August 15, 2023

Avoid the long-term implications of skipping a bond repayment

Are you feeling the financial pinch? You’re not alone. Many South Africans are finding it increasingly difficult to meet their credit obligations. The cost of living is on the rise, disposable incomes are shrinking, and servicing debt has become a significant challenge. Homeowners are feeling the strain too, with financial institutions noting a surge in foreclosures. As the economic outlook appears to be in a state of flux, more consumers are struggling to honour their bond repayments and servicing their debt. In such times of financial stress, the thought of defaulting on a bond payment may sneak into the minds […]
June 13, 2023

Navigating the amendments to the Trust Property Control Act: Beneficial ownerships in South Africa

The Trust Property Control Act, a key piece of legislation governing South Africa’s trusts, recently underwent a substantial transformation with the passage of the General Laws (Anti-Money Laundering and Combating Terrorism Financing) Amendment Act. This regulatory overhaul was aimed at strengthening the country’s trust governance, a direct response to its greylisting status, and has significant implications for trustees, especially those managing family trusts. Expansion of the term “beneficial owner” One of the primary alterations to the act is the expansion of the term “beneficial owner”. This term now encapsulates individuals with either direct or indirect ownership of the trust property, […]
January 17, 2019

NON-RESIDENT SELLERS OF IMMOVABLE PROPERTY

Section 35A of the Income Tax Act[1] came into effect on 1 September 2007 and sets out the capital gains tax consequences of the sale of immovable property situated in South Africa in instances where the seller is not a South African tax resident. In terms of these provisions, the purchaser of the immovable property is obliged to withhold the specified amount of tax from the purchase price payable, provided that the property is disposed of for an amount in excess of R2 million. The amount to be withheld in these circumstances is 7.5% of the purchase price where the […]
June 7, 2016

A NEW TWIST IN THE QUESTION: IS THE BUYER OF AN IMMOVABLE PROPERTY RESPONSIBLE FOR PAYING THE SELLER’S OUTSTANDING MUNICIPAL ACCOUNT?

Municipalities are required to issue rates clearance certificates without which a property cannot be transferred from a seller to a buyer. The rates clearance certificate certifies that outstanding debts owing to a municipality up to the date of transfer have been settled. Property buyers relied on these certificates as proof that all previous debt on the property have been fully settled and that transfer of the property to the buyer could proceed. However, in some cases rates clearance certificates are issued while all charges for the period before the transfer date of a property to a new owner are not […]
May 11, 2016

‘N NUWE KINKEL IN DIE VRAAG: IS DIE KOPER VAN VASTE EIENDOM VERANTWOORDELIK VIR DIE VEREFFENING VAN DIE VERKOPER SE UITSTAANDE MUNISIPALE REKENING?

Daar word van munisipaliteite verwag om munisipale uitklaringsertifikate uit te reik waarsonder eiendom nie van die verkoper na die koper oorgedra kan word nie. Die uitklaringsertifikate sertifiseer dat alle uitstaande bedrae verskuldig aan die Munisipaliteit tot op die datum van oordrag vereffen is. Kopers van eiendomme maak staat op hierdie sertifikate as bewys dat alle vorige skuld op die eiendom ten volle betaal is en dat oordrag van die eiendom na die koper mag voortgaan. In sommige gevalle is die uitklaringsertifikate egter reeds uitgereik, alhoewel alle skulde vir die tydperk voor die oordragdatum van eiendom aan ‘n nuwe eienaar nog […]
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