CONVEYANCING ROLE PLAYERS (III)

CONVEYANCING ROLE PLAYERS | THE BODY CORPORATE AND MANAGING AGENTS

(MF ATTORNEYS)

In our last post we looked at the role of municipality in the transfer process.  This week we will look at the body corporate and managing agents in the transfer process.

THE BODY CORPORATE AND MANAGING AGENTS
Body corporates exist only in Sectional Title Schemes.  Their function is to ensure the effective running and maintenance of the scheme.  In certain instances, it is the managing agents who do this on behalf of the body corporate.

A sectional title unit cannot be transferred until a clearance certificate from the body corporate is obtained. This certifies that all levies are paid up and that no outstanding fees are due to the body corporate or managing agent. Where there is a managing agent in place the levy clearance certificate will be issued by this agen.

A common hurdle, when dealing with managing agents occurs when the managing agent changes its name, neglects to disclose this change and submits a certificate in the previous name.  In this instance, the Deeds Office will reject the matter call for proof of change of name and request a new levy clearance certificate.

CONVEYANCING ROLE PLAYERS (II)

CONVEYANCING ROLE PLAYERS | THE MUNICIPAL COUNCIL

(MF ATTORNEYS)

Last week we looked at the role that the South African Revenue Services (SARS) plays in the property transfer process.  This week we will look at the municipal council, their requirements and the potential challenges that occasionally occur in the transfer process.

The Municipal Council

Dealing with the local municipality is always infamously riddled with bureaucratic hurdles, hoops and challenges. In order to minimize the delay from this institution during the transfer process, certain firms have appointed internal office members to attend to the council on a daily basis in order to resolve issues when obtaining rates clearance figures, whilst other firms make use of rates consultants.  These extra measures have become a necessity due to the various challenges that Transferring Attorneys are experiencing when attempting to obtain rates clearance certificates. The costs involved for these are usually for the seller’s account as the seller is the party responsible for obtaining rates figures and effecting payment of the rates amount, four months in advance.

Whenever a property is sold, the municipality needs to confirm that all the rates have been paid in full.

CONVEYANCING ROLE PLAYERS (I)

CONVEYANCING ROLE PLAYERS | SARS

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.