Frequently Asked Questions

Frequently Asked Questions for buyers

How do I search for property?

You can search for property via the SalePartners web site that gives you access to a large number of properties for sale by their owners. As the sellers are acting as their own estate agents, the saving they make in not having to pay agent's commission helps to list the property at a more competitive price.

How do I make an appointment to see one of the listed properties?

SalePartners has a fantastic and easy online Home Viewing Scheduler that allows buyers to book a time with an available agent to view a property.

Am I under any obligation if I go and view a property?

There is no obligation on you when you make an appointment to view a property. The seller may phone or e-mail you after the viewing to ask if you have any other questions relating to the property or if you have any suggestions that would add to the appeal of the property.

Is it better for me to buy property in my personal capacity, or as a legal entity?

Both of these approaches have pros and cons. It is worth discussing this issue with your property attorney to ensure that you choose the option that is most beneficial to you and your dependants.

Do I have to pay transfer duty?

Transfer duty is a one-off tax levied by the South African Reserve Bank when property is acquired. This is a cost that all buyers of property incur and for most transactions it cannot be avoided.

  • If the purchase price is up to R600 000, there is no transfer duty.
  • If the property is sold for between R600 001 and R1 000 000, transfer duty will be 3% of the amount above R600 000.
  • If the property is sold for between R1 000 001 and R1 500 000, transfer duty will be 5% of the amount above R1 000 000 - with an additional flat rate of R12 000.
  • If the property is sold for more than R1 500 001, transfer duty will be 8% of the amount above R1 500 000, with an additional flat rate of R37 000.

How does Capital Gains Tax work?

When you sell your home, the seller becomes liable to pay Capital Gains Tax (CGT) on any profit made on the sale after 01 October 2001 (the date when CGT was first introduced).

In the case of an individual or a special trust, 25% of the capital gains made when the property is sold must be included in the taxable income for the year of assessment that the property is sold. At present the maximum rate of income tax for an individual is 40% so an individual will pay no more than 10% in CGT. Currently, the first R20 000 of the capital gain or loss for individuals or special trusts is disregarded and exempt.

Am I exempt from CGT if the property I sell is my primary residence?

You are exempted from CGT if your property is your primary residence and registered in the name of an individual or a special trust, and the property does not exceed 2 hectares in size. CGT up to R1 500 000 can be excluded. This exemption does not apply if the property is registered in the name of a trust, company or close corporation.

Do I have to pay Capital Gains Tax if I am a non-resident of South Africa?

Yes, non-residents of South Africa are liable for paying CGT when selling any immovable property owned by them in the country.