Professional Documents
Culture Documents
2016 May - Part 1 & 2 MASTER
2016 May - Part 1 & 2 MASTER
May 2016
Part 1
Erinda Frantzen
CONVEYANCER
CONSENT
We the undersigned
1
You could also have drafted two documents: First the cancellation of the
cession (in accordance with prescribed Form MM) and thereafter the
cancellation of the bond itself (also drafted in accordance with prescribed
form MM).
As witnesses
1.
Best Bank Ltd
2
Central Bank Ltd
Question 2 - Model answer [15]
As an alternative, if the mortgagee and the cessionary did not both sign the
consent to cancellation, and the cessionary signed a consent to
cancellation of the cession, the following documents should be lodged:
1 Existing title deed
2 Existing bond B B67594/2012
3 Consent to cancellation of cession as security, signed by the
cessionary
4 Consent to cancellation of the bond signed by the mortgagee
2
When Form MM is drafted, it is not necessary to disclose particulars of
previous registration acts, save for previous cessions - RCR30/2012.
2.1 Prepared by me
Erinda Frantzen
CONVEYANCER
CESSION
I, the undersigned
ANNA BATES
IDENTITY NUMBER 351017 0014 08 4
UNMARRIED 3
the legal holder of the undermentioned bond
Number B67594/2012
passed by Phillip Bates
Identity number 651128 5086 08 2
Married out of community of property
in favour of Anna Bates
Identity number 351017 0014 08 4
Unmarried
for the amount of R120 000,00 (ONE HUNDRED AND TWENTY
THOUSAND RAND) plus an additional amount of
R12 000,00 (TWELVE THOUSAND RAND)
do hereby cede, assign and transfer all my right, title and interest in the
abovementioned bond to and in favour of -
BEST BANK LIMITED
REGISTRATION NUMBER 2000/123456/06
as security.
I declare that the full amount is still owing under the bond.
As witnesses
1
2
[10]
3
Or widow.
CONVEYANCER
Erinda Frantzen
I, the undersigned
Larry White
Identity Number 630101 6262 08 2
Married in community of property to Sarah White
Larry White
4
See Example 11 D-1 in Part 4 of the notes Self-study for Attorneys. You
would not have been penalized if the application is brought by both spouses.
CONVEYANCER
Gabriël Jacobus le Roux
5
Reference is made to her married surname in brackets to draw the link
between her current surname and the surname by which she is described in
the divorce court order
We declare that the value of the herein mentioned property is R3 000 000,00 (three
million rand).
Sybill Crawley
Tom Branson
Prepared by me,
CONVEYANCER
Gabriël Jacobus le Roux
I, the undersigned,
SYBILL CRAWLEY (previously Branson)
IDENTITY NUMBER 650825 0064 08 4
UNMARRIED
do hereby apply to the Registrar of Deeds at Cape Town for the issue, in terms of
section 37(1), to me of a Certificate of Registered Title in terms of Section 34(1) of
Act No. 47 of 1937 in respect of the following property:
S Crawley
Monique Oosthuizen
CONVEYANCER
POWER OF ATTORNEY 6
WHEREAS the said Transferors have truly and legally on 17 April 2014 sold their
respective interests in undermentioned property to the undermentioned transferee for
the amount of R800 000,00 (eight hundred thousand rand), subject to the conditions
as are more fully set out hereunder;
6
See Question 5 (Part 1) September 2013, Question 5 (Part 1) May 2008,
Question 6 (Part 1) May 2007 & Question 6 (Part 1) September 2007.
7
In terms of section 17(6) of the Deeds Registries Act the assistance of the
spouse is required of people where the legal consequences of their marriage
is governed by the laws of another country,. unless the Registrar deems it
unnecessary (in terms of the Deeds Registries Act or on any other grounds).
The community of property is however excluded by common law in respect
of a usufructuary. Therefor it is submitted that the assistance of the spouse
of the usufructuary is not necessary. You would not have been penalized if
you described John as duly assisted by his spouse.
As will appear from diagram S.G. No 321/2012 and held by Deed of Transfer
T4321/1996
Subject to the following conditions set out in the deed of sale dated 17 April 2014:
1 Subject to a right of pre-emption in favour of -
1 JIM COOK
IDENTITY NUMBER 750106 5050 08 8
UNMARRIED
2 JOHN COOK
IDENTITY NUMBER 451018 5092 001
MARRIED, WHICH MARRIAGE IS GOVERNED BY THE LAWS OF
ENGLAND
When first offering the herein mentioned property to the said transferors,
such offer is to remain open for at least 5 (five) days. Should the property at
any time be offered to a third party at a lower price than that offered to the
said transferors, it may only be done after first having offered it again to the
transferors for that lower price. In such an instance the provisions of this
paragraph shall also apply to such offer.
2 Subject to a servitude of right of way for road purposes, 10 metres wide, the
centre line of which servitude is indicated by the line a on diagram S.G. No.
321/2012, in favour of
The Remaining Extent of the Farm Mooikloof 333
District Bloemfontein, Province Free State
Measuring 1000,0000 (one thousand comma nil nil nil nil) hectares
Held by Deed of Transfer T4321/1996
a) The causa
AND the said appearer declared that his principal, the developer of the
scheme known as Royal Gardens No.SS.452/2012 being Black Balance
(Pty) Ltd, has in terms of Section 34(3) of the Sectional Titles Act, 95 of
1986, sold the whole of its interest in and to the said scheme to the
undermentioned transferee for the amount of R5 000 000,00 (five million
rand) on the 4th May 2016
All the right, title and interest in the land and building or buildings in the
scheme known as Royal Gardens situated at Erf 155 Kloof, City Council of
Estcourt, which interest consists of -
1 Section No 1 in extent 96 (ninety six) square metres as shown and more fully
described on Sectional Plan No. SS452/2012 and undivided share in the
common property apportioned in accordance with the participation quota as
endorsed on the said sectional plan
2 Section 2 in extent 96 (ninety six) square metres as shown and more fully
described on Sectional Plan No. SS452/2012 and undivided share in the
common property apportioned in accordance with the participation quare as
endorsed on the said sectional plan
8
Paragraph "*3" of Form H must be used for this type of property description.
9
Each unit in the scheme must be stated in a separate paragraph. There will
therefore be 5 unit descriptions in this case. Please note the foot notes at
the bottom of Form H.
10
It will be the 5 certificates of registered sectional title which was issued in
the name of the developer with the opening of the sectional title register
and registration of the sectional plan.
11
Section 21(1) provides that upon the appointment of a trustee all the
property of the solvent spouse shall vest in the trustee who shall deal with
such property as if it were property of the sequestrated estate. Section 21(3)
further provides that the trustee shall not, except with leave of the court,
realise property of the solvent spouse until six weeks have expired after he
has sent a notice of his intention to do so to that spouse. Such notice must
also be published in the Gazette and in a newspaper and shall invite all
separate creditors for value of that spouse to prove their claims. As the
mortgagee of the bond registered over the half share of the solvent spouse
will receive his money from the trustee, the consent of the mortgagee to the
cancellation of the bond is not required to be lodged at the deeds registry.
Erinda Frantzen
CONVEYANCER
I, the undersigned
do hereby appoint Gabriel Jacobus le Roux and/or Erinda Frantzen and/or Monique
Oosthuizen with power of substitution to be my lawful attorney and agent to appear
before the Registrar of Deeds at Pretoria and there to declare that the trustee in the
insolvent estate of Donald Duck and acting in terms of section 21(3) of the
Insolvency Act 24 of 1936 in the solvent estate of Daisy Duck has truly and legally
on 1 May 2016 the undermentioned property to the undermentioned transferee for
the amount of R2 500 000,00;13
12
For the party description, see RCR46/2009.
13
It is not necessary to disclose in the causa that the property has been sold
with the consent of the Master - RCR25/2006.
2
Paul Rush [10]
Note that the question is not clear as to whether the trustee has released the
property of the solvent spouse from the insolvent estate or not. The question has
been answered on the assumption that the property of the solvent spouse also
still vests in the trustee of the insolvent estate.
If the trustee has released the property, the transferor in the power of attorney
will be the trustee as well as the solvent spouse.
In the latter instance, the bond should be disposed of. In other words, the bond
must also be lodged at the deeds registry, together with the consent of the
mortgagee to the cancellation of the bond.
Note again that if the question was answered on the assumption that the
property of the solvent spouse has been released by the trustee -
a) an application in terms of regulation 68(1) had to be brought as there
are co-owners (of which only 1 is sequestrated) and both would be
transferors.
MONIQUE OOSTHUIZEN
appeared before me, the Registrar of Deeds at Cape Town, she, the said
appearer duly authorised thereto by virtue of a power of attorney granted to
her by
KOOS KOEKEMOER
IDENTITY NUMBER 651201 5689 08 2
MARRIED TO SOPHIE KOEKEMOER, WHICH MARRIAGE IS GOVERNED
BY THE LAWS OF ISRAEL, DULY ASSISTED BY HER AS FAR AS NEEDS
BE
dated 11 May 2016 and signed at Cape Town
AND THE appearer declared that his said principal had on 16 January 2015
truly and legally donated the undermentioned property
AND THAT she in her aforesaid capacity hereby cedes and transfers to and
on behalf of -
SOPHIE KOEKEMOER
IDENTITY NUMBER 690101 0012 08 8
MARRIED, WHICH MARRIAGE IS GOVERNED BY THE LAWS OF ISRAEL
8.2 If Koos were domiciled in South Africa, the legal consequences of his
marriage would have been determined by South African law. If Koos did not
enter into an antenuptial contract before his marriage, he would be married in
community of property to Sophie. In such an instance Koos it would not
have been possible for the donation to take place. [2]
8.3 Section 54 of the Income Tax Act provides that donations tax is payable on
the value of property disposed of under a donation by any resident. Although
Koos is a resident, section 56 of the Act makes provision for certain
exemptions from the payment of donations tax. Section 56 provides inter
alia that no donations tax is payable under a donation to or for the benefit of
the spouse of the donor who is not separated from him under a judicial order
or notarial deed of separation. In other words, no donations tax would be
payable. [5]
9.1 Causa
WHEREAS
KOOS KOEKEMOER
IDENTITY NUMBER: 721201 5648 08 7
UNMARRIED
AND WHEREAS
JAN ELLIS
IDENTITY NUMBER: 650215 5487 08 8
UNMARRIED
Thus first R750 000,00 is exempt from the payment of transfer duty
From R750 000,00 up to R1 000 000,00 X 3% =R7 500,00
TRANSFER DUTY PAYABLE ON ERF 456 = R7 500,00
Thus first R750 000,00 is exempt from the payment of transfer duty
From R750 000,00 up to R1 250 000,00 X 3% =R15 000,00
From R1 250 000,00 up to R1 750 000,00 X 6% =R30 000,00
From R1 750 000,00 to R2 000 000,00 X 8% =R20 000,00
TRANSFER DUTY PAYABLE ON ERF 123 =R65 000,00 [3]
2 The property does not form part of the insolvent estate; and
3 the insolvent may freely deal with the property in future without my
consent.
Prepared by me
CONVEYANCER
Gabriël Jacobus le Roux
I, the undersigned
Sannie Louw
Identity number: 691201 5987 08 5
unmarried
2 The contract for the sale of the land has been terminated due to the
purchaser failing to maintain regular payments under the contract;
Owner/Seller
I certify that the Deponent has acknowledged that he knows and understands the
contents of this affidavit which was signed and sworn to before me at
............................ on ....................................
COMMISSIONER OF OATHS
I, the undersigned
2 The said Deed of Grant has not been pledged and is not being detained by
anyone as security for a debt or otherwise.
3 The said Deed of Grant was actually lost or destroyed and cannot be found
though diligent search has been made therefore.
4 I am not aware of the circumstances under which the said Deed of Grant has
become lost or destroyed.
5 The deeds office copy of the said deed of Grant is also lost or destroyed.
6 The notice of intention to apply for the issue of a certificate of registered title
under section 38 of the Deeds Registries Act has been duly publicised in the
Pretoria News and the Government Gazette as required.
COMMISSIONER OF OATHS
Procedure:14
(1) If the title deed of any land has been lost, destroyed, incomplete or
unserviceable, and the registry duplicate of such title deed has also been
lost, etc, the registrar shall, on written application by the owner of the land,
accompanied by a diagram of the land, if no diagram thereof is filed in the
registry or in the office of the surveyor-general concerned, execute a
certificate of registered title in respect of such land in accordance with the
diagram of the land - (s38(1))
(2) Before issuing the certificate the registrar shall at the expense of the
applicant, publish in the prescribed form notice of intention to issue the
certificate in two consecutive ordinary issues of the Gazette and in two
consecutive issues of a newspaper printed in the division in which the land is
situated - (s38(2)).
(3) A draft of the proposed certificate and a copy of the diagram, if any,
accompanying the application shall be open for inspection in the registry free
of charge by any interested person, for a period of six weeks after the date of
the first publication of the notice in the Gazette, during which period any
person interested may object to the issue of the certificate - (s38(3)).
(4) A certificate of registered title issued under this section shall be as nearly as
14
This answer could have been accessed in the section 38(1)-(3) and (5) of the
Deeds Registries Act provided in the exam.
Prepared by me
CONVEYANCER
Gabriël Jacobus le Roux
Application in terms of Section 24bis(3)
of the Deeds Registries Act 47 of 1937 15
I, the undersigned,
Johan Vercuiel in my capacity as director and duly authorised thereto by
virtue of a resolution of
XYZ BANK LIMITED
REGISTRATION NUMBER 1990/023457/06
(Hereinafter referred to as the bank)
WHEREAS the bank is the legal holder of mortgage bond B5743/2001 passed by -
1 Andrew Andrews
Identity number: 760318 5006 08 7
Unmarried
2 Barry Barnett
Identity number: 780603 5007 08 3
Married out of community of property and
3 Charles Chatterley
Identity number: 561120 5094 08 2
Married in community of property to Danelle Chatterley
together carrying on business in partnership as ABC Brothers
for the sum of R800 000,00 (eight hundred thousand rand) plus an additional
amount of R100 000,00 (one hundred thousand rand) whereby the undermentioned
property was mortgaged, namely -
15
Note that there is no prescribed form for this application and consent.
However, Form W, which is the prescribed form for the substitution of a
debtor in terms of section 57 of the Deeds Registries Act, can be used with
the necessary changes.
NOW THEREFORE the bank agree under the provisions of section 24bis(3) of the
aforesaid Act, to the substitution of the individual partners as debtors under the
said bond.
As witnesses:
1
2
XYZ BANK LTD.
AND We,
1 Andrew Andrews
Identity number: 760318 5006 08 7
Unmarried
2 Barry Barnett
Identity number: 780603 5007 08 3
Married out of community of property and
3 Charles Chatterley
Identity number: 561120 5094 08 2
Married in community of property to Danelle Chatterley
the former partners as aforesaid, having read the consent of the legal holder of the
bond, hereby apply to be substituted jointly and severally as debtors under the
bond, renouncing all benefits of the exception de duobus vel pluribus reis debendi,
and hereby assume full liability for the indebtedness under the said bond in terms
of the provisions of the said Act.
As witnesses
1
Andrew Andrews
2
Barry Barnett
Charles Chatterley
14.1 If the developer did not reserve a real right of extension in his favour or if he
did, but such real right has lapsed, the right to extend the scheme vests in
the body corporate - (section 25(6)).
The body corporate is automatically vested with the right to extend the
scheme. However, if the body corporate wants to enter into legal commerce
with the right, the body corporate must first obtain a title deed for such right,
by means of lodging a certificate of real right of extension prepared
according to Form R.
When the body corporate lodges the certificate at the deeds registry for the
issuance thereof, it must be accompanied by-
a) the written consent of all the members of the body corporate; and
b) the written consent of every holder of a bond over a unit in the
scheme.
The body corporate can only exercise its right of extension (by
applying for the registration of the sectional plan of extension and the
incorporation of the additional sections and exclusive use areas in the
sectional title register concerned after having obtained -
a) the written consent of all its members; and
b) the written consent of the mortgagee of each unit in the scheme.
14.2 Prepared by me
Erinda Frantzen
CONVEYANCER
hereby nominate constitute and appoint Gabriël Jacobus le Roux, with power of
substitution to be our true and lawful agent and to appear before the Registrar of
Deeds at Pretoria and then and there as our act and deed to declare that -
WHEREAS the said sheriff, acting under a writ issued by the Registrar of the High
Court on 15 March 2016 under case number 753/2016, for the execution of a
judgement wherein the City of Tshwane Metropolitan Municipality was the plaintiff
and the Body Corporate of the Scheme known as Erf 227 Brooklyn was the
defendant, caused to be attached and to be publicly sold on 5 April 2016 for the
sum of R800 000,00 the hereinafter mentioned property together with exclusive use
areas YARD G3 and YARD G 4 forming part of the common property,16 registered
in the name of the defendant, to the hereinafter mentioned transferee
16
The exclusive use areas should be referred to in accordance with their
description on the sectional plan.
1 A unit consisting of -
a) Section no 4 as shown and more fully described on Sectional Plan No
SS124/2016 in the scheme known as ERF 227 BROOKLYN 21 in
respect of the land and building or buildings situated at Brooklyn
Township, Local authority: City of Tshwane Metropolitan Municipality
of which section the floor area according to the said sectional plan is
229 (two two nine) square metres in extent; and
b) an undivided share in the common property in the scheme apportioned
to the said section in accordance with the participation quota as
endorsed on the said section plan
17
As soon as the amending sectional plan of extension has been registered, the
registrar of deeds will allocate a new SS number to such plan. This SS
number will then also be stamped in on the Certificates of Registered
Sectional Title for units 3 and 4. As this new number has not been provided
in the exam, this number has been made up.
18
The name of the scheme is indicated on the sectional plan SG No
D1026/2015.
19
The township is indicated on section plan SG NO D1026/2015.
20
The extent is indicated on the participation quota sheet of the section plan
SG No D1026/2015.
21
The name of the scheme is indicated on the sectional plan SG No
D1026/2015.
Witnesses:
1 ____________________
2 ____________________ ______________________
TRANSFEROR [20]
TOTAL: [200]
May 2016
Part 2
It will also be required that Lisa consents to the entering into of the contract by
Colin, as purchaser. A spouse married in community of property may not without
the written consent of the other spouse enter into a contract as a purchaser of
immovable property by singing a contract of which the purchase price is payable in
more than two installments and is payable over a period exceeding one year (in
other words, a “contract” as defined in the Alienation of Land Act) - (section
15(2)(g)).
The consent required may, except where it is required for the registration of a deed
in a deeds registry, also be given by way of ratification within a reasonable time
after the act concerned.
Transfer duty in respect of the one-half share of the deceased is not payable, as is
it an exemption in terms of Section 9 of the Transfer Duty Act. However, the
payment of transfer duty is only exempt in respect of the property belonging to the
deceased, therefore transfer duty shall be payable on the one-half share which the
son receives from his mother. Transfer duty must be calculated on the bare
dominium value of the property. Thus: R2 500 000,00 (fair value of the whole
a) 1 Abdoel Khoma
Identity number 721201 5213 08 8
Married according to Muslim custom
2 Fatima Khoma
Identity number 760212 0056 08 7
Married according to Muslim custom 23 [3]
b) 1 John Smith
Identity number 690213 5689 08 2
married, which marriage is governed by the laws of Zimbabwe
2 Mary Smith
Identity number 730215 0235 08 2
married, which marriage is governed by the laws of Zimbabwe [4]
c) 1 Jolene Strauss
Identity number 651230 0568 08 2
Married out of community of property
2 Peter Stanger
Identity number 020825 5236 08 7
A minor [6]
22
As the testator possessed full ownership at the time of his death, the full
value of the property (not only the bare dominium value or habitatio) is
indicated for estate duty purposes according to section 3(2) of the Estate
Duty Act.
23
It is also permissible to describe the parties as unmarried.
As will appear from General Plan S.G. No 3235/1997 and held by Certificate
of Registered Title T8597/1988. [4]
24
b) First transferred and still held by Deed of Transfer T with
General Plan S.G. No. 3235/1997 relating thereto. [4]
24
As this first deed of transfer from the Municipality to X will only receive its T
number upon registration of such deed , simultaneously with the registration
of the transfer from X to Y, you do not at this stage have the T number. You
therefore leave it open. After registration of the two transfers, the
numbering division in the deeds office will stamp in the new number.
25
As the first transfer has already been registered, it would have received a T
number. As you are not provided with this number, you had to make it up.
b) The transferee shall produce an affidavit to the registrar that he has been
unable to obtain possession of the title deed and the registrar shall
thereupon endorse such transfer on the registry duplicate of such title deed
and if the original title deed is at any time lodged in his office, he shall make
a similar endorsement thereon - (section 31(2)(b)). [2]
c) The registrar shall endorse the fact of such transfer on the registry duplicate
of the bond and if the original bond is at any time lodged in his office he shall
make a similar endorsement thereon - (section 31(1). Thus neither the bond
nor the consent of the mortgagee should be lodged. [1]
6.1 His wife is entitled to R125 000,00 27 or a child’s share, whichever is the
greater. As a child’s share of R375 000,00 is greater than R125 000,00, his
wife shall be entitled to R375 000,00.
Each of the three children shall also be entitled to R375 000,00. [4]
6.2 His father shall be entitled to 50% of the balance for distribution, i.e. R650
000,00. Each of his two brothers shall be entitled to R216 666,66 and the
two children of his deceased sister shall be entitled to R108 333,33. [4]
6.3 His wife shall be entitled to R125 000,00 or a child’s share, whichever is the
greater. His wife shall therefore be entitled to R1 600 000,00. The child from
the marriage with the deceased shall be entitled to R1 600 000,00. The
adopted child shall be entitled to R1 600 000,00. The step child can only
inherit from the estate of the mother. [4]
7.1 Prem Singh already owns his half share in the property by means of a
separate title deed T1062/2012. He can therefore proceed to pass a
mortgage bond over his one half share without first applying for the issue of a
Certificate of Registered title ito section 34(1). [4]
7.2 Michael Brown does not need to apply for the issue of a certificate of
registered title ito section 34(1) for his undivided share, as he already holds it
by means of a separate title deed. You will transfer 1/4 share directly from
T472/2013.
26
See Question 8 (part 2) September 2013 for 12 marks. Also asked in
Question 16 (Part 1) September 2009, Question 8 (Part 2) September 2008,
Question 11 (Part 2) May 2007, Question 2 (Part 1) September 2001 and
Question 2 (Part 2) May 1998.
27
The threshold of R250 000,00 only applies in respect of the intestate estates
of persons who died on or after 24 November 2014.
The notarial deed must be entered into by and between the registered owner of the
neighbouring land and the Body Corporate of the scheme (duly authorised thereto
by virtue of a special resolution), if the Body Corporate has already been
established. If the body corporate has not yet been established then the other
party to the notarial deed should be the developer of the scheme (registered owner
of all the units in the scheme).
The mortgagee of the bond that is registered over the neighbouring land (servient
tenement) must consent to the servitude of encroachment.
9.1
• The procedure set out in regulation 13A issued under the Sectional Titled Act
should be followed.
• A written application by the developer or body corporate (whichever is
applicable), a draft replacement schedule of conditions and notice for
publication to be signed by the Registrar of Deeds must be submitted to the
Registrar of deeds.
• The Registrar must at the expense of his deeds registry advertise in two
consecutive ordinary issues of the Gazette and in two consecutive issues of
a newspaper circulating the area of jurisdiction of his deeds registry, a notice
of intention to file a replacement schedule in the relevant sectional title file.
• The draft replacement schedule must lie open for inspection in the deeds
office for 6 weeks .
• If no valid written objection was lodged with the registrar, the replacement
schedule shall take the place of the lost schedule and shall embody or refer
to every condition, servitude, lease or other encumbrance.
• the replacement schedule will be endorsed accordingly and filed in the
sectional title file
• If the original is subsequently found it will be void. [3]
9.2 A notarial variation agreement entered into between the body corporate and
the developer, with the written consent of all the members of the body
corporate as well as with the written consent of the mortgagee of each unit in
the scheme, failing the agreement or obtaining of all consents, an order of
court must be obtained.
28
Also see Question 12 (Part 2) May 2008.
10.1 Transfer duty is payable on R2 000 000,00, in the amount of R65 000,00.
The seller is not a registered VAT vendor for purposes of the transaction and
even if she was, the sale of a property that was previously let out for
residential purposes is VAT exempt which means that transfer duty is
payable. The purchaser can, however, claim back the transfer duty that he
has paid as an input tax deduction. [3]
10.2 Transfer duty is payable on R2 500 000,00 in the amount of R112 500,00.
The seller is Susan, who is not registered for VAT and thus transfer duty is
payable. The fact that her husband is selling his business has nothing to do
with the transfer of the property. [3]
10.3 VAT shall be payable at the rate of 14%. For the rate of 0% to apply, the
parties have to agree in writing inter alia that the enterprise is sold as a going
concern.
If the parties did not agree to this in writing, the zero rate cannot be applied,
even if the enterprise is indeed transferred as a going concern.
Where the parties did not agree in the deed of sale that the supply
constitutes a going concern, SARS will not allow them to introduce this
requirement by means of an addendum. [3]
10.4 VAT will be payable at the rate of 14%. The purchaser was not a registered
VAT vendor at the time when the taxable supply was made, which is one of
the requirements for a zero rated transaction.
Y can still register as a VAT Vendor after the conclusion of the contract,
although he had to apply for such registration before the conclusion of the
contract. In such a case the zero rate can apply. [3]
4 Where the new owner is a person who is not competent to mortgage the
land, for example a minor or fiduciary.
5 Where the bond in terms whereof the substitution is desired is a surety bond.
TOTAL: [100]
Erinda Frantzen
BCom(Law)(UP) LLB (UNISA)
Attorney, Conveyancer and Notary of the High Court of South Africa
and
Gawie le Roux
BA(Law)(UP) LLB (UP) BA Honours (UNISA)
Attorney and Conveyancer of the High Court of South Africa
and published by
PO Box 74047
Lynnwood Ridge
0040
SOURCES
Self-study Deeds Course for Attorneys
The Consolidated Practice Manuals of the Deeds Office of South Africa
Relevant acts, regulations and prescribed forms
Registrar’s Conference Resolutions
SA Deeds Journal