CONVEYANCING ROLE PLAYERS | SARS
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| Conveyancing Role Players - another piece in the puzzle... |
(MF LEGAL)
There are various role players in the transfer process, namely; SARS, the council, the Body Corporate (sectional title) or a Home Owners Association (cluster), bond cancellation attorneys and bond attorneys, and their respective clients being the banks that they service. Today we will look at the role that SARS plays and its requirements as well as potential challenges that can play a role in the transfer process.
South African Revenue Services (SARS)
SARS is an important role player because they issue the transfer duty receipt or transfer duty exemption certificate. Without this document the matter cannot be lodged in the deeds office.
SARS requires the offer to purchase in order to confirm the purchase price and to ensure that the amount of duty payable is correct. They also check the tax history of the seller, purchaser and agent/agency involved. If any one of these parties’ tax is not in order, SARS can refuse to grant a transfer duty receipt or exemption, and thereby delay the transfer.
It is of paramount importance that a seller and purchaser’s tax requirements are up-to-date and paid in full compliance with SARS’s requirements. We strongly recommend that the mandate agent specifically requests such confirmation from the seller and purchaser and, if there is any discrepancy in this regard, convey that to the transferring attorneys immediately.
Where a seller and purchaser are related to each other, the transferring attorney has a duty to notify SARS of this when applying for a transfer duty receipt or exemption certificate. SARS will then request three valuations of the property and use the average of these valuations to determine if transfer duty is payable and, if so, on which amount.
If you need help or advice on anything within the real estate sector, contact us at Rivigan Property Group for more information.
