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
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.
No transfer duty is payable if the transaction