Our attorneys provide an extensive range of services, including property transfers, bond cancellations, and registrations for clients in Cape Town.
We briefly look at factors that can affect the progress of property transfers, helping clients and prospective clients to understand the process better and to take steps in avoiding common pitfalls in property selling and buying.
Tax Clearance Certificate
A buyer sees a suitable investment property in Cape Town and makes a purchase offer. The seller accepts and a legally binding sale contract is in place. However, the buyer is unable to secure a bond because he has outstanding taxes. The buyer takes the necessary steps to get taxes up to date and the sale goes on. However, valuable time has been lost and the transfer is thus delayed.
The same, unfortunately, can happen on the seller’s side. Everything looks good on paper and the seller is hopeful for a successful transfer of the property. However, the seller’s tax affairs are not up to date and the seller is behind on property taxes. In this instance, the attorneys cannot complete the transfer process until the seller has paid the taxes due.
It is possible to include a clause to protect against delays as the result of one party’s tax obligations still to be met. We recommend speaking to our property attorneys in Johannesburg and Cape Town to help with the inclusion of such a clause in property sale agreements.
Other causes for delays include, but are not limited to:
- Insufficient information and documents for FICA of the buyer or seller.
- The buyer or seller not signing required documents at the stipulated and arranged times.
- Failure by the buyer to obtain a loan within the original allowable period.
- Failure by the buyer to pay required costs, such as bond registration and transfer costs in a timely manner.
- Delays in issuing clearance certificates by the municipality or the body corporate.
- Delays in the provision of the required and valid electrical compliance certificate, gas compliance certificate, or plumbing certificate.
- Delay by the seller of a non-bonded property in providing the title deed of the property.
To prevent delays in property transfer, it is essential to get all clearance certificates, compliance certificates, and FICA-required documents in place as soon as possible. Speak to our team of property transfer attorneys to help you ensure seamless property transfers in Johannesburg and Cape Town.
Note: this article is for information purposes only and does not constitute legal advice. You are advised to consult with us before using/relying on this information. Information is relevant to the date of publishing.