TRANSFER AND BOND COSTS: TRANSFER DUTY EXEMPTIONS

by Taryn Davies Stevens • 1 MIN • 185 Words

There are a number of cases where transfer duty will not be payable. The occasions that are likely to come up in normal property sales are:

Where the transferee is a religious, charitable or educational institution and the property is zoned and purchased exclusively for one of these purposes (Section 9 (1)(c) of the Transfer Duty Act);
Where the property has been inherited out of a deceased estate (Section 9(1)(e) of the Transfer Duty Act) or has been awarded to a spouse by the other in a settlement agreement linked to their divorce;
Where the Seller is a vendor in terms of the Value Added Tax Act of 1991. In such a case the Conveyancer files a declaration by the Seller that VAT has been or will be paid on the transaction, or that the transaction qualifies for zero-rated tax (Section 9 (15)(a)).
Where the property is held under a right of leasehold.
Where the purchase price is less than the minimum prescribed for transfer duty purposes. This threshold has been regularly increased in recent years.

CREDIT:

Property Law Publications

John Gilchrist

082 904 1300

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