SARS Clamping Down on Transfer Duties

Transfer Duties:

The South African Revenue Service (SARS) is clamping down on people who have tried to avoid paying higher transfer duties after concessions were announced in the Budget earlier this year.

Buyers and Sellers who destroyed their sale and purchase agreements that were signed before March 1 will expose themselves to charges of fraud, according to SARS spokesperson, Adrian Lackay.

The legally binding date when transfer duties are calculated is the date on which BOTH parties have signed the agreement.

Therefore, I a seller signed the agreement on Feb 25, 2005 and the buyer signed in on March 4, the lower transfer duties announced by the finance minister will apply.
The date on which your home loan finance is approved has no bearing on the date on which transfer duties are applicable.

Sara admits that the situation is difficult to police and that they rely on the integrity of estate agencies and legal advisers to report any suspicious actions.

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