DEED OF SALE

A written agreement must be drafted and signed. A verbal sale agreement in respect of immovable property is unenforceable and void in South Africa. The following are some important clauses to be borne in mind:

DONATIONS TAX

Donations Tax is payable by any South African resident. The donations tax provisions do not apply to non-residents even if they donate South African assets. Donations tax is payable on the value of any gratuitous disposal of property (including the disposal of property for inadequate consideration) and the renunciation of rights.

ELECTRONIC DEEDS REGISTRATION SYSTEMS ACT

The Electronic Deeds Registration Systems Act (19 of 2019), was signed into law on the 19 September 2019, and published in the Government Gazette on 3 October 2019, and will come into operation on a date fixed by the President by proclamation in the Gazette (who may set different dates for the coming into operation of any or certain provisions of this Act for the different deeds registries). The Act aims to facilitate the development of an Electronic Deeds Registration System, known as e-DRS – which will enable the electronic processing, preparation, lodgement and registration of deeds and documents by conveyancers and the Registrar of Deeds over the internet.

ESTATE DUTY

The general rule is that if the taxpayer is ordinarily resident in the Republic at the time of death, all of his assets (including deemed property), wherever they are situated, will be included in the gross value of his estate for the determination of duty payable thereon. Estate duty is levied at 20% on the first R30 million of the dutiable estate. Estate duty will be levied at 25% on the dutiable estate in excess of R30 million. Estate duty is levied on the South African property of non-residents.

MORTGAGE BOND REPAYMENT FACTORS

The table gives a monthly repayment per R1,000 of a loan with an interest rate ranging between 8% and 25% p.a, over a period of 20, 25 or 30 years. For example, if the loan is R100 000 at an interest rate of 10% p.a, to be repaid over 20 years, the monthly repayment is R100 000 divided by R1,000 × 9.65 which is R965. Monthly repayments of approximately R965 will be required to liquidate capital and interest on a bond of R100 000.

PROPERTY PRACTITIONERS ACT

The Property Practitioners Act (22 of 2019) aims to regulate all property practitioners (not just estate agents), including estate agents and agencies, property brokers, home inspectors, providers of bridging finance, bond brokers, marketers, auctioneers, property managers, sellers of time share, developers, rental agents, home owner associations (where a service is provided as intermediary primarily to sell/lease property in that home owner’s association), digital portals that publicly exhibit properties, and employees of attorneys who act as estate agents. The Act specifically excludes a person who does not carry out any of these functions in the ordinary course of business, and a natural person who sells their own property (even if it is in the ordinary course of business), as well as attorneys, candidate attorneys and the Sheriffs of the Court. The Act applies to the marketing, promotion, managing, sale, letting, financing and purchase of immovable property. Some of its…

PROTECTION OF PERSONAL INFORMATION ACT

The Protection of Personal Information Act (4 of 2013), otherwise known as POPIA, promotes the protection of personal information by public and private bodies.

REGULATIONS FOR NEW BUILDINGS AND ENERGY USAGE

The Energy Efficiency Regulations for energy usage in buildings provide that all new buildings and building extensions in South Africa must conform to the regulations on energy conservation, including homes, industrial buildings, hotels and schools. Building plans will not be approved without compliance, and Inspectors are required to confirm same, specifically energy usage requirements. No compliance – no Occupancy Certificate.

RENTAL HOUSING ACT

The Rental Housing Act (50 of 1999), as amended, aims to regulate the relationship between tenants and landlords of residential property (utilised for dwelling purposes) in South Africa – by setting out general requirements relating to leases, laying down general principles and governing conflict resolution. The Rental Housing Tribunal’s function is to ensure that unfair practices between landlords and tenants are eliminated and hence it interprets both the Act and the Procedural and Unfair Practice Regulations, where applicable, in its deliberations. The service is free to both tenants and landlords. A lease will be deemed to include a number of terms, which cannot be waived by either party, some of which are listed below:

SALE OF PROPERTY TIMELINE

While the transfer process follows a series of successive stages, the time period involved varies considerably. Here are some guidelines: