New legal requirements

New legal requirements

Having recently attended a legal update, I think it would be in your interest to have this info passed onto you and thereby facilitate a smooth and easy transfer should you be selling or buying in the future.

As a result of FICA regulations, SARS now requires a considerable amount of information before it will supply a transfer duty receipt, and the estate agent and attorney need to provide these details upfront. Forms TD1 and TD2 must be completed by the seller and purchaser respectively. Besides the standard name, address and I.D. number, both forms request income tax numbers of the parties involved and should the person not be registered for income tax, their annual income from all sources must be stated.

If the person is a VAT vendor the registration number must be supplied.

Of particular interest for the purchaser, is the questions relating to the usage of the property. This will involve some consideration by the purchaser, as the receiver wants to know if the property will be your primary residence or another residence, whether it will be used commercially or for industrial purposes etc. Likewise, the seller must declare whether the property was his primary residence, used for business purposes, let to tenants etc.

Even estate agents are not exempt from SARS and we must complete a TD7 form with every transaction!

Another bit of information gleaned from the update, was clarification on the electrical compliance certificate. Up until recently I have battled to get a straight answer from anyone in this regard. Most people are aware a certificate of electrical compliance must be provided before a property can be registered in the Deeds Office. What is not commonly know, is an original certificate remains valid for a period of 2 years and can be passed from seller to buyer during this time, provided no electrical changes have been made in the property.