurs when it turns out after concluding
the sale that:
Care is needed here – in the last case SARS can interpret the addition of another purchaser as an actual sale from the original buyers of a share to the extra purchaser, attracting separate transfer duty. It may be a long way
around, but it is always safer to draw a new contract rather than making changes to the existing sale agreement.
The key issue here, however, is when the buyer wants to substitute someone else as the Purchaser, usually a different company or a company in place of himself. Here trouble can arise if deposits have already been paid. Make sure that either you or the conveyancer provides that the deposit
paid by the original purchaser is to be used for the new company’s
An addendum will be necessary, and it must be signed by both the original and the new Purchaser.
Also, rather draw a new contract of sale and declare the first officially cancelled, or double-transfer duty may again become payable. What if, after finalizing the transfer, the original Purchaser comes along and says ‘I want my R500 00 deposit back. You had no right to use it for the new purchaser’?