PURCHASERS - DID YOU KNOW...

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When buying property, especially if you are a first time homeowner, the entire process may seem daunting. You will have some questions, your estate agent and the transferring attorneys are there to help you every step of the way.

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The Offer to Purchase which the seller and the purchaser has signed will stipulate each party's obligations and it is therefore necessary to make sure that the contents of the contract is understood. 

 

It is of utmost importance that attention is given to the clause reflecting the purchase price, deposit and bond approval (if applicable) as you are given a certain amount of time in which the deposit is to be paid and the bond grant is to be obtained. If the deadline is not met on time, you will be in breach thereof and the seller is entitled to then cancel the agreement. If agreed thereto between the parties, an addendum can be drawn up and signed providing additional time should it be required.

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Further attention should be paid to the Occupation Date as, if agreed upon between the parties, the purchaser will be liable for occupational rent to the seller should occupation be given before the property has been registered.

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TRANSFER DUTY

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Transfer Duty is a tax levied in terms of the Transfer Duty Act, No. 40 of 1949 on the value of any property which is acquired by way of a transaction or otherwise.

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Transfer duty can best be described as a tax payable by the purchaser of a property to the South African Revenue Service (SARS) for purchasing the property. Transfer duty is calculated on the fair value of the property which is usually the purchase price of the property, in most transactions

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Properties acquired for less than R750 000.00 is exempt from transfer duty.

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