   |
 |
|
 |
|
|
Work out those figures!The costs payable by the purchaser in acquiring property are as
follows: If the purchaser is a natural person and registers the property in his own name, the transfer duty is calculated on the gross purchase price of the property (please use our calculators to establish figures relevant to your transaction as determined by the SA Revenue Services. (They are not negotiable) While it is seldom the case, should the seller be a registered vendor for Value Added Tax purposes, VAT at the rate of 14% will be built into the purchase price by the seller and transfer duty will be exempt for the purchaser. The purchaser also has to pay transfer costs directly to the seller's conveyancer for passing transfer and attending to the formalities. When purchasing a property, a purchaser is normally required to pay the purchase price and costs in three stages: First, 10% of the gross purchase price is normally payable as a deposit to
the real estate company on signature of the deed of sale by both parties. Secondly, the balance of the purchase price is lodged with the conveyancer when called for (often about a month prior to transfer in the case of a non-resident transaction but about two weeks before transfer for a locally financed transaction.). Thirdly, the transfer costs (legal and registration costs) are payable about four weeks prior to the date of transfer; this must be done prior to the transfer of the property, so that lodgement can be effected in the deeds registry of the relevant transfer documents for examination and the balance of the purchase price plus any occupational rental and share of the current years rates and taxes (levied by the local authority) will be payable against registration of transfer. The cost payable by the seller is the estate agents' commission, as well as certain inspections on the property for notifiable beetle and electrical safety. Commission is determined between the seller and the agent. It is negotiable and is usually between 6% and 7%but varies in different regions of the country, and is charged on the gross selling price. These commissions attract Value Added Tax (VAT) of 14%, also payable by the seller. At present, there is no restriction contained in the exchange control regulations against non-residents introducing capital into South Africa for the purpose of purchasing property. Should a non-resident decide to dis-invest and sell the property at a later stage, the full proceeds of the sale can be freely transferred out of the country. This is possible as long as non-resident status is retained. Local banks recommend that when introducing funds for this purpose the bank must be notified of the purpose for which the funds are being introduced so as to set up a record of their transfer from outside South Africa. It will facilitate the removal of such funds at a later stage if the party is to dis-invest, when the non-resident will merely be required to exhibit their deed of transfer for the property and the subsequent deed of sale for the re-sale. This should be proof of the amount originally introduced from outside South Africa and the amount realised on re-sale. Property or shares purchased by a non-resident must have the share certificates and / or title deeds endorsed "non-resident".
There are several ways in which non-residents bring money into South Africa to purchase property:
| ||||||||||||||||||||||||||||
|
