Increase in VAT: What rate should be charged in property transactions?
In the 2018 Budget Speech delivered by Finance Minister Malusi Gigaba on 21 February 2018, the standard rate of VAT was increased from 14% to 15%, effective from 1 April 2018. However, tax is never that simple. Even after 1 April 2018, there are circumstances where the applicable VAT rate will still be 14%. The […]
Planning your estate as newlyweds
For newlyweds, one of the most important tasks to attend to is estate planning. The estate planning will depend on what the couple wants and what form of marriage they are in. It is therefore important to keep the following in mind when planning the years ahead together. Marriage in community of property There is […]
Is the tenant or landlord responsible for the water leaks?
Questions, and sometimes disputes, often arise between landlords and tenants regarding where the responsibility lies with the maintenance of a property. The simple answer is that tenants can generally only be held responsible for repairs/replacement on the property if the damage was caused by the tenant’s actions, or items that have a short life span, […]
How do I cancel a lease?
What happens when a landlord or a tenant wants to cancel a lease? What rules and what legislation apply? What protection does the law provide? If you want to end your lease early, this can be done in situations where: the Consumer Protection Act or Rental Housing Act applies, or there’s a clause in the […]
Owning property without a will
If you die without a will, an administrator will have to be appointed to administer your estate which will be distributed according to the laws of intestate succession. As such, your assets may not be distributed as you would have wished. It also means that the process will be delayed and that there will be […]
Important steps for the transfer of property
The transfer process can take up to three months, sometimes longer. There are different steps involved in the transfer of a property, these include: 1. Instruction. A conveyancer receives the instruction to transfer the property. Communication. The conveyancer communicates with the various role-players involved in the transfer process, such as the seller, purchaser, transfer and […]
Capital gains tax and the sale of a property
Capital Gains Tax was introduced on 1 October 2001. Capital Gains Tax is payable on the profit a seller makes when disposing of his property. What is meant by Capital Gain? A person’s capital gain on an asset disposed of is the amount by which the proceeds exceed the base cost of that asset. What […]
Estate agents commission
Selling a home is one of the biggest financial decisions a person can make and an estate agent, to whom commission will be payable, is usually involved in this process. A problem that frequently occurs in practice and which is not easy to solve is whether an agent was in fact instrumental in bringing about […]
Fixtures and fittings
Many transfer attorneys have heard the question from a seller: “May I remove the stove or the curtain rails or the shelves or the..?” The most common dispute that arises between a seller and a purchaser is a dispute as to what is regarded as fixtures and fittings. The simple answer is that this would […]
Co-ownership of land
The word “co-ownership” in relation to land means that two or more persons own land simultaneously in undivided shares. A share in land does not represent, and may not be held to represent a defined portion of land. A co-owner who holds a share in land does not hold title to a defined piece of […]