26 Oct 2012
From October 2012, a new system introduced by the South African Revenue Service (SARS) means that the transfer of any property will be subject to delay unless all the parties involved – including the estate agency – have their tax affairs in order.
This is according to Berry Everitt, MD of the Chas Everitt International property group, who says a new transfer duty e-filing system is being introduced that requires the transferring attorney to fill in not only the tax numbers of the property buyer and seller, but also that of any estate agency involved - and to provide proof that those tax numbers are valid.
“Clearly, SARS wants to ensure that the tax returns and payments of everyone involved in a property sale are up to date.”
He says the tax authority has for some time now been checking to see that property sellers have paid any and all tax amounts owing before it will issue the transfer duty receipts required for transfers to be finalised.
“It also has the power to instruct a transferring attorney to first pay any amount to tax that is outstanding before a property seller can receive the remainder of the proceeds of the sale.”
Similarly, Everitt says, SARS has taken a dim view of home buyers who are trying to acquire a property while they have any tax debts outstanding – “and now, it seems, transfers could also be delayed or even stopped if the estate agency involved has not paid all its taxes – or unless it makes an arrangement to pay all or some of the commission due from the sale towards its tax debt."
He says this is another reason for home sellers to deal only with reputable agencies whose financial affairs are absolutely in order, unless they want to risk having their transactions stalled by the Receiver of Revenue and risk the financial damage that could entail.
House for sale in Amandasig, Akasia, Gauteng R 525 000
House for sale in Lentegeur, Mitchells Plain, Western Cape R 300 000
Vacant Land / Plot for sale in Hartbeespoort, Hartbeespoort, North West R 625 000
House for sale in Hectorspruit, Hectorspruit, Mpumalanga R 1 200 000
Vacant Land / Plot for sale in Rayton, Rayton, Gauteng R 110 000
House for sale in Die Heuwel, Witbank, Mpumalanga R 1 280 000
House for sale in Pecanwood Estate, Hartbeespoort, North West R 6 500 000
House for sale in Amandasig, Akasia, Gauteng R 770 000
House for sale in Amandasig, Akasia, Gauteng R 720 000
Townhouse for sale in Sedgefield, Sedgefield, Western Cape R 880 000
If you are using Internet Explorer 8 or higher, please verify that your Internet Explorer compatibility view settings are not enabled.
For the best browsing experience update to the latest Version of Internet Explorer or try out Google Chrome or Mozilla Firefox.
Please contact our Customer Service Centre for further assistance. Tel. +27 (0)861 111 724