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Trust or Company to be formed

Implications buying and Trust / Company still to be formed

Trust / Company to be formed

  • If Offer to Purchase is signed, the nominee must be appointed before or on the same date.
  • If the nominee is appointed later, SARS will construe it as a subsequent sale transaction and double transfer duty will be payable.
  • A purchaser must therefore have a clear idea of the entity in which he intends acquiring ownership at the time of contracting, since a nomination (and acceptance thereof by the nominee) offers too little time to make an informed decision.
  • Trust Property Control Act does not provide for the acquisition of immovable property on behalf of a Trust that is not yet in existence and it is therefore not possible to do so.
  • VAT
  • No transfer duty is payable if the transaction attracts VAT.