transfer duty

L7. Basic Terms in Property Sales

1. Immovable property Is land, whether unimproved (i.e. vacant) or improved (i.e land with permanent improvements such as a house). A piece of land and all the permanent improvements constitute a single entity, namely one immovable property. This means that the permanent improvements cannot be sold independently of the land. It is also not possible to transfer ownership in portions of a building to...

L17. SARS and VAT

Problems with zero-rating SARS has reviewed its approach to the payment of transfer duty or VAT on property sales. It has tightened up many of its requirements and it is important for all role-players in the industry to know what these are. All of these new restrictions apply to VAT-related sales, whether they are zero-rated or normal VAT payment transactions. SARS has issued a directive in terms of...

M1. Transfer Costs

1. Deposit The deposit is an upfront payment, usually between 10% and 20% of the purchase price but varies from purchaser to purchaser.  The transferring attorney is obliged to open up a separate trust account for each transaction at the highest possible interest rate. 2. Transfer Fees – payable by the Purchaser Is a general term that is made up of the transferring attorney costs and transfer...

M3. Property Taxes

Transfer Duty Transfer Duty will be the most common tax payable on property transactions. It is payable on the purchase price of the property and must be paid within 6 months after the date of sale of the property. Failure to pay the Transfer Duty within the 6 months period leads to penalties being levied on Transfer Duty Value Added Tax (VAT) In the case of a sale of Fixed Property, VAT is...

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