Be wary, if you are an estate agent acting on behalf of a non-resident (seller), who is selling his/her property for more than R 2000 000.00 (Two Million Rand).
Section 35A, places an obligation on both the Estate agent and the Conveyancer to inform the purchaser in writing, that he or she, is purchasing a property, from a non-resident (seller) and that the provisions of section 35A may become applicable.
- This means that the purchaser must withhold 7.5 % of the amount payable, if the seller is a natural person, or
- 10% of the amount payable, if the seller is a close corporation or company, or
- 15% of the amount payable, if the seller is a trust.
The above-mentioned amount must be paid directly to SARS within 14 (fourteen) days from the date that the seller received his or her money, and
If the purchaser is also a non-resident, the amount must be paid within 28 days from the date that the seller received his or her money.
Should the estate agent and/or the conveyancer fail to inform the purchaser and the latter fails to pay over the amount directly to SARS, both the seller and the conveyancer will be held jointly and severally liable for that amount.
Although the estate agent and/or conveyancer may be able to claim back the amount, directly from the seller, it is advisable to inform both the seller and the purchaser about the provisions of Section 35A of the Act.
Source: Puleng Valentine Tladi
