Property Ownership Flashcards
1
Q
Possible Payable Fees
A
- Conveyance
- Bond registration
- Transfer duty
- Inspection
- Comission
2
Q
Gains of Ownerships
A
- Prescription
- Expropriation
- Marriage in CoP
- Insolvency of registered owner
3
Q
Joint Ownership
A
- Owning undivided shares of the property
- Decisons relating to sale and lease must be unanimous
- Share not only profits, but costs of upkeep
- A joint owner may sell their undivided share of the property on the open market, provided there is no agreement prohibiting them from doing so
4
Q
Transfer of Ownership
A
- Each time a property is sold a new deed of transfer must be drawn up and registered in order to pass transfer of ownership to the purchaser
- To ensure security and certianty of the transfer
- Conveyancer, Transfer documents, Costs
5
Q
The Conveyancer
A
- Conveyancers are nominated by the seller
- Can be appointed by the estate agent
6
Q
Deeds of Registar
Transfer Documents
A
- Transfer duty/VAT receipt (Receiver of Revenue)
- Rates Clearance Certificate/Body Corporate Levy Clearance Certificate (BCLCC)
- Consent of Bondholer
- Ts&Cs of the title deed (additional, applicable clauses)
7
Q
Paying of Transfer Duty
A
- In terms of the Transfer Duty Act 40, transfer duty must be paid latest within six months after the acquisition date of the property
- Even if the transfer has not been registered within six months after the date of the sale, transfer duty must still be paid to avoid penalties
Fraud to try avoid it
8
Q
VAT
A
- VAT is payable by the seller of the property only if the seller is a vendor
- And the property is sold in the course or furtherance of the seller’s enterprise
- No tax is payable between vendors, value of VAT is zero rated
- No VAT for residential accomodation
- If paying VAT, then no payment for transfer of duty is due under certain conditions
If payable, must be added to the total selling price
