TRANSFER DUTY

when is it not payable?


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Firstly, according to our law, transfer duty is payable to the Receiver of Revenue in terms of the Transfer Duty Act 40 of 1949.  It is important to note that the act also provides for exceptions when transfer duty would not be payable.

Transfer duty is payable when a transfer of property occurs. However, under certain circumstances a transaction may be exempt from transfer duty because another tax is payable.

In terms of section 9 of the Transfer Duty Act the following transactions do not attract the payment of transfer duty:
  1. Transactions between, or to, Government bodies
  2. Transfer of property for religious, charitable or educational institutions
  3. Transfer to a body that is acquiring property for a public hospital
  4. An heir who inherits property.  In this case, estate duty (another form of tax) becomes payable.
  5. A surviving spouse who acquires property from a deceased spouse or a divorced spouse acquiring from divorced spouse.
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LEGAL THOUGHT OF THE WEEK

SEQUESTRATING AFTER EXECUTION SALE: CAN PURCHASER DEMAND TRANSFER?


Our STBB Property Law Update Issue 11 reported on the recent South Gauteng High Court Ruling of Edkins v Registrar of Deeds Johannesburg and Others in terms of which it was ruled that the Sheriff may effect transfer even though the debtor, subsequent to the execution sale but before the transfer, published a notice to surrender his estate.

Deeds Registries and Courts have previously required transfer from the debtor’s trustee which in most cases delayed the transfer significantly.

Here's the full summary of the judgment.

The Cape Town Deeds Office requires, as a result of the above decision, an affidavit from the Sheriff confirming that the Sheriff was unaware of the sequestration or a notice to surrender that was published by the Debtor, at the time of the sale in execution.

A Deeds Office Circular to this effect will be issued in due course.