Must You Pay Tax on Your Rental Income?

Must You Pay Tax on Your Rental Income?

Letting out property can give you an excellent “annuity” income, and if that concept appeals to you and a buy-to-let property comes your way at the right price put an offer in right now; before the current ‘buyer’s market’ runs its course. In your financial planning however remember the tax implications, because as a landlord you must add your rental income to your salary and other taxable income in your tax return every year. Not to do so is tax evasion, and that carries heavy financial penalties as well as the very real threat of criminal prosecution. Having to pay…
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Property Owners, Buyers and Agents: Lost Title Deeds and Bonds

Property Owners, Buyers and Agents: Lost Title Deeds and Bonds

In January 2019 new amendments to Regulations for the replacement of lost title deeds (and similar documents like mortgage bonds and notarial bonds – see below) were published. They were very onerous and slated to come into effect at short notice, but after criticism they were suspended – until now. Revised amendments have been published, to come into effect on 1 January 2020. Firstly, what is a “Title Deed”? A title deed (deed of transfer) is legal proof of ownership of a property. It also contains a lot of other important information relating to the property, such as a full…
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“Seller’s Remorse” and “Subject to Sale of the Buyer’s Property” – Can They Sink the Sale?

“Seller’s Remorse” and “Subject to Sale of the Buyer’s Property” – Can They Sink the Sale?

The upcoming festive season, with its mass migrations of happy holiday-makers to their dream destinations, has always been a busy time for both sellers and buyers. In these hard times however, an increasing number of sellers are feeling pressured to accept offers well under their expectations, so cases of “seller’s remorse” are much more likely now than they have been for many years. The question is, just how easy or difficult is it for a seller to escape a sale agreement signed in haste? Equally common no doubt are sales “subject to the sale of the buyer’s property” - for…
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Beware the Building Deadlines When Buying-to-Build

Beware the Building Deadlines When Buying-to-Build

The case of Walker and Another v Cilantro Residential Estate Homeowners Association (A3067/16) [2016] ZAGPJHC 299 is yet another warning from our courts to take seriously the building deadlines commonly imposed on buyers of plots in residential estates. Failure to comply with them could expose you to heavy fines, recurring penalties and even the risk of losing your plot altogether. A Home Owners Association (HOA) imposed “double levy” penalties totalling R105k on the owners of a plot when they failed to start development of their house before the deadline. Taken to court, the owners challenged the validity of the penalties on…
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