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Property Ownership and Estates

Property vs Estates


You can have two senarios:
  • 1. Where the the Seller’s Estate sell his property
  • 2. Where an heir in the estate sell the property

In the case where the seller’s estate sell his property
  • only a duly appointed Executor / Administrator by the Master of the High Court may sign the Offer to Purchase and all transfer documents in terms of a letter of authority or a letter of executorship
  • the date of sale may not be earlier than the date of the letter of authority or letter of
  • executorship prior to death 14 Nov 2014: if the value of the estate is less than R125 000, a letter of authority is sufficient
  • death after 14 Nov 2014: if the value of the estate is less than R250 000, a letter of authority is sufficient
  •  If the seller’s estate hands you a letter of authority but the value of the property is more than R125000/R250000, the letter of authority needs to be cancelled, the estate must be re-reported and a letter of executorship needs to be issued. The otp needs to be re-signed after the date of the letter of executorship
  • once all transfer documents are signed, a JM 33 form needs to be completed by the executor/administrator, all heirs must consent to the sale in writing and these documents, together with a copy of the offer to purchase needs to be be send to the Master’s offices to endorse the power of attorney to pass transfer in terms of s42(1) of the Administration of Estates Act
  • once the power of attorney to pass transfer is endorsed, the transfer may proceed even if the estate has not been finalised

The offer to purchase and transfer documents are signed by the heir and not the executor or administrator
  • No endorsement is required by the Master of the power of attorney to pass transfer but the sale of the property will thus result in two transfers resulting in more cost.
  • On the estate must be finalised before the transfer can be effected to the heir and the linked transfer to the buyer will therefor be delayed for many months.