Most sale agreements relating to transfers of immovable property are prepared by Estate Agents. The latter’s profession is undergoing some remarkable changes and shake-ups, as anyone who has been following the “Wendy Mechanik” saga and who has been watching the EAAB website will know. Agents have to do their “RPL’s” to qualify for their NQF4 and, in the case of principals, NQF5. The Financial Intelligence Centre is doing spot checks, so I am told, to establish compliance with the FIC Act. And so on.

It becomes even more important that sale agreements are completed accurately and completely. Although the Alienation of Land Act simply requires the “deed of alienation” to be in writing and signed by the parties (or their authorized representatives), this does not really help us when we need to have these deeds of alienation valid (also) to comply with the FIC Act, and, more particularly, from a conveyancing point of view, for SARS when it comes to transfer duty.

So, to mention two examples of “troublesome” sale agreements:

1. When the purchaser purchased the property, she was single. But then she married, in the UK. The sale agreement only has her name on it as the Seller. But no, says SARS, the husband must now also feature on the sale. Yes, they are correct. The Sale agreement must be signed by the husband, not as a Seller, but “in assistance” to his wife’s signature.
2. Another one which I saw today, has the purchase price clearly indicated in figures as R1,625,000.00 but then in words, it states the purchase price as “One million six hundred and Two –Five Thousand” Rand. I am tempted to predict that SARS will raise a query. This was one of those cases where the purchase price, as so often happens during negotiations, gets changed a few times as the document goes backward and forward from Seller to Purchaser.

Regards
Sieg

[I am now blogging this diary: see http://aconveyancersdiary.blogspot.com/ ]