real estate guide 2010

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THETHEREALREAL

ESTESTAATE TE GUIDEGUIDE

Betterbond Offices

Head Office (011) 516-5500Bloemfontein (051) 430-7888 Centurion (012) 663-2637 Eastern Cape (041) 374-0950 Germiston (011) 827-5780 JHB South/East (011) 896-5230

JHB North/West (011) 476-9002 KwaZulu Natal (031) 209-8585Rustenburg (014) 594-2191 Vaal (016) 982-4363 Western Cape (021) 557-9401

qetting your home loan approved can be easy.Jump over! Let Betterbond assist in Removing the

obstacles between you and your dream home.

Call Betterbond on 0800 007 111 or visit www.betterbond.co.za

IndexReduced Repayment Terms Page 4

Bond Repayment Factors Page 6

Income Qualification Page 9

Transfer and Conveyancing Costs Page 16

Financial Information Page 23

The Property Transfer Procedure Page 41

The Philosophy of Financial Planning Page 44

Formation of a Company Page 46

Formation of a Close Corporation Page 47

Useful Contacts Page 49

While every care has been taken to ensure that the information in this publication is correct, The property Association assumes no

Responsibility for possible errors or omissions.

4

By paying a small additional amount each month on your bond you can save a lot of money.The table below shows how much you can save as well as the reduced term resulting fromadditional payment on your bond.

The table is based on a R100 000 bond at a rate of 11% with a repayment term of 20 years.

R 1 032 R 0 20 R 247 680 R 0

R 1 047 R 15 19 R 238 716 R 8 964

R 1 065 R 33 18 R 230 040 R 17 640

R 1 085 R 53 17 R 221 340 R 26 340

R 1 109 R 77 16 R 212 928 R 34 752

R 1 137 R 105 15 R 204 660 R 43 020

R 1 169 R 137 14 R 196 392 R 51 288

R 1 208 R 176 13 R 188 448 R 59 232

R 1 254 R 222 12 R 180 576 R 67 104

R 1 309 R 277 11 R 172 788 R 74 892

R 1 378 R 346 10 R 165 360 R 82 320

R 1 463 R 431 9 R 158 004 R 89 676

R 1 571 R 539 8 R 150 816 R 96 864

R 1 712 R 680 7 R 143 808 R 103 872

R 1 903 R 871 6 R 137 016 R 110 664

R 2 174 R 1 142 5 R 130 440 R 117 240

MonthlyPremium

AdditionalMonthlyPayment

RepaymentTerm

Total Payments

Cash Saving

Reduced Repayment Terms

Head Office (011) 516-5500 • Bloemfontein (051) 430-7888 • Centurion (012) 663-2637 • Eastern Cape (041) 374-0950

• Germiston (011) 827-5780 • JHB South/East (011) 896-5230 • JHB North/West (011) 476-9002 • KwaZulu Natal

(031) 209-8585 • Rustenburg (014) 594-2191 • Vaal (016) 982-4363 • Western Cape (021) 557-9401 • Call Centre 011 438-0000• 0800 007 111 • www.betterbond.co.za

How it worksAll Estate Agents that show their support by submitting their deals throughBetterbond will automatically qualify to participate in Blue Door’s Amazing Race!

The race STARTS 1 March 2010 and CONCLUDES 31 October 2010

Estate Agents will continue to earn R50 for every R150 000 deal that is GRANTEDthrough Betterbond.

Amazing CASHprizes to be WON:

The overall estate agent to Reach the FINISH line with the highest Rand-valuegrants will win R35 000 in Blue Door CASH and will be crowned the NATIONALBlue Door Amazing Race WINNER for 2010!

There is also a R15 000 CASH prize for each of the 3 Runners Up!

For more information contact the Blue Door team on 0861 112 115

Throughout the Race Estate Agents must look out for further communication via SMS.

There will be exciting opportunities to WIN a share of R1500 in CASH

prizes every month!*Prizes will be paid out within 72 hours of winners being notified*

The Race is on!

Introducing…. Blue Door’s

Amazing Race

The table below gives the monthly repayment per R1 000 of a loan with an interest ratebetween 7% and 22% per annum, over a period of 5, 10, 15, 20, 25 or 30 years.For example, if the loan is R100 000, at an interest rate of 11% p.a. to be repaid over 20 years,the monthly repayment is:

R100 000 ÷ 1 000 x 10,32= R1 032.00 per month.

Years

5 10 15 20 25 30

7.00% 19.80 11.61 8.99 7.75 7.07 6.65 7.25% 19.92 11.74 9.13 7.90 7.23 6.82 7.50% 20.04 11.87 9.27 8.06 7.39 6.99 7.75% 20.16 12.00 9.41 8.21 7.55 7.16 8.00% 20.28 12.13 9.56 8.36 7.72 7.34 8.25% 20.40 12.27 9.70 8.52 7.88 7.51 8.50% 20.52 12.40 9.85 8.68 8.05 7.69 8.75% 20.64 12.53 9.99 8.84 8.22 7.87 9.00% 20.76 12.67 10.14 9.00 8.39 8.05 9.25% 20.88 12.80 10.29 9.16 8.56 8.23 9.50% 21.00 12.94 10.44 9.32 8.74 8.41 9.75% 21.12 13.08 10.59 9.49 8.91 8.59 10.00% 21.25 13.22 10.75 9.65 9.09 8.78 10.25% 21.37 13.35 10.90 9.82 9.26 8.96 10.50% 21.49 13.49 11.05 9.98 9.44 9.15 10.75% 21.62 13.63 11.21 10.15 9.62 9.33 11.00% 21.74 13.78 11.37 10.32 9.80 9.52 11.25% 21.87 13.92 11.52 10.49 9.98 9.71 11.50% 21.99 14.06 11.68 10.66 10.16 9.90 11.75% 22.12 14.20 11.84 10.84 10.35 10.09 12.00% 22.24 14.35 12.00 11.01 10.53 10.29 12.25% 22.37 14.49 12.16 11.19 10.72 10.48 12.50% 22.50 14.64 12.33 11.36 10.90 10.67 12.75% 22.63 14.78 12.49 11.54 11.09 10.87 13.00% 22.75 14.93 12.65 11.72 11.28 11.06 13.25% 22.88 15.08 12.82 11.89 11.47 11.26

Interest %

Bond Repayment Factors




6




7

13.50% 23.01 15.23 12.98 12.07 11.66 11.45 13.75% 23.14 15.38 13.15 12.25 11.85 11.65 14.00% 23.27 15.53 13.32 12.44 12.04 11.85 14.25% 23.40 15.68 13.49 12.62 12.23 12.05 14.50% 23.53 15.83 13.66 12.80 12.42 12.25 14.75% 23.66 15.98 13.83 12.98 12.61 12.44 15.00% 23.79 16.13 14.00 13.17 12.81 12.64 15.25% 23.92 16.29 14.17 13.35 13.00 12.84 15.50% 24.05 16.44 14.34 13.54 13.20 13.05 15.75% 24.19 16.60 14.51 13.73 13.39 13.25 16.00% 24.32 16.75 14.69 13.91 13.59 13.45 16.25% 24.45 16.91 14.86 14.10 13.79 13.65 16.50% 24.58 17.06 15.04 14.29 13.98 13.85 16.75% 24.72 17.22 15.21 14.48 14.18 14.05 17.00% 24.85 17.38 15.39 14.67 14.38 14.26 17.25% 24.99 17.54 15.57 14.86 14.58 14.46 17.50% 25.12 17.70 15.75 15.05 14.78 14.66 17.75% 25.26 17.86 15.92 15.24 14.97 14.87 18.00% 25.39 18.02 16.10 15.43 15.17 15.07 18.25% 25.53 18.18 16.28 15.63 15.37 15.28 18.50% 25.67 18.34 16.47 15.82 15.57 15.48 18.75% 25.80 18.50 16.65 16.01 15.78 15.68 19.00% 25.94 18.67 16.83 16.21 15.98 15.89 19.25% 26.08 18.83 17.01 16.40 16.18 16.09 19.50% 26.22 19.00 17.19 16.60 16.38 16.30 19.75% 26.35 19.16 17.38 16.79 16.58 16.50 20.00% 26.49 19.33 17.56 16.99 16.78 16.71 20.25% 26.63 19.49 17.75 17.18 16.99 16.92 20.50% 26.77 19.66 17.93 17.38 17.19 17.12 20.75% 26.91 19.83 18.12 17.58 17.39 17.33 21.00% 27.05 19.99 18.31 17.78 17.60 17.53 21.25% 27.19 20.16 18.49 17.97 17.80 17.74 21.50% 27.34 20.33 18.68 18.17 18.00 17.95 21.75% 27.48 20.50 18.87 18.37 18.21 18.15 22.00% 27.62 20.67 19.06 18.57 18.41 18.36

Years

5 10 15 20 25 30

Interest %

Bond Repayment Factors

Paforma your DealPaforma your Deal

Why Paforma …• We are available nationally to answer your call and assist you with fast and convenient bridging

finance. Wherever you are, call our national toll free number and one of our consultants willguide you through the process.

• Seamless electronic operations and streamlined documentation• Team of service-oriented, highly trained and professional personnel• Transparent and competitively priced products

What do we offer you?Agent CommissionPaforma will contract with the Agency and purchase the right to the Agent commission. Weadvance up to 80% of the commission due to the agent.

Bridging FinanceWe advance up to 80% of the surplus available from sale proceeds, further advance/switchproceeds within 24 hours of requirements being met. No more waiting for registration to take place.

Transfer Duty and RatesQuick and Easy same day service for conveyancers. We will contract directly with the conveyancer,provided that the client signs consent thereto. Should the conveyancer prefer for us to contractdirectly with the client, such application will be attended to and concluded directly with the client.

How much does it cost?A contract amount equal to 7.5% of the advance required is due and payable for a 60 daycontract period. Should settlement not be made within 60 days of date of advance, the client willbe liable for payment of damages calculated daily at 0.125%. However, should settlement bemade earlier than 60 days of date of advance, Paforma undertakes to reduce the contractamount accordingly. The minimum contract amount payable on any transaction is R500.

Salient Requirements• Full purchase price must be secure• All relevant bond and transfer documents must be signed• All conditions of the bond and sale must be met

How do you apply?Call our Toll Free number 0800 BRIDGE (0800 274343) for your application to be capturedtelephonically or to request an application form for completion.

These tables give the bond available for a specific income e.g. someone earning R6 000 p.m.

2000 600 R 66,667 R 64,378 R 62,176 R 60,120 R 58,140 R 56,285 R 54,496 R 52,817 R 51,195 R 49,710 R 48,232 R 46,875 R 45,558 2500 750 R 83,333 R 80,472 R 77,720 R 75,150 R 72,674 R 70,356 R 68,120 R 66,021 R 63,993 R 62,138 R 60,289 R 58,594 R 56,948 3000 900 R100,000 R 96,567 R 93,264 R 90,180 R 87,209 R 84,428 R 81,744 R 79,225 R 76,792 R 74,565 R 72,347 R 70,313 R 68,337 3500 1050 R 116,667 R 112,661 R 108,808 R 105,210 R 101,744 R 98,499 R 95,368 R 92,430 R 89,590 R 86,993 R 84,405 R 82,031 R 79,727 4000 1200 R 133,333 R 128,755 R 124,352 R 120,240 R 116,279 R 112,570 R 108,992 R 105,634 R 102,389 R 99,420 R 96,463 R 93,750 R 91,116 4500 1350 R 150,000 R 144,850 R 139,896 R 135,271 R 130,814 R 126,642 R 122,616 R 118,838 R 115,188 R 111,848 R 108,521 R 105,469 R 102,506 5000 1500 R 166,667 R 160,944 R 155,440 R 150,301 R 145,349 R 140,713 R 136,240 R 132,042 R 127,986 R 124,275 R 120,579 R 117,188 R 113,895 5500 1650 R 183,333 R 177,039 R 170,984 R 165,331 R 159,884 R 154,784 R 149,864 R 145,246 R 140,785 R 136,703 R 132,637 R 128,906 R 125,285 6000 1800 R 200,000 R 193,133 R 186,528 R 180,361 R 174,419 R 168,856 R 163,488 R 158,451 R 153,584 R 149,130 R 144,695 R 140,625 R 136,674 6500 1950 R 216,667 R 209,227 R 202,073 R 195,391 R 188,953 R 182,927 R 177,112 R 171,655 R 166,382 R 161,558 R 156,752 R 152,344 R 148,064 7000 2100 R 233,333 R 225,322 R 217,617 R 210,421 R 203,488 R 196,998 R 190,736 R 184,859 R 179,181 R 173,985 R 168,810 R 164,063 R 159,453 7500 2250 R 250,000 R 241,416 R 233,161 R 225,451 R 218,023 R 211,069 R 204,360 R 198,063 R 191,980 R 186,413 R 180,868 R 175,781 R 170,843 8000 2400 R 266,667 R 257,511 R 248,705 R 240,481 R 232,558 R 225,141 R 217,984 R 211,268 R 204,778 R 198,840 R 192,926 R 187,500 R 182,232 8500 2550 R 283,333 R 273,605 R 264,249 R 255,511 R 247,093 R 239,212 R 231,608 R 224,472 R 217,577 R 211,268 R 204,984 R 199,219 R 193,622 9000 2700 R 300,000 R 289,700 R 279,793 R 270,541 R 261,628 R 253,283 R 245,232 R 237,676 R 230,375 R 223,695 R 217,042 R 210,938 R 205,011 9500 2850 R 316,667 R 305,794 R 295,337 R 285,571 R 276,163 R 267,355 R 258,856 R 250,880 R 243,174 R 236,123 R 229,100 R 222,656 R 216,401 10000 3000 R 333,333 R 321,888 R 310,881 R 300,601 R 290,698 R 281,426 R 272,480 R 264,085 R 255,973 R 248,550 R 241,158 R 234,375 R 227,790 10500 3150 R 350,000 R 337,983 R 326,425 R 315,631 R 305,233 R 295,497 R 286,104 R 277,289 R 268,771 R 260,978 R 253,215 R 246,094 R 239,180 11000 3300 R 366,667 R 354,077 R 341,969 R 330,661 R 319,767 R 309,568 R 299,728 R 290,493 R 281,570 R 273,405 R 265,273 R 257,813 R 250,569 11500 3450 R 383,333 R 370,172 R 357,513 R 345,691 R 334,302 R 323,640 R 313,351 R 303,697 R 294,369 R 285,833 R 277,331 R 269,531 R 261,959 12000 3600 R 400,000 R 386,266 R 373,057 R 360,721 R 348,837 R 337,711 R 326,975 R 316,901 R 307,167 R 298,260 R 289,389 R 281,250 R 273,349 12500 3750 R 416,667 R 402,361 R 388,601 R 375,752 R 363,372 R 351,782 R 340,599 R 330,106 R 319,966 R 310,688 R 301,447 R 292,969 R 284,738 13000 3900 R 433,333 R 418,455 R 404,145 R 390,782 R 377,907 R 365,854 R 354,223 R 343,310 R 332,765 R 323,115 R 313,505 R 304,688 R 296,128 13500 4050 R 450,000 R 434,549 R 419,689 R 405,812 R 392,442 R 379,925 R 367,847 R 356,514 R 345,563 R 335,543 R 325,563 R 316,406 R 307,517 14000 4200 R 466,667 R 450,644 R 435,233 R 420,842 R 406,977 R 393,996 R 381,471 R 369,718 R 358,362 R 347,970 R 337,621 R 328,125 R 318,907 14500 4350 R 483,333 R 466,738 R 450,777 R 435,872 R 421,512 R 408,068 R 395,095 R 382,923 R 371,160 R 360,398 R 349,678 R 339,844 R 330,296 15000 4500 R 500,000 R 482,833 R 466,321 R 450,902 R 436,047 R 422,139 R 408,719 R 396,127 R 383,959 R 372,825 R 361,736 R 351,563 R 341,686 15500 4650 R 516,667 R 498,927 R 481,865 R 465,932 R 450,581 R 436,210 R 422,343 R 409,331 R 396,758 R 385,253 R 373,794 R 363,281 R 353,075 16000 4800 R 533,333 R 515,021 R 497,409 R 480,962 R 465,116 R 450,281 R 435,967 R 422,535 R 409,556 R 397,680 R 385,852 R 375,000 R 364,465 16500 4950 R 550,000 R 531,116 R 512,953 R 495,992 R 479,651 R 464,353 R 449,591 R 435,739 R 422,355 R 410,108 R 397,910 R 386,719 R 375,854 17000 5100 R 566,667 R 547,210 R 528,497 R 511,022 R 494,186 R 478,424 R 463,215 R 448,944 R 435,154 R 422,535 R 409,968 R 398,438 R 387,244 17500 5250 R 583,333 R 563,305 R 544,041 R 526,052 R 508,721 R 492,495 R 476,839 R 462,148 R 447,952 R 434,963 R 422,026 R 410,156 R 398,633 18000 5400 R 600,000 R 579,399 R 559,585 R 541,082 R 523,256 R 506,567 R 490,463 R 475,352 R 460,751 R 447,390 R 434,084 R 421,875 R 410,023

Salary Qualify 30% 9% 9.50% 10% 10.50% 11% 11.50% 12% 12.50% 13.00% 13.5% 14.00% 14.5% 15.00%

Income Qualifications




9

qualifies for a bond of R174 387 @ 30% of his income @ 11% p.a. over a 20 year term.

R 54,496 R 52,817 R 51,195 R 49,710 R 48,232 R 46,875 R 45,558 R 68,120 R 66,021 R 63,993 R 62,138 R 60,289 R 58,594 R 56,948 R 81,744 R 79,225 R 76,792 R 74,565 R 72,347 R 70,313 R 68,337 R 95,368 R 92,430 R 89,590 R 86,993 R 84,405 R 82,031 R 79,727 R 108,992 R 105,634 R 102,389 R 99,420 R 96,463 R 93,750 R 91,116 R 122,616 R 118,838 R 115,188 R 111,848 R 108,521 R 105,469 R 102,506 R 136,240 R 132,042 R 127,986 R 124,275 R 120,579 R 117,188 R 113,895 R 149,864 R 145,246 R 140,785 R 136,703 R 132,637 R 128,906 R 125,285 R 163,488 R 158,451 R 153,584 R 149,130 R 144,695 R 140,625 R 136,674 R 177,112 R 171,655 R 166,382 R 161,558 R 156,752 R 152,344 R 148,064 R 190,736 R 184,859 R 179,181 R 173,985 R 168,810 R 164,063 R 159,453 R 204,360 R 198,063 R 191,980 R 186,413 R 180,868 R 175,781 R 170,843 R 217,984 R 211,268 R 204,778 R 198,840 R 192,926 R 187,500 R 182,232 R 231,608 R 224,472 R 217,577 R 211,268 R 204,984 R 199,219 R 193,622 R 245,232 R 237,676 R 230,375 R 223,695 R 217,042 R 210,938 R 205,011 R 258,856 R 250,880 R 243,174 R 236,123 R 229,100 R 222,656 R 216,401 R 272,480 R 264,085 R 255,973 R 248,550 R 241,158 R 234,375 R 227,790 R 286,104 R 277,289 R 268,771 R 260,978 R 253,215 R 246,094 R 239,180 R 299,728 R 290,493 R 281,570 R 273,405 R 265,273 R 257,813 R 250,569 R 313,351 R 303,697 R 294,369 R 285,833 R 277,331 R 269,531 R 261,959 R 326,975 R 316,901 R 307,167 R 298,260 R 289,389 R 281,250 R 273,349 R 340,599 R 330,106 R 319,966 R 310,688 R 301,447 R 292,969 R 284,738 R 354,223 R 343,310 R 332,765 R 323,115 R 313,505 R 304,688 R 296,128 R 367,847 R 356,514 R 345,563 R 335,543 R 325,563 R 316,406 R 307,517 R 381,471 R 369,718 R 358,362 R 347,970 R 337,621 R 328,125 R 318,907 R 395,095 R 382,923 R 371,160 R 360,398 R 349,678 R 339,844 R 330,296 R 408,719 R 396,127 R 383,959 R 372,825 R 361,736 R 351,563 R 341,686 R 422,343 R 409,331 R 396,758 R 385,253 R 373,794 R 363,281 R 353,075 R 435,967 R 422,535 R 409,556 R 397,680 R 385,852 R 375,000 R 364,465 R 449,591 R 435,739 R 422,355 R 410,108 R 397,910 R 386,719 R 375,854 R 463,215 R 448,944 R 435,154 R 422,535 R 409,968 R 398,438 R 387,244 R 476,839 R 462,148 R 447,952 R 434,963 R 422,026 R 410,156 R 398,633 R 490,463 R 475,352 R 460,751 R 447,390 R 434,084 R 421,875 R 410,023

12% 12.50% 13.00% 13.5% 14.00% 14.5% 15.00%





10


18500 5550 R 616,667 R 595,494 R 575,130 R 556,112 R 537,791 R 520,638 R 504,087 R 488,556 R 473,549 R 459,818 R 446,141 R 433,594 R 421,412 19000 5700 R 633,333 R 611,588 R 590,674 R 571,142 R 552,326 R 534,709 R 517,711 R 501,761 R 486,348 R 472,245 R 458,199 R 445,313 R 432,802 19500 5850 R 650,000 R 627,682 R 606,218 R 586,172 R 566,860 R 548,780 R 531,335 R 514,965 R 499,147 R 484,673 R 470,257 R 457,031 R 444,191 20000 6000 R 666,667 R 643,777 R 621,762 R 601,202 R 581,395 R 562,852 R 544,959 R 528,169 R 511,945 R 497,100 R 482,315 R 468,750 R 455,581 20500 6150 R 683,333 R 659,871 R 637,306 R 616,232 R 595,930 R 576,923 R 558,583 R 541,373 R 524,744 R 509,528 R 494,373 R 480,469 R 466,970 21000 6300 R 700,000 R 675,966 R 652,850 R 631,263 R 610,465 R 590,994 R 572,207 R 554,577 R 537,543 R 521,955 R 506,431 R 492,188 R 478,360 21500 6450 R 716,667 R 692,060 R 668,394 R 646,293 R 625,000 R 605,066 R 585,831 R 567,782 R 550,341 R 534,383 R 518,489 R 503,906 R 489,749 22000 6600 R 733,333 R 708,155 R 683,938 R 661,323 R 639,535 R 619,137 R 599,455 R 580,986 R 563,140 R 546,810 R 530,547 R 515,625 R 501,139 22500 6750 R 750,000 R 724,249 R 699,482 R 676,353 R 654,070 R 633,208 R 613,079 R 594,190 R 575,939 R 559,238 R 542,605 R 527,344 R 512,528 23000 6900 R 766,667 R 740,343 R 715,026 R 691,383 R 668,605 R 647,280 R 626,703 R 607,394 R 588,737 R 571,665 R 554,662 R 539,063 R 523,918 23500 7050 R 783,333 R 756,438 R 730,570 R 706,413 R 683,140 R 661,351 R 640,327 R 620,599 R 601,536 R 584,093 R 566,720 R 550,781 R 535,308 24000 7200 R 800,000 R 772,532 R 746,114 R 721,443 R 697,674 R 675,422 R 653,951 R 633,803 R 614,334 R 596,520 R 578,778 R 562,500 R 546,697 24500 7350 R 816,667 R 788,627 R 761,658 R 736,473 R 712,209 R 689,493 R 667,575 R 647,007 R 627,133 R 608,948 R 590,836 R 574,219 R 558,087 25000 7500 R 833,333 R 804,721 R 777,202 R 751,503 R 726,744 R 703,565 R 681,199 R 660,211 R 639,932 R 621,375 R 602,894 R 585,938 R 569,476 25500 7650 R 850,000 R 820,815 R 792,746 R 766,533 R 741,279 R 717,636 R 694,823 R 673,415 R 652,730 R 633,803 R 614,952 R 597,656 R 580,866 26000 7800 R 866,667 R 836,910 R 808,290 R 781,563 R 755,814 R 731,707 R 708,447 R 686,620 R 665,529 R 646,230 R 627,010 R 609,375 R 592,255 26500 7950 R 883,333 R 853,004 R 823,834 R 796,593 R 770,349 R 745,779 R 722,071 R 699,824 R 678,328 R 658,658 R 639,068 R 621,094 R 603,645 27000 8100 R 900,000 R 869,099 R 839,378 R 811,623 R 784,884 R 759,850 R 735,695 R 713,028 R 691,126 R 671,085 R 651,125 R 632,813 R 615,034 27500 8250 R 916,667 R 885,193 R 854,922 R 826,653 R 799,419 R 773,921 R 749,319 R 726,232 R 703,925 R 683,513 R 663,183 R 644,531 R 626,424 28000 8400 R 933,333 R 901,288 R 870,466 R 841,683 R 813,953 R 787,992 R 762,943 R 739,437 R 716,724 R 695,940 R 675,241 R 656,250 R 637,813 28500 8550 R 950,000 R 917,382 R 886,010 R 856,713 R 828,488 R 802,064 R 776,567 R 752,641 R 729,522 R 708,368 R 687,299 R 667,969 R 649,203 29000 8700 R 966,667 R 933,476 R 901,554 R 871,743 R 843,023 R 816,135 R 790,191 R 765,845 R 742,321 R 720,795 R 699,357 R 679,688 R 660,592 29500 8850 R 983,333 R 949,571 R 917,098 R 886,774 R 857,558 R 830,206 R 803,815 R 779,049 R 755,119 R 733,223 R 711,415 R 691,406 R 671,982 30000 9000 R 1,000,000 R 965,665 R 932,642 R 901,804 R 872,093 R 844,278 R 817,439 R 792,254 R 767,918 R 745,650 R 723,473 R 703,125 R 683,371 30500 9150 R 1,016,667 R 981,760 R 948,187 R 916,834 R 886,628 R 858,349 R 831,063 R 805,458 R 780,717 R 758,078 R 735,531 R 714,844 R 694,761 31000 9300 R 1,033,333 R 997,854 R 963,731 R 931,864 R 901,163 R 872,420 R 844,687 R 818,662 R 793,515 R 770,505 R 747,588 R 726,563 R 706,150 31500 9450 R 1,050,000 R 1,013,948 R 979,275 R 946,894 R 915,698 R 886,492 R 858,311 R 831,866 R 806,314 R 782,933 R 759,646 R 738,281 R 717,540 32000 9600 R 1,066,667 R 1,030,043 R 994,819 R 961,924 R 930,233 R 900,563 R 871,935 R 845,070 R 819,113 R 795,360 R 771,704 R 750,000 R 728,929 32500 9750 R 1,083,333 R 1,046,137 R 1,010,363 R 976,954 R 944,767 R 914,634 R 885,559 R 858,275 R 831,911 R 807,788 R 783,762 R 761,719 R 740,319 33000 9900 R 1,100,000 R 1,062,232 R 1,025,907 R 991,984 R 959,302 R 928,705 R 899,183 R 871,479 R 844,710 R 820,215 R 795,820 R 773,438 R 751,708 33500 10050 R 1,116,667 R 1,078,326 R 1,041,451 R 1,007,014 R 973,837 R 942,777 R 912,807 R 884,683 R 857,509 R 832,643 R 807,878 R 785,156 R 763,098 34000 10200 R 1,133,333 R 1,094,421 R 1,056,995 R 1,022,044 R 988,372 R 956,848 R 926,431 R 897,887 R 870,307 R 845,070 R 819,936 R 796,875 R 774,487

Salary Qualify 30% 9% 9.50% 10% 10.50% 11% 11.50% 12% 12.50% 13.00% 13.5% 14.00% 14.5% 15.00%





11


R 504,087 R 488,556 R 473,549 R 459,818 R 446,141 R 433,594 R 421,412 R 517,711 R 501,761 R 486,348 R 472,245 R 458,199 R 445,313 R 432,802 R 531,335 R 514,965 R 499,147 R 484,673 R 470,257 R 457,031 R 444,191 R 544,959 R 528,169 R 511,945 R 497,100 R 482,315 R 468,750 R 455,581 R 558,583 R 541,373 R 524,744 R 509,528 R 494,373 R 480,469 R 466,970 R 572,207 R 554,577 R 537,543 R 521,955 R 506,431 R 492,188 R 478,360 R 585,831 R 567,782 R 550,341 R 534,383 R 518,489 R 503,906 R 489,749 R 599,455 R 580,986 R 563,140 R 546,810 R 530,547 R 515,625 R 501,139 R 613,079 R 594,190 R 575,939 R 559,238 R 542,605 R 527,344 R 512,528 R 626,703 R 607,394 R 588,737 R 571,665 R 554,662 R 539,063 R 523,918 R 640,327 R 620,599 R 601,536 R 584,093 R 566,720 R 550,781 R 535,308 R 653,951 R 633,803 R 614,334 R 596,520 R 578,778 R 562,500 R 546,697 R 667,575 R 647,007 R 627,133 R 608,948 R 590,836 R 574,219 R 558,087 R 681,199 R 660,211 R 639,932 R 621,375 R 602,894 R 585,938 R 569,476 R 694,823 R 673,415 R 652,730 R 633,803 R 614,952 R 597,656 R 580,866 R 708,447 R 686,620 R 665,529 R 646,230 R 627,010 R 609,375 R 592,255 R 722,071 R 699,824 R 678,328 R 658,658 R 639,068 R 621,094 R 603,645 R 735,695 R 713,028 R 691,126 R 671,085 R 651,125 R 632,813 R 615,034 R 749,319 R 726,232 R 703,925 R 683,513 R 663,183 R 644,531 R 626,424 R 762,943 R 739,437 R 716,724 R 695,940 R 675,241 R 656,250 R 637,813 R 776,567 R 752,641 R 729,522 R 708,368 R 687,299 R 667,969 R 649,203 R 790,191 R 765,845 R 742,321 R 720,795 R 699,357 R 679,688 R 660,592 R 803,815 R 779,049 R 755,119 R 733,223 R 711,415 R 691,406 R 671,982 R 817,439 R 792,254 R 767,918 R 745,650 R 723,473 R 703,125 R 683,371 R 831,063 R 805,458 R 780,717 R 758,078 R 735,531 R 714,844 R 694,761 R 844,687 R 818,662 R 793,515 R 770,505 R 747,588 R 726,563 R 706,150 R 858,311 R 831,866 R 806,314 R 782,933 R 759,646 R 738,281 R 717,540 R 871,935 R 845,070 R 819,113 R 795,360 R 771,704 R 750,000 R 728,929 R 885,559 R 858,275 R 831,911 R 807,788 R 783,762 R 761,719 R 740,319 R 899,183 R 871,479 R 844,710 R 820,215 R 795,820 R 773,438 R 751,708 R 912,807 R 884,683 R 857,509 R 832,643 R 807,878 R 785,156 R 763,098 R 926,431 R 897,887 R 870,307 R 845,070 R 819,936 R 796,875 R 774,487

12% 12.50% 13.00% 13.5% 14.00% 14.5% 15.00%





12


34500 10350 R 1,150,000 R 1,110,515 R 1,072,539 R 1,037,074 R 1,002,907 R 970,919 R 940,054 R 911,092 R 883,106 R 857,498 R 831,994 R 808,594 R 785,877 35000 10500 R 1,166,667 R 1,126,609 R 1,088,083 R 1,052,104 R 1,017,442 R 984,991 R 953,678 R 924,296 R 895,904 R 869,925 R 844,051 R 820,313 R 797,267 35500 10650 R 1,183,333 R 1,142,704 R 1,103,627 R 1,067,134 R 1,031,977 R 999,062 R 967,302 R 937,500 R 908,703 R 882,353 R 856,109 R 832,031 R 808,656 36000 10800 R 1,200,000 R 1,158,798 R 1,119,171 R 1,082,164 R 1,046,512 R 1,013,133 R 980,926 R 950,704 R 921,502 R 894,780 R 868,167 R 843,750 R 820,046 36500 10950 R 1,216,667 R 1,174,893 R 1,134,715 R 1,097,194 R 1,061,047 R 1,027,205 R 994,550 R 963,908 R 934,300 R 907,208 R 880,225 R 855,469 R 831,435 37000 11100 R 1,233,333 R 1,190,987 R 1,150,259 R 1,112,224 R 1,075,581 R 1,041,276 R 1,008,174 R 977,113 R 947,099 R 919,635 R 892,283 R 867,188 R 842,825 37500 11250 R 1,250,000 R 1,207,082 R 1,165,803 R 1,127,255 R 1,090,116 R 1,055,347 R 1,021,798 R 990,317 R 959,898 R 932,063 R 904,341 R 878,906 R 854,214 38000 11400 R 1,266,667 R 1,223,176 R 1,181,347 R 1,142,285 R 1,104,651 R 1,069,418 R 1,035,422 R 1,003,521 R 972,696 R 944,490 R 916,399 R 890,625 R 865,604 38500 11550 R 1,283,333 R 1,239,270 R 1,196,891 R 1,157,315 R 1,119,186 R 1,083,490 R 1,049,046 R 1,016,725 R 985,495 R 956,918 R 928,457 R 902,344 R 876,993 39000 11700 R 1,300,000 R 1,255,365 R 1,212,435 R 1,172,345 R 1,133,721 R 1,097,561 R 1,062,670 R 1,029,930 R 998,294 R 969,345 R 940,514 R 914,063 R 888,383 39500 11850 R 1,316,667 R 1,271,459 R 1,227,979 R 1,187,375 R 1,148,256 R 1,111,632 R 1,076,294 R 1,043,134 R 1,011,092 R 981,773 R 952,572 R 925,781 R 899,772 40000 12000 R 1,333,333 R 1,287,554 R 1,243,523 R 1,202,405 R 1,162,791 R 1,125,704 R 1,089,918 R 1,056,338 R 1,023,891 R 994,200 R 964,630 R 937,500 R 911,162 40500 12150 R 1,350,000 R 1,303,648 R 1,259,067 R 1,217,435 R 1,177,326 R 1,139,775 R 1,103,542 R 1,069,542 R 1,036,689 R 1,006,628 R 976,688 R 949,219 R 922,551 41000 12300 R 1,366,667 R 1,319,742 R 1,274,611 R 1,232,465 R 1,191,860 R 1,153,846 R 1,117,166 R 1,082,746 R 1,049,488 R 1,019,056 R 988,746 R 960,938 R 933,941 41500 12450 R 1,383,333 R 1,335,837 R 1,290,155 R 1,247,495 R 1,206,395 R 1,167,917 R 1,130,790 R 1,095,951 R 1,062,287 R 1,031,483 R 1,000,804 R 972,656 R 945,330 42000 12600 R 1,400,000 R 1,351,931 R 1,305,699 R 1,262,525 R 1,220,930 R 1,181,989 R 1,144,414 R 1,109,155 R 1,075,085 R 1,043,911 R 1,012,862 R 984,375 R 956,720 42500 12750 R 1,416,667 R 1,368,026 R 1,321,244 R 1,277,555 R 1,235,465 R 1,196,060 R 1,158,038 R 1,122,359 R 1,087,884 R 1,056,338 R 1,024,920 R 996,094 R 968,109 43000 12900 R 1,433,333 R 1,384,120 R 1,336,788 R 1,292,585 R 1,250,000 R 1,210,131 R 1,171,662 R 1,135,563 R 1,100,683 R 1,068,766 R 1,036,977 R 1,007,813 R 979,499 43500 13050 R 1,450,000 R 1,400,215 R 1,352,332 R 1,307,615 R 1,264,535 R 1,224,203 R 1,185,286 R 1,148,768 R 1,113,481 R 1,081,193 R 1,049,035 R 1,019,531 R 990,888 44000 13200 R 1,466,667 R 1,416,309 R 1,367,876 R 1,322,645 R 1,279,070 R 1,238,274 R 1,198,910 R 1,161,972 R 1,126,280 R 1,093,621 R 1,061,093 R 1,031,250 R 1,002,278 44500 13350 R 1,483,333 R 1,432,403 R 1,383,420 R 1,337,675 R 1,293,605 R 1,252,345 R 1,212,534 R 1,175,176 R 1,139,078 R 1,106,048 R 1,073,151 R 1,042,969 R 1,013,667 45000 13500 R 1,500,000 R 1,448,498 R 1,398,964 R 1,352,705 R 1,308,140 R 1,266,417 R 1,226,158 R 1,188,380 R 1,151,877 R 1,118,476 R 1,085,209 R 1,054,688 R 1,025,057 45500 13650 R 1,516,667 R 1,464,592 R 1,414,508 R 1,367,735 R 1,322,674 R 1,280,488 R 1,239,782 R 1,201,585 R 1,164,676 R 1,130,903 R 1,097,267 R 1,066,406 R 1,036,446 46000 13800 R 1,533,333 R 1,480,687 R 1,430,052 R 1,382,766 R 1,337,209 R 1,294,559 R 1,253,406 R 1,214,789 R 1,177,474 R 1,143,331 R 1,109,325 R 1,078,125 R 1,047,836 46500 13950 R 1,550,000 R 1,496,781 R 1,445,596 R 1,397,796 R 1,351,744 R 1,308,630 R 1,267,030 R 1,227,993 R 1,190,273 R 1,155,758 R 1,121,383 R 1,089,844 R 1,059,226 47000 14100 R 1,566,667 R 1,512,876 R 1,461,140 R 1,412,826 R 1,366,279 R 1,322,702 R 1,280,654 R 1,241,197 R 1,203,072 R 1,168,186 R 1,133,441 R 1,101,563 R 1,070,615 47500 14250 R 1,583,333 R 1,528,970 R 1,476,684 R 1,427,856 R 1,380,814 R 1,336,773 R 1,294,278 R 1,254,401 R 1,215,870 R 1,180,613 R 1,145,498 R 1,113,281 R 1,082,005 48000 14400 R 1,600,000 R 1,545,064 R 1,492,228 R 1,442,886 R 1,395,349 R 1,350,844 R 1,307,902 R 1,267,606 R 1,228,669 R 1,193,041 R 1,157,556 R 1,125,000 R 1,093,394 48500 14550 R 1,616,667 R 1,561,159 R 1,507,772 R 1,457,916 R 1,409,884 R 1,364,916 R 1,321,526 R 1,280,810 R 1,241,468 R 1,205,468 R 1,169,614 R 1,136,719 R 1,104,784 49000 14700 R 1,633,333 R 1,577,253 R 1,523,316 R 1,472,946 R 1,424,419 R 1,378,987 R 1,335,150 R 1,294,014 R 1,254,266 R 1,217,896 R 1,181,672 R 1,148,438 R 1,116,173 49500 14850 R 1,650,000 R 1,593,348 R 1,538,860 R 1,487,976 R 1,438,953 R 1,393,058 R 1,348,774 R 1,307,218 R 1,267,065 R 1,230,323 R 1,193,730 R 1,160,156 R 1,127,563 50000 15000 R 1,666,667 R 1,609,442 R 1,554,404 R 1,503,006 R 1,453,488 R 1,407,129 R 1,362,398 R 1,320,423 R 1,279,863 R 1,242,751 R 1,205,788 R 1,171,875 R 1,138,952

Salary Qualify 30% 9% 9.50% 10% 10.50% 11% 11.50% 12% 12.50% 13.00% 13.5% 14.00% 14.5% 15.00%





13


R 940,054 R 911,092 R 883,106 R 857,498 R 831,994 R 808,594 R 785,877 R 953,678 R 924,296 R 895,904 R 869,925 R 844,051 R 820,313 R 797,267 R 967,302 R 937,500 R 908,703 R 882,353 R 856,109 R 832,031 R 808,656 R 980,926 R 950,704 R 921,502 R 894,780 R 868,167 R 843,750 R 820,046 R 994,550 R 963,908 R 934,300 R 907,208 R 880,225 R 855,469 R 831,435 R 1,008,174 R 977,113 R 947,099 R 919,635 R 892,283 R 867,188 R 842,825 R 1,021,798 R 990,317 R 959,898 R 932,063 R 904,341 R 878,906 R 854,214 R 1,035,422 R 1,003,521 R 972,696 R 944,490 R 916,399 R 890,625 R 865,604 R 1,049,046 R 1,016,725 R 985,495 R 956,918 R 928,457 R 902,344 R 876,993 R 1,062,670 R 1,029,930 R 998,294 R 969,345 R 940,514 R 914,063 R 888,383 R 1,076,294 R 1,043,134 R 1,011,092 R 981,773 R 952,572 R 925,781 R 899,772 R 1,089,918 R 1,056,338 R 1,023,891 R 994,200 R 964,630 R 937,500 R 911,162 R 1,103,542 R 1,069,542 R 1,036,689 R 1,006,628 R 976,688 R 949,219 R 922,551 R 1,117,166 R 1,082,746 R 1,049,488 R 1,019,056 R 988,746 R 960,938 R 933,941 R 1,130,790 R 1,095,951 R 1,062,287 R 1,031,483 R 1,000,804 R 972,656 R 945,330 R 1,144,414 R 1,109,155 R 1,075,085 R 1,043,911 R 1,012,862 R 984,375 R 956,720 R 1,158,038 R 1,122,359 R 1,087,884 R 1,056,338 R 1,024,920 R 996,094 R 968,109 R 1,171,662 R 1,135,563 R 1,100,683 R 1,068,766 R 1,036,977 R 1,007,813 R 979,499 R 1,185,286 R 1,148,768 R 1,113,481 R 1,081,193 R 1,049,035 R 1,019,531 R 990,888 R 1,198,910 R 1,161,972 R 1,126,280 R 1,093,621 R 1,061,093 R 1,031,250 R 1,002,278 R 1,212,534 R 1,175,176 R 1,139,078 R 1,106,048 R 1,073,151 R 1,042,969 R 1,013,667 R 1,226,158 R 1,188,380 R 1,151,877 R 1,118,476 R 1,085,209 R 1,054,688 R 1,025,057 R 1,239,782 R 1,201,585 R 1,164,676 R 1,130,903 R 1,097,267 R 1,066,406 R 1,036,446 R 1,253,406 R 1,214,789 R 1,177,474 R 1,143,331 R 1,109,325 R 1,078,125 R 1,047,836 R 1,267,030 R 1,227,993 R 1,190,273 R 1,155,758 R 1,121,383 R 1,089,844 R 1,059,226 R 1,280,654 R 1,241,197 R 1,203,072 R 1,168,186 R 1,133,441 R 1,101,563 R 1,070,615 R 1,294,278 R 1,254,401 R 1,215,870 R 1,180,613 R 1,145,498 R 1,113,281 R 1,082,005 R 1,307,902 R 1,267,606 R 1,228,669 R 1,193,041 R 1,157,556 R 1,125,000 R 1,093,394 R 1,321,526 R 1,280,810 R 1,241,468 R 1,205,468 R 1,169,614 R 1,136,719 R 1,104,784 R 1,335,150 R 1,294,014 R 1,254,266 R 1,217,896 R 1,181,672 R 1,148,438 R 1,116,173 R 1,348,774 R 1,307,218 R 1,267,065 R 1,230,323 R 1,193,730 R 1,160,156 R 1,127,563 R 1,362,398 R 1,320,423 R 1,279,863 R 1,242,751 R 1,205,788 R 1,171,875 R 1,138,952

12% 12.50% 13.00% 13.5% 14.00% 14.5% 15.00%





14

Transfer & Conveyancing Costs

PurchasePriceBond

Amount

Transfer Costs Bond Costs

ConvFee

Misc VAT DeedsOffice

Transfer Duty Total

Natural Person

LegalPerson

Natural Person

LegalPerson

ConvFee

Misc VAT Deeds Office

Total

60,000 3200 450 511 70 0 4800 4231 9031 2500 450 413 260 362370,000 3200 450 511 70 0 5600 4231 9831 2500 450 413 260 362380,000 3200 450 511 70 0 6400 4231 10631 2500 450 413 260 362390,000 3400 450 539 70 0 7200 4459 11659 2500 450 413 260 3623100,000 3650 450 574 70 0 8000 4744 12744 2500 450 413 260 3623105,000 3750 450 588 70 0 8400 4858 13258 2600 450 427 260 3737115,000 3750 450 588 70 0 9200 4858 14058 2600 450 427 260 3737125,000 3750 450 588 70 0 10000 4858 14858 2600 450 427 260 3737130,000 3900 450 609 70 0 10400 5029 15429 2700 450 441 260 3851140,000 3900 450 609 70 0 11200 5029 16229 2700 450 441 260 3851150,000 3900 450 609 70 0 12000 5029 17029 2700 450 441 260 3851155,000 4200 450 651 300 0 12400 5601 18001 2900 450 469 300 4119160,000 4200 450 651 300 0 12800 5601 18401 2900 450 469 300 4119165,000 4200 450 651 300 0 13200 5601 18801 2900 450 469 300 4119170,000 4200 450 651 300 0 13600 5601 19201 2900 450 469 300 4119175,000 4200 450 651 300 0 14000 5601 19601 2900 450 469 300 4119180,000 4400 450 679 300 0 14400 5829 20229 3000 450 483 300 4233185,000 4400 450 679 300 0 14800 5829 20629 3000 450 483 300 4233190,000 4400 450 679 300 0 15200 5829 21029 3000 450 483 300 4233195,000 4400 450 679 300 0 15600 5829 21429 3000 450 483 300 4233200,000 4400 450 679 300 0 16000 5829 21829 3000 450 483 300 4233205,000 4800 450 735 300 0 16400 6285 22685 3300 450 525 300 4575210,000 4800 450 735 300 0 16800 6285 23085 3300 450 525 300 4575215,000 4800 450 735 300 0 17200 6285 23485 3300 450 525 300 4575220,000 4800 450 735 300 0 17600 6285 23885 3300 450 525 300 4575225,000 4800 450 735 300 0 18000 6285 24285 3300 450 525 300 4575230,000 4800 450 735 300 0 18400 6285 24685 3300 450 525 300 4575235,000 4800 450 735 300 0 18800 6285 25085 3300 450 525 300 4575240,000 4800 450 735 300 0 19200 6285 25485 3300 450 525 300 4575245,000 4800 450 735 300 0 19600 6285 25885 3300 450 525 300 4575250,000 4800 450 735 300 0 20000 6285 26285 3300 450 525 300 4575255,000 5500 450 833 300 0 20400 7083 27483 3700 450 581 300 5031260,000 5500 450 833 300 0 20800 7083 27883 3700 450 581 300 5031265,000 5500 450 833 300 0 21200 7083 28283 3700 450 581 300 5031

UPDATE OF TRANSFER AND BOND REGISTRATION COSTS, TRANSFER AND BOND FEESCourtesy Dykes van Heerden Inc - Attorneys and Conveyancers




16


PurchasePriceBond

Amount


ConvFee


Transfer Duty Total

Natural Person

LegalPerson

Natural Person

LegalPerson

ConvFee


Total

270,000 5500 450 833 300 0 21600 7083 28683 3700 450 581 300 5031275,000 5500 450 833 300 0 22000 7083 29083 3700 450 581 300 5031280,000 5500 450 833 300 0 22400 7083 29483 3700 450 581 300 5031285,000 5500 450 833 300 0 22800 7083 29883 3700 450 581 300 5031290,000 5500 450 833 300 0 23200 7083 30283 3700 450 581 300 5031295,000 5500 450 833 300 0 23600 7083 30683 3700 450 581 300 5031300,000 5500 450 833 300 0 24000 7083 31083 3700 450 581 300 5031305,000 5900 450 889 400 0 24400 7639 32039 4100 450 637 400 5587310,000 5900 450 889 400 0 24800 7639 32439 4100 450 637 400 5587315,000 5900 450 889 400 0 25200 7639 32839 4100 450 637 400 5587320,000 5900 450 889 400 0 25600 7639 33239 4100 450 637 400 5587325,000 5900 450 889 400 0 26000 7639 33639 4100 450 637 400 5587330,000 5900 450 889 400 0 26400 7639 34039 4100 450 637 400 5587335,000 5900 450 889 400 0 26800 7639 34439 4100 450 637 400 5587340,000 5900 450 889 400 0 27200 7639 34839 4100 450 637 400 5587345,000 5900 450 889 400 0 27600 7639 35239 4100 450 637 400 5587350,000 5900 450 889 400 0 28000 7639 35639 4100 450 637 400 5587355,000 6400 450 959 400 0 28400 8209 36609 4600 450 707 400 6157360,000 6400 450 959 400 0 28800 8209 37009 4600 450 707 400 6157365,000 6400 450 959 400 0 29200 8209 37409 4600 450 707 400 6157370,000 6400 450 959 400 0 29600 8209 37809 4600 450 707 400 6157375,000 6400 450 959 400 0 30000 8209 38209 4600 450 707 400 6157380,000 6400 450 959 400 0 30400 8209 38609 4600 450 707 400 6157385,000 6400 450 959 400 0 30800 8209 39009 4600 450 707 400 6157390,000 6400 450 959 400 0 31200 8209 39409 4600 450 707 400 6157395,000 6400 450 959 400 0 31600 8209 39809 4600 450 707 400 6157400,000 6400 450 959 400 0 32000 8209 40209 4600 450 707 400 6157410,000 6900 450 1029 400 0 32800 8779 41579 5000 450 763 400 6613420,000 6900 450 1029 400 0 33600 8779 42379 5000 450 763 400 6613430,000 6900 450 1029 400 0 34400 8779 43179 5000 450 763 400 6613440,000 6900 450 1029 400 0 35200 8779 43979 5000 450 763 400 6613450,000 6900 450 1029 400 0 36000 8779 44779 5000 450 763 400 6613460,000 7500 450 1113 400 0 36800 9463 46263 5400 450 819 400 7069470,000 7500 450 1113 400 0 37600 9463 47063 5400 450 819 400 7069





17


PurchasePriceBond

Amount


ConvFee


Transfer Duty Total

Natural Person

LegalPerson

Natural Person

LegalPerson

ConvFee


Total

480,000 7500 450 1113 400 0 38400 9463 47863 5400 450 819 400 7069490,000 7500 450 1113 400 0 39200 9463 48663 5400 450 819 400 7069500,000 7500 450 1113 400 0 40000 9463 49463 5400 450 819 400 7069510,000 8500 450 1253 500 500 40800 11203 51503 6200 450 931 500 8081520,000 8500 450 1253 500 1000 41600 11703 52303 6200 450 931 500 8081530,000 8500 450 1253 500 1500 42400 12203 53103 6200 450 931 500 8081540,000 8500 450 1253 500 2000 43200 12703 53903 6200 450 931 500 8081550,000 8500 450 1253 500 2500 44000 13203 54703 6200 450 931 500 8081560,000 8500 450 1253 500 3000 44800 13703 55503 6200 450 931 500 8081570,000 8500 450 1253 500 3500 45600 14203 56303 6200 450 931 500 8081580,000 8500 450 1253 500 4000 46400 14703 57103 6200 450 931 500 8081590,000 8500 450 1253 500 4500 47200 15203 57903 6200 450 931 500 8081600,000 8500 450 1253 500 5000 48000 15703 58703 6200 450 931 500 8081610,000 9500 450 1393 500 5500 48800 17343 60643 7000 450 1043 500 8993620,000 9500 450 1393 500 6000 49600 17843 61443 7000 450 1043 500 8993630,000 9500 450 1393 500 6500 50400 18343 62243 7000 450 1043 500 8993640,000 9500 450 1393 500 7000 51200 18843 63043 7000 450 1043 500 8993650,000 9500 450 1393 500 7500 52000 19343 63843 7000 450 1043 500 8993660,000 9500 450 1393 500 8000 52800 19843 64643 7000 450 1043 500 8993670,000 9500 450 1393 500 8500 53600 20343 65443 7000 450 1043 500 8993680,000 9500 450 1393 500 9000 54400 20843 66243 7000 450 1043 500 8993690,000 9500 450 1393 500 9500 55200 21343 67043 7000 450 1043 500 8993700,000 9500 450 1393 500 10000 56000 21843 67843 7000 450 1043 500 8993710,000 10500 450 1533 500 10500 56800 23483 69783 7800 450 1155 500 9905720,000 10500 450 1533 500 11000 57600 23983 70583 7800 450 1155 500 9905730,000 10500 450 1533 500 11500 58400 24483 71383 7800 450 1155 500 9905740,000 10500 450 1533 500 12000 59200 24983 72183 7800 450 1155 500 9905750,000 10500 450 1533 500 12500 60000 25483 72983 7800 450 1155 500 9905760,000 10500 450 1533 500 13000 60800 25983 73783 7800 450 1155 500 9905770,000 10500 450 1533 500 13500 61600 26483 74583 7800 450 1155 500 9905780,000 10500 450 1533 500 14000 62400 26983 75383 7800 450 1155 500 9905790,000 10500 450 1533 500 14500 63200 27483 76183 7800 450 1155 500 9905800,000 10500 450 1533 500 15000 64000 27983 76983 7800 450 1155 500 9905810,000 11500 450 1673 500 15500 64800 29623 78923 8600 450 1267 500 10817





18


PurchasePriceBond

Amount


ConvFee


Transfer Duty Total

Natural Person

LegalPerson

Natural Person

LegalPerson

ConvFee


Total

820,000 11500 450 1673 500 16000 65600 30123 79723 8600 450 1267 500 10817830,000 11500 450 1673 500 16500 66400 30623 80523 8600 450 1267 500 10817840,000 11500 450 1673 500 17000 67200 31123 81323 8600 450 1267 500 10817850,000 11500 450 1673 500 17500 68000 31623 82123 8600 450 1267 500 10817860,000 11500 450 1673 500 18000 68800 32123 82923 8600 450 1267 500 10817870,000 11500 450 1673 500 18500 69600 32623 83723 8600 450 1267 500 10817880,000 11500 450 1673 500 19000 70400 33123 84523 8600 450 1267 500 10817890,000 11500 450 1673 500 19500 71200 33623 85323 8600 450 1267 500 10817900,000 11500 450 1673 500 20000 72000 34123 86123 8600 450 1267 500 10817910,000 12500 450 1813 500 20500 72800 35763 88063 9400 450 1379 500 11729920,000 12500 450 1813 500 21000 73600 36263 88863 9400 450 1379 500 11729930,000 12500 450 1813 500 21500 74400 36763 89663 9400 450 1379 500 11729940,000 12500 450 1813 500 22000 75200 37263 90463 9400 450 1379 500 11729950,000 12500 450 1813 500 22500 76000 37763 91263 9400 450 1379 500 11729960,000 12500 450 1813 500 23000 76800 38263 92063 9400 450 1379 500 11729970,000 12500 450 1813 500 23500 77600 38763 92863 9400 450 1379 500 11729980,000 12500 450 1813 500 24000 78400 39263 93663 9400 450 1379 500 11729990,000 12500 450 1813 500 24500 79200 39763 94463 9400 450 1379 500 117291,000,000 12500 450 1813 500 25000 80000 40263 95263 9400 450 1379 500 117291,100,000 13000 450 1883 600 33000 88000 48933 103933 9800 450 1435 650 123351,200,000 13500 450 1953 600 41000 96000 57503 112503 10200 450 1491 650 127911,300,000 14000 450 2023 600 49000 104000 66073 121073 10600 450 1547 650 132471,400,000 14500 450 2093 600 57000 112000 74643 129643 11000 450 1603 650 137031,500,000 15000 450 2163 600 65000 120000 83213 138213 11400 450 1659 650 141591,600,000 15500 450 2233 600 73000 128000 91783 146783 11800 450 1715 650 146151,700,000 16000 450 2303 600 81000 136000 100353 155353 12200 450 1771 650 150711,800,000 16500 450 2373 600 89000 144000 108923 163923 12600 450 1827 650 155271,900,000 17000 450 2443 600 97000 152000 117493 172493 13000 450 1883 650 159832,000,000 17500 450 2513 600 105000 160000 126063 181063 13400 450 1939 650 164392,100,000 18000 450 2583 800 113000 168000 134833 189833 13800 450 1995 1000 172452,200,000 18500 450 2653 800 121000 176000 143403 198403 14200 450 2051 1000 177012,300,000 19000 450 2723 800 129000 184000 151973 206973 14600 450 2107 1000 181572,400,000 19500 450 2793 800 137000 192000 160543 215543 15000 450 2163 1000 186132,500,000 20000 450 2863 800 145000 200000 169113 224113 15400 450 2219 1000 19069





19


PurchasePriceBond

Amount


ConvFee


Transfer Duty Total

Natural Person

LegalPerson

Natural Person

LegalPerson

ConvFee


Total

2,600,000 20500 450 2933 800 153000 208000 177683 232683 15800 450 2275 1000 195252,700,000 21000 450 3003 800 161000 216000 186253 241253 16200 450 2331 1000 199812,800,000 21500 450 3073 800 169000 224000 194823 249823 16600 450 2387 1000 204372,900,000 22000 450 3143 800 177000 232000 203393 258393 17000 450 2443 1000 208933,000,000 22500 450 3213 800 185000 240000 211963 266963 17400 450 2499 1000 213493,100,000 23000 450 3283 1000 193000 248000 220733 275733 17800 450 2555 1000 218053,200,000 23500 450 3353 1000 201000 256000 229303 284303 18200 450 2611 1000 222613,300,000 24000 450 3423 1000 209000 264000 237873 292873 18600 450 2667 1000 227173,400,000 24500 450 3493 1000 217000 272000 246443 301443 19000 450 2723 1000 231733,500,000 25000 450 3563 1000 225000 280000 255013 310013 19400 450 2779 1000 236293,600,000 25500 450 3633 1000 233000 288000 263583 318583 19800 450 2835 1000 240853,700,000 26000 450 3703 1000 241000 296000 272153 327153 20200 450 2891 1000 245413,800,000 26500 450 3773 1000 249000 304000 280723 335723 20600 450 2947 1000 249973,900,000 27000 450 3843 1000 257000 312000 289293 344293 21000 450 3003 1000 254534,000,000 27500 450 3913 1000 265000 320000 297863 352863 21400 450 3059 1000 259094,100,000 28000 450 3983 1000 273000 328000 306433 361433 21800 450 3115 1000 263654,200,000 28500 450 4053 1000 281000 336000 315003 370003 22200 450 3171 1000 268214,300,000 29000 450 4123 1000 289000 344000 323573 378573 22600 450 3227 1000 272774,400,000 29500 450 4193 1000 297000 352000 332143 387143 23000 450 3283 1000 277334,500,000 30000 450 4263 1000 305000 360000 340713 395713 23400 450 3339 1000 281895,000,000 32500 450 4613 1000 345000 400000 383563 438563 25400 450 3619 1000 304695,500,000 33750 450 4788 1200 385000 440000 425188 480188 26400 450 3759 2000 326096,000,000 35000 450 4963 1200 425000 480000 466613 521613 27400 450 3899 2000 337496,500,000 36250 450 5138 1200 465000 520000 508038 563038 28400 450 4039 2000 348897,000,000 37500 450 5313 1200 505000 560000 549463 604463 29400 450 4179 2000 360298,000,000 40000 450 5663 1200 585000 640000 632313 687313 31400 450 4459 2000 383099,000,000 42500 450 6013 1200 665000 720000 715163 770163 33400 450 4739 2000 4058910,000,000 45000 450 6363 1200 745000 800000 798013 853013 35400 450 5019 2000 42869

PROVISION MUST BE MADE FOR THE FOLLOWING AMOUNTS:-* Bank's admin and initiation fees* Levies for up to 12 months (normally 3 months)* Transfer of Exclusive Use Areas such as parking bays, garages etc. in an amount of approximately. R1200.00 per

Exclusive Use Area* Insurance Certificate for Sectional Title transfers in the sum of approximately. R750.00* A charge which varies from attorney to attorney for electronic instructions fee, FICA fee, deeds office searches

and other charges in an amount of between R1 000.00 to R2 000.00.





20

TRANSFER OF PROPERTY FROM A COMPANY, CC OR TRUST INTO THE NAME OF AN INDIVIDUAL WITHOUT PAYING

TRANSFER COSTS, DIVIDEND TAX OR CAPITAL GAINS TAX

Unfortunately this applies only to certain specified instances and not to all immovable propertywhich is owned by Companies, Close Corporations or Trusts. The following minimumrequirements must be present before such a transfer can take place:-

For Companies and Close Corporations

• The transferee (the Purchaser) must personally and ordinarily have resided in theproperty since 11 February 2009 and must have used it mainly for domestic purposesand will continue to do so until the date of registration of transfer of the property;

• The Purchaser together with his/her spouse must directly hold all the share capital of theCompany or the member's interest of the Close Corporation as from the 11th February2009 to the date of registration of the property into the name of the Purchaser;

• The property must be less than 2 hectares in extent;

For Trusts

• The Purchaser must personally and ordinarily have resided in the property since 11February 2009 and must have used it mainly for domestic purposes and will continue todo so until the date of registration of transfer of the property;

• The property must be less than 2 hectares in extent;

• The Purchaser is the person who deposed of that residence to the trust by way of adonation, settlement or other disposition or who financed all the expenditure relating tosuch Property which was actually incurred by the trust to acquire and to improve theresidence.

The window of opportunity is available until 31 December 2011.

Please note that this is not meant to be a comprehensive exposition on the effects of Section9(20) of the Transfer Duty Act 1949 and you are strongly urged to take legal advice beforemaking any decisions in regard to the same.

On the Conveyancing panels of First National Bank, Absa Bank, Nedbank and Standard Bankoperating in the Western Cape, George, Garden Route, Coastal Areas of Kwazulu Natal andGauteng.

Contact No: (Gauteng) 011 279 5000; Cape Town & George : 0861 110 210;

& Kwazulu Natal : (031) 903-1851

Dykes, van Heerden IncAttorneys & Conveyancers

At BDO business is personal. Developing strong, personal relationships is at the forefront of our service approach, and the fact that many of our clients are long-standing is not by accident. By getting to know you personally and understanding your business operations, we are able to offer a tailored solution – each and every time. What sets us apart from our competitors is the way we see, listen and think about our clients. It is this dedication and commitment that helps us deliver distinctively different relationships and results.

As a leading mid-size professional services firm, we are capable of competing with the larger firms but are still small enough to care. We are agile, innovative and dynamic, thereby allowing us to adapt to each client’s particular needs. There is a growing need for additional choice in the provision of professional services. BDO is the obvious alternative.

We act as auditors and advisers to a number of companies in the real estate sector, and are proud of the clients we work with. If they’ve chosen to place their trust in us and build a solid foundation with BDO as the base, why shouldn’t you?

Audit • Advisory • Tax

www.bdo.co.za

SOLID FOUNDATIONS ARE BUILTON SOUND RELATIONSHIPS

23

Tax Rates - Individuals - 2011Taxable Income Rates of TaxR 0 - R140 000 18% of each R 1R140 001 - R221 000 R 25 200 + 25% of the amount over R140 000R210 001 - R305 000 R 45 450 + 30% of the amount over R221 000R290 001 - R431 000 R 70 650 + 35% of the amount over R305 000R410 001 - R552 000 R114 750 + 38% of the amount over R431 000R552 001 and above R160 730 + 40% of the amount over R552 000

Tax Rates - Individuals - 2010Taxable Income Rates of TaxR 0 - R132 000 18% of each R 1R132 001 - R210 000 R 23 760 + 25% of the amount over R132 000R210 001 - R290 000 R 43 260 + 30% of the amount over R210 000R290 001 - R410 000 R 67 260 + 35% of the amount over R290 000R410 001 - R525 000 R109 260 + 38% of the amount over R410 000R525 001 and above R152 960 + 40% of the amount over R525 000

Tax ThresholdsIndividual Taxable income

2011 2010 Under 65 R57 000 R54 200

Over 65 R88 528 R84 200

Tax RebatesAmounts deductible from the tax payable 2011 2010 Primary rebate R10 260 R9 756

Persons over 65 R5 675 R5 400

These rebates are not available to trusts.

Tax Payable (Examples)

Taxable income - under 65 2010 2011 Saving

R100 000 R8 244 R7 740 R504

R250 000 R45 504 R45 504 R1 614

R500 000 R133 704 R130 710 R2 994

R1 000 000 R333 704 R329 670 R3 534

R1 500 000 R533 204 R529 670 R3 534

Financial Information


24

Capital Gains Tax (CGT)Effective Date

1 October 2001 (Valuation date)

Determination of a capital gain or loss

A capital gain or loss is the difference between the base cost of an asset and the proceeds received

or deemed to have been received for the asset upon the disposal or the deemed disposal of that

asset.

Four Cornerstones for Determining a Capital Gain or Loss

For CGT purposes, the following must be present:

• An asset;

• Proceeds or deemed proceeds;

• A disposal or deemed disposal; and

• A base cost.

Determination of base cost

Assets acquired before 1 October 2001:

The base cost will be the sum of the ‘valuation date value’ and qualifying costs incurred after the

valuation date. The valuation date value, depending on the information and records available, can

be determined by using anyone of the following methods:

a) Market value of the asset on 1 October 2001

b) The time-apportionment base method.

c) 20% of the proceeds from the disposal.

In the case of assets acquired before 1 October 2001, special rules apply to prevent taxpayers from

claiming phantom losses or from being taxed on gains that were made before that date.

Assets acquired on or after 1 October 2001:

The base costs is the price paid for the asset, plus certain other costs incurred that are directly related

to buying it, selling it or improving it, e.g., transfer duties, attorney’s fees, improvement costs,

commission donation tax, etc.

The following are examples of costs that cannot be added to the base cost:

• Expense otherwise allowable as a deduction for income tax purposes

• Borrowing costs

• Raising fees

• Rates and taxes

• Insurance

In the case of an asset that was subject to a deemed disposal (e.g. asset acquired through donation

or inheritance), the base cost in the hands of the recipient will be equal to the deemed proceeds

that were used to calculate the gain in the hands of the person who disposed of the asset.

25

Basic FrameworkDisposal or deemed disposal

Proceeds or deemed proceeds

Deduct base cost

Capital gain Capital loss

Capital gain Capital lossLess: Exclusions Add: ExclusionDeferral of gain Limitations

Sum of all gains or losses reduced by annual exclusion (R17 500 for natural persons and special trusts)

Aggregate capital gain Aggregate capital loss

Deduct assessed capital loss brought forward from previous year

net capital gain Aggregate capital loss

X by inclusion rate C/F to next tax year

Taxable capital gain

Include in taxable income (sec 26A)

X by rate of tax

Normal income tax payable

Inclusion rates

Type of taxpayer Inclusion rate Statutory Tax Effective Tax

rate (%) rate (%)

Individuals 25 0 - 40 4.5 - 10

Companies 50 28 14

Trusts

Unit N/A 30 N/A

Special 25 0 - 40 4.5 -10

Other 50 40 20

Retirement Funds N/A 0 N/A

Life Assurers

Ind policyholder fund 25 30 7.5

Co policyholder fund 50 29 14.5

Corporate fund 50 29 14.5

Untaxed policyholder fund 0 0 0


26

Death

The annual exclusion granted to individuals - R120 000 from 1 March 2007.

Liability for CGT

• South African residents are liable for CGT on their world wide assets;

• Non residents are liable for CGT on the following assets situated in the South Africa:

– Immovable property and any interest in or right to that immovable property; and

– Assets of a permanent establishment, branch or agency situated in South Africa through

which trade is carried on.

Withholding Tax Regime for Non-residents

With effect from a date to be announced, a capital gain made by a non-resident on the disposal of

an immovable property or any right or interest therein is subject to a withholding tax regime. The

obligation to withhold the tax is placed upon the purchaser and the withholding rates vary from 5%

to 10% depending on the nature of the non-resident seller.

No tax has to be withheld in respect of transactions if the total value is less than R2 million. Tax withheld

by the purchaser must be paid within certain timeframes depending on details of the transaction and

subject to any directive that may have been issued by SARS.

Certain obligations and even personal liability for taxes, penalties and interest are placed upon

estate agents and conveyancers involved in transactions where the seller is a non-resident.

What is an ‘Asset’?

It is property of whatever nature, whether movable or immovable, corporeal of incorporeal, including:

- Coins mainly made from gold or platinum.

- Any right or interest of whatever nature to or in such property,

but excluding currency.

What is a ‘Disposal’?

Means any event, act, forbearance or operation of law, which in terms of the Eighth Schedule and

more particularly par 11 is treated or regarded as a disposal and includes:

• events that constitute alienation or transfer of ownership of an asset; e.g. sale, donation, cession,

expropriation, grant or exchange;

• events that result in expiry or abandonment of an asset; e.g. forfeiture, termination, redemption,

cancellation, surrender, waiver, discharge, release, renunciation or relinquishment;

• scrapping, loss or destruction of an asset

• vesting of an interest in a trust asset in a beneficiary;

• distribution of an asset by a company to a shareholder;

• granting, renewal, extension or exercise of an option;

• decrease in value of a person’s interest in a company, trust or partnership through value shifting’

The following are not regarded as disposals:

• transfer of an asset as security for debt;

• issuing or cancellation of shares by a company;

• granting of an option by a company to take up shares or debentures,


27

• issuing of units by an equity unit trust or the granting of an option to take up units;

• issuing of a bond, debenture, note or borrowing of money from a person;

• obtaining of credit from a person;

• distribution of trust assets to a beneficiary who has a vested right to the assets;

• correction at the deeds office of incorrect property registration;

• lending of marketable security in terms of a lending arrangement;

Certain events are deemed disposals for CGT purposes whilst certain other events will give rise tosimultaneous disposals and acquisitions, eg. on emigration, waiver of debt, death, etc.

Exclusions

The following are examples of assets excluded from CGT:

• Primary residence owned by a natural person or special trust (various special rules apply and theexclusion only applies to the first R1,5 million of the total gain made);

It is proposed that in order to reduce the compliance burden of calculating the gain or loss onthe sale of a primary residence, the capital gains tax exclusion will henceforth fully apply to aprimary residence up to a gross value of R2 million. Primary residences valued above thisthreshold will remain subject to the R1.5 million CGT exclusion on realised capital gains.

• Most personal use assets, i.e. assets not mainly used for purposes of carrying on a trade;

• Lump sum benefits from pension, provident or retirement annuity funds;

• Proceeds from long term insurance policies (excluding second-hand policies);

• Payment as compensation for personal injury, illness or defamation claims;

• Gains from gambling, games or competitions authorised and conducted in terms of RSA laws;

• Gains made by approved Public Benefit Organisations;

• Gains and losses made by unit trust funds;

• Gains of up to R750 000 on the disposal of a small business by reason of death, reaching the ageof 55 or for reasons of ill-health, provided certain requirements are met;

• Donations and bequests to approved Public Benefit Organisations.

Roll-over or deferrals

In the case of the following, the gain on the disposal of an asset is deferred until a subsequent CGT event:

• Involuntary disposals (e.g. fire, theft) provided that the asset is replaced within a year;

• Reinvestment in replacement assets that is brought into use within one year;

• Transfers between spouses

• Disposal of assets using the special corporate rules.

Capital losses not taken into account

Losses suffered in respect of the following transactions or events cannot be claimed for CGT purposes:

• Losses on disposal of intangible assets acquired before 1 October 2001;

• Losses in respect of certain forfeited deposits;

• Losses suffered on transactions with connected persons are ring-fenced and can only be off-setagainst gains resulting from dealing with that same connected person;

• Losses on disposal of certain shares;

• Losses on disposal of options on certain personal use assets.

Assets held in foreign currency

For definitions of this subject you can contact a tax consultant at BDO. (011) 488-1700.


28

The calculation of CGT

Consideration on disposal

LESS: Base cost

Capital gain

LESS: Primary/Annual exclusion (if applicable) (17 500)*

LESS: Previous assessed capital loss

Amount subject to CGT

MULTIPLIED BY: Inclusion rate (25%/50%)

Amount of the capital gain to be included in the taxpayer’s income

Note *: The annual exclusion of R17 500 capital gain or capital loss is granted to individuals andspecial trusts only.

Residence Based Tax.

With effect from years of assessments commencing on or after 1 January 2001, all income earned by

a South African resident became taxable in South Africa, while non-residents are subject to tax on

their South African sourced income.

Definition of Resident

Natural person

The definition of resident provides that in the case of a natural person, a resident is:

• Any natural person who is ordinarily resident in the South Africa; or

• Any natural person who is not ordinarily resident in South Africa but who:

– Is physically present in South Africa for a period exceeding 91 days in aggregate during the

current year of assessment and for a period exceeding 91 days in aggregate during each

of the prior 5 years of assessment; and

– Was physically present in South Africa for a period exceeding 915 days in aggregate during

the previous 5 years of assessments.

in which case, that person will be a resident with effect from the first day of that relevant year of

assessment.

Before the introduction of the amendment in the 2005 Revenue Laws Amendment Act, the physical

presence test was applied over the previous 3 years.

The section was amended to increase the period to 5 years.

The amendment comes into operation as follows:

• in respect of a person who was a resident (by virtue of the physical presence test) on 28 February

2005, it comes into operation for years of assessment commencing on or after 1 March 2006; and

• in respect of any other person, it comes into operation for years of assessment commencing on,

or after, March 2005.

Where a person has been outside of South Africa for a continuous period of 330 full days after he

ceases to be physically present in South Africa, he will be deemed not to have been resident in South

Africa from the day that he ceased to be physically present in the country.

South African resident employees who render services for any employer outside of South Africa

for a period which in aggregate exceeds 183 full days commencing on or ending during a

period of assessment, and for a continuous period exceeding 60 full days during such 183 day

period, will not be liable for income tax on their remuneration for the period that they are outside

South Africa.


Taxable IncomeExempt Income

The following income received is exempt from income tax:

• Pension received or accrued to a resident from a source outside South Africa subject to anyexclusions.

• Capital portion of a purchased annuity.

• Exemption on remuneration received from foreign services on behalf of an employer.

• War and certain disability pensions.

• All dividends received (except for dividends distributed by property trusts and specified foreigndividends).

• Interest earned by natural persons, up to a maximum of R21 000 per tax year (R30 000 for personsover 65 years of age). Only R3 000 is allowed against foreign interest and foreign dividends.

• Interest earned by non-residents who are absent from South Africa for 183 days, or more, perannum and who are not carrying on business in South Africa.

• UIF and Workmen’s Compensation benefits.

• An amount to a maximum of R30 000 received on termination of employment subject to

• the taxpayer having attained 55 years of age; or

• termination of employment being the result of ill health or superannuation; or

• termination of services resulting from the employer ceasing to carry on trade, or the taxpayerbecoming redundant as a consequence of general reduction of personnel. This exemption is notavailable if the taxpayer was at any time a director of the company of held more than 5% of theshares in the company.

Foreign contract workers in South Africa on contracts of less than 3 full years will be exempt from thedefinition of resident.

Companies

A company will be considered to be a resident in South Africa for tax purposes if it is incorporated,established, formed or have their place of effective management in South Africa.

Foreign branches of South African companies

The taxable income of foreign branches will be subject to South African income tax.

Losses in foreign branches cannot be off-set against income from a South African source with effectfrom years of assessment commencing on or after 1 January 2001 and must be carried forward foroff-set against foreign sourced income in the following years.

Controlled Foreign Companies (CFC)

A Controlled Foreign Company means any foreign company where more than 50% of the totalparticipation rights in that foreign company are held or more than 50% of the voting rights in thatforeign company are directly or indirectly exercisable by 1 or more residents.

South African residents must impute all income of a CFC in the same ratio as the participation rightsof the resident in such CFC, subject to a number of exclusions.

Net income of the CFC is defined as the CFC’s taxable income determined as if the CFC is a SouthAfrican taxpayer.

Foreign tax credits

A resident is allowed to deduct all foreign taxes paid in respect of foreign income included in his orher taxable income from the tax payable in South Africa on the total amount of such income. Anyexcess credits may be carried forward.

29


Deductions - Individuals

Medical and disability Expenses

Medical Expenditure

A number of changes have been made to this section of the legislation, effective 1 March 2006.

Qualifying Medical Expenditure includes:

• any contributions to a medical scheme made in respect of the taxpayer and his/her spouse anddependants; and

• all amounts paid in respect of medical, dental and hospitalisation expenses, payments to pharmacistsor medicines obtained on prescription and payments to nursing homes or a registered nurse/midwife forservices supplied to the taxpayer, his/her spouse, and his/her children.

Qualifying medical expenses do not include expenses that have been recovered from the medial scheme.

Only the person that paid the expense can claim it.

Deductions allowable are as follows:

• In case of taxpayers over the age of 65;

There is no limit on the amount of qualifying medical expenditure that may be claimed as a deduction,

i.e. all medical expenses paid by the taxpayer can be deducted

• In case of taxpayers under the age of 65:

The deduction is split into two parts:

(a) Basic deduction for medical aid contributions:

R670 per month if the contribution is solely for the benefit of the taxpayer;

R1 340 per month if the contributions are for the benefit of the taxpayer and 1 dependent.

If the taxpayer has more than 1 dependent the limit is increased by R410 for each additional

dependent, e.g. if the contributions the taxpayer makes to the fund are in respect of the taxpayer

and 3 dependents, the limit is R2 160 per month. (R1 340 +R410 x 2)

The basic deduction is reduced by any amount contributed to the medical aid by the employer on

behalf of the taxpayer which was not taxed as a fringe benefit.

(b) Deduction of other medical expenses:

The balance of the medical aid contributions exceeding the basic deduction and all other

qualifying medical expenditure paid by the taxpayer, and not recovered from the medical aid are

deductible to the extent that they exceed 7.5% of the taxpayer’s taxable income (before medical

deduction). Any part of medical aid contributions paid by an employer that is included in the

taxpayer’s remuneration as a fringe benefit, shall be deemed to have been contributed by the

taxpayer and will therefore qualify for deduction under this part.

Physical Disability Expenditure

A taxpayer can claim all expenses paid by him/her as a result of his/her physical disability or the physical

disability of his/her spouse or his/her child.

If the taxpayer or his/her spouse on his/her child is handicapped, all qualifying medical expenses paid by

the taxpayer, i.e. not only those paid in respect of the handicapped person, may be claimed.

Note: The deduction is claimed by the person who pays the expense.

30


31

Entertainment

With effect form 1 March 2002, section 11 (u) was amended to exclude employees and office holderswho receive “remuneration” as defined in the Fourth Schedule from claiming entertainmentexpenditure. This expense may still be claimed by an agent or representative whose remuneration isderived from commission.

Donations to Public Benefit Organisations

Bona Fide donations made by individuals and companies to certain Public Benefit Organizations(PBO) (including donations to the Government) are deductible and the maximum deduction iscalculated at 10% of taxable income before deducting medical expenses. (5% in respect ofqualifying contributions during the year of assessment).

Home Study Expenses

A deduction for home study costs will only be allowed if:

• the study is regularly and exclusively used for the purpose of the taxpayer’s trade: and isspecifically equipped for such purposes.

• in the case of an employee who derives income mainly from commission, his duties are mainlyperformed other than in an office provided by the employer.

• in the case of other employees, his duties are mainly performed in the home study.

Contributions to Pension, Retirement Annuity and Provident Funds

The following rules are subject to certain reform measures to be implemented in 2007:

Pension Funds

Any person may claim a deduction of his current contributions to a pension fund. The deduction islimited to the greater of:

• R1 750 or

• 7,5% of his remuneration derived form retirement funding employment

A maximum deduction of R1 800 per annum is allowable for arrear contributions to a pension fund.

Retirement Annuity Funds

A taxpayer may claim his current contributions to a retirement annuity fund as a deduction which islimited to the greatest of:

(i) 15% of income from non-retirement funding employment.

(ii) R3 500 less any deduction for current contributions to a pension fund; or

(ii) R1 750

The maximum deduction of contributions with regard to the reinstatement of membership of aretirement annuity fund is R1 800 per annum.

Provident Funds

Contributions to approved provident and benefit funds are not allowed as a deduction from thetaxpayer’s income.

Employees TaxEmployers are required to deduct employees’ tax according to tax deduction tables supplied by theSARS Commissioner on all remuneration paid to employees unless otherwise instructed in terms of atax deduction directive issued by SARS.


32

Usury Act Rates

Replaced by the National Credit Act No 34 of 2005

Prime Overdraft Rates

Prime overdraft Rates Rate Prime overdraft Rates Rate Prime overdraft Rates RateDate of change % Date of change % Date of change %

14 August 2009 ..................10.50 29 May 2009......................11.00 4 May 2009 .......................12.00

5 March 2009 .....................13.00 6 February 2009 ................14.00 12 December 2008..........15.00

13 June 2008......................15.50 21 April 2008......................15.00 7 December 2007........... 14.50

12 October 2007 .............. 14.00 17 August 2007 ............... 13.50 8 June 2007 ..................... 13.00

8 December 2006 .............12.50 13 October 2006...............12.00 3 August 2006...................11.50

8 June 2006 .......................11.00 15 August 2005 .................10.50 16 August 2004 ...................... 11.00

18 December 2003............... 11.50 20 October 2003 ................... 12.00 16 September 2003 ............ 13.50

14 August 2003......................... 14.50 12 June 2003 ........................... 15.50 13 September 2002 ........... 17.00

The above dates are applicable to Nedbank Limited. Banks do not always adjust their Rates on the same day.

Provisional TaxProvisional payments are advance tax payments in respect of normal tax payable for the year.

Individuals who earn taxable income greater than the tax threshold (for individuals over 65,R120 000)

or more are obliged to register as provisional taxpayers.

With effect 1 March 2006, directors and members of a close corporation are no longer

required to register as provisional taxpayers merely because they are directors of private companies

or members of a close corporation. This does not apply where they receive any other additional

income.

With effect for tax years ending on or after 1 January 2009, 2nd provisional payments must bring total

tax payments over 80% of a tax payer’s total tax liability to avoid penalties and interest,while the 3rd

provisional payment due six months after year end (seven months for February tax year ends) must be

made to avoid interest after that date.


Taxation of Lump Sum Payments

Certain lump sum payments received on termination of service, qualify for taxation as described

below.

Lump sum payments received by the taxpayer from his employer by way of bonus, gratuity or

compensation upon either reaching the age of 55, retirement due to superannuation, ill health or

other infirmity are tax free to a maximum of R30 000 over the lifetime of the taxpayer.

Furthermore, all employees who lose their jobs as a result of either the employer ceasing to operate

or because of a general reduction of personnel, will qualify for the tax free concession regardless of

age. This extension will however not apply to any present or past director nor to any shareholder who

hold or held more than 5% of a company’s shares.

On Retirement or Death

Pension Funds,Retirement Annuity Funds and Provident Funds

A maximum of one third of the taxpayer’s entitlement from a pension or retirement annuity fund may

be commuted to a lump sum.

The taxable portion of the lump sum from a pension, provident or retirement annuity fund received

on or after 1 October 2007 as a result of death or retirement is calculated as:

The total lump sum less the deductible amount.

The deductible amount is calculated by means of a formula B.

Formula B states the following:

Z (the deductible amount) = C + E – D, where:

- C is a fixed amount of R300 000 less any withdrawal benefit deducted after 1 March 2009 (the

taxpayer qualifies for this deduction once during his or her lifetime);

- E is the sum total of fund contributions made by the taxpayer that did not qualify as a deduction

during prior years; and

- D the sum of all the Z-values (deductible amounts) allowed in prior years.

The taxable portion of the lump sum on death or retirement is taxed separately from the other taxable

income of the taxpayer at the following tax rate:

Retirement or Death

Taxable amount Tax Liability

Up to R300 000 0%

R300 001 – R 600 000 18% x taxable amount in excess of R300 000

R600 001 – R 900 000 R54 000 + 27% x taxable amount in excess of R600 000

R900 001 and above R135 000 + 36% of the amount above R900 000

33


On Withdrawal from the Fund

With effect from 1 March 2009, the exempt portions, upon withdrawal, will be as follows:

Pension Funds

The tax-free portion will be R22 500 plus any amount paid into any approved pension fund or

retirement annuity fund.

Retirement Annuity Funds

The tax-free portion will be R22 500, plus the amount paid into another retirement annuity fund or used

to purchase an approved insurance policy that provides benefits similar to a retirement annuity fund.

Provident Funds

The tax-free portion will be R22 500, plus any amount paid into any approved pension, provident or

retirement annuity fund.

The taxable portion of a lump sum upon withdrawal from a fund will be taxed separately from other

taxable income, with effect from 1 March 2009. The rate will be as follows:

Withdrawals from retirement savings

Taxable amount Tax Liability

R0 - R22 500 0%

R22 501 - R600 000 18% of the amount above R22 500

R600 001 – R900 000 R103 950 + 27% of the amount above R600 000

R900 001 and above R184 950 + 36% of the amount above R900 000

In all cases, the tax-free portions from either a pension, provident or retirement annuity fund shall not

be less than the lesser of the lump sum benefit or any contributions made to the fund by the member

which were not previously allowed as deductions.

34


Recommended Guideline for the Retention of Documents and Records

Retention periods commence from the date of the last entry in the particular record

Relating Specifically to Companies(In terms of Government Gazette dated 25 November 1983)

Retention Period

Certificate of IncorporationCertificate of Change of NameMemorandum and Articles of Association IndefiniteCertificate to Commence BusinessMinute book, CM25 and CM26, as well as resolutions passed at general meetings

Annual Financial StatementsBooks of accountSupporting schedules to books of account and ancillary books of account 15 yearsFixed asset registers

Proxy forms 3 years

Relating Specifically to Close CorporationsRetention Period

Founding Statement (CK1)Amended Founding Statement (CK2) IndefiniteMinute books

Annual Financial StatementsBooks of account 15 yearsAccounting records including supporting schedulesFixed asset registers

When a company/close corporation reproduces its records on microfilm, the original may bedestroyed after a period of three years. The microfilm copies must be retained indefinitely.

Other Suggested Periods Of Retention(Where relevant statutory or legal requirements have been taken into account)

Retention Period

Records of trust monies Indefinite

Tax returns and assessments (after date of assessment) 5 years

Staff personnel records (after employment ceased) 3 yearsSalary and wage registers 5 years

Paid cheques and bills of exchange 6 years

Invoices - sales and purchases 5 yearsBank statements and vouchers 5 yearsStock sheets - listed company 6 yearsStock sheets - unlisted company 5 yearsYear-end working papers 5 yearsSales tax and VAT records 5 yearsOther vouchers and general correspondence 5 years

Kindly note that the above list is not comprehensive.

35


Stamp and Transfer Duties

Securities Transfer Tax

In terms of the Securities Transfer Tax Act, which came into effect on 1 July 2008, Securities Transfer Tax(“STT”) is payable on a change of beneficial ownership at a rate of 0.25% of the “taxable amount” ofall listed or unlisted securities.

The “taxable amount” means the purchase consideration on change of ownership (includingcancellation or redemption). If there is no consideration, or the consideration is less than fair value,STT is payable on the market value or the closing price of the securities on the date of the transaction.

“Securities” include a member’s interest in a close corporation.

No STT is payable on the issue of shares.

The cancellation or redemption of a security (including share buy-backs and redemptions) will beregarded as a change in beneficial ownership and therefore subject to STT.

Transfer,Redemption or cancellation of securities will be exempt from STT in certain circumstances,e.g.:

- transfer to an heir or legatee;

- cancellation on liquidation;

- transfer to a PBO;

- transfer of shares in a Share Block Company;

- transfer of shares constituting a transaction subject to transfer duty;

- intra-group transfers in terms of Section 45 of the Income Tax Act; and

- liquidation distribution in terms of Section 47 of the Income Tax Act.

Stamp Duty

Leases of Immovable Property

The Stamp Duties Act, which imposed stamp duty only on leases for periods exceeding five years, has

been repealed with effect from 1 April 2009.

However, stamp duty remains payable on leases of fixed property executed before 1 April 2009 at a

fixed rate of 0.5% on the quantifiable amount (as defined) of the lease. The stamp duty is subject to

a maximum amount equal to 8% of the value of the property.

No stamp duty was payable on leases for periods (including renewal periods) of less than 5 years. A

lease which may continue for an indefinite period was deemed to be for a period of 5 years.

Transfer Duty on Immovable Property

Transfer Duty is levied on the greater of the purchase price or market value on the transfer of

immovable property in the republic. The indirect acquisition of residential property by way of the

acquisition of shares, a member’s interest in a close corporation or a contingent right in a

discretionary trust is subject to transfer duty.

36


37

Exchange Control

Exchange controls are monitored and administered by the Financial Surveillance Department(formerly Exchange Control Department)

Facilities available to South African Residents Discretionary Allowance

The allowances formerly known as travel, gift and maintenance allowances are covered by a singlediscretionary allowance of R750 000 per annum.

The discretionary allowance is available to all individuals over the age of 18 years. It is in addition tothe existing foreign investment allowance described below.

The allowance is available to cover the following:

- Monetary gifts and loans to non-resident individuals.

- Donations to missionaries, religious, charitable and educational bodies.

- Maintenance transfers.

- Travel allowances.

- Study allowances.

Except for monetary gifts and loans, the discretionary allowance does not apply to residentstemporarily living abroad.

Travel Allowances for visits outside the Common Monetary Area (CMA) Adults - the travel allowance forms part of the discretionary allowance referred to above.

Persons under the age of 18 - R160 000 per calendar year.

Travel facilities may be provided in any authorised form. If transferred to a bank account, theallowance may only be transferred to the traveller’s account and not the account of a third party.

Travel facilities not availed during one calendar year may not be carried forward to the followingyear. Travellers proceeding on visits outside the CMA are permitted to export up to R5 000 per personin South African Reserve Bank notes. This is not regarded as being part of the travel allowance.

Alimony Transfers Authorised dealers may permit alimony transfers to non-residents on presentation of a court order.Where an applicant wishes to effect a monthly payment in excess of the amount stipulated in a courtorder, then authorised dealers may approve transfers up to an amount of R9 000 per month over andabove the stipulated amount.

South African Residents Temporarily Living Abroad Such persons qualify for:

- a subsistence allowance in terms of the discretionary allowance as referred to above;

- a subsistence allowance not exceeding R160 000 per calendar year (applicable to childrenunder the age of 18 years);

- exportation of household goods and personal effects and motor vehicles with a maximuminsured value of R1 million.

Study Facilities Foreign exchange study facilities are restricted to permanent residents of South Africa who are takingfull time courses at recognised educational institutions abroad.

The facilities comprise:

- full amount of tuition and academic fees for the academic year transferred directly to theinstitution concerned;


38

- discretionary allowance as referred to above to cover travelling and related costs.

- exportation of household goods and personal effects up to the value of R200 000 per student.

Business Travel Facilities Authorised dealers may approve applications by businesses for omnibus travel facilities for up to R2 million per calendar year for allocation at the discretion of the business. Representatives of thebusiness using this facility also qualify for the travel allowances referred to above.

Foreign Investment by South African Residents Individuals Private individuals over the age of 18 years are permitted to invest an amount of R4 million outsidethe CMA. A tax clearance certificate must be obtained from SARS prior to the transfer of funds. Thesefunds may not be utilised to invest directly or indirectly back into South Africa.

The Reserve Bank will also consider applications by private individuals to invest in fixed property inSADC member countries against submission of a tax clearance certificate.

South African Resident Companies Requests to invest overseas are considered on merit. The investor will be required to motivate that theinvestment will result in a long-term benefit to the South African economy. Similarly, major corporatesmay apply to establish primary listings offshore. The outward investment limit was increased from R50 million to R500 million in October 2009.

Dividends repatriated from foreign subsidiaries are eligible for an exchange control credit. Dividendsdeclared and paid after 26 October 2006 may be utilised for any purposes at any stage, except forloans into the CMA.

Institutional Investors Long term insurers, pension funds and fund managers may invest 20% of total assets offshore.Collective investment schemes and investment managers may invest 30% of the total retail assetsunder management offshore.

Royalties and Licence Fees Agreements by South African companies to pay royalties, licence and patent fees to non-residentsin respect of the local manufacturing of a product are subject to approval from the Department ofTrade and Industry (on behalf of the Exchange Control authorities).

Agreements by South African companies to pay royalties, licences and patent fees to non-residentswhere no local manufacturing is involved, are subject to approval from the Exchange Controlauthorities.

No royalties may be paid to non-residents where the royalties stem from intellectual property initiallydevised in South Africa.

Non-Residents Non-residents may freely invest in the Republic, provided that suitable documentary evidence isreceived in order to ensure that such transactions are concluded at arm’s length, at fair market-related prices, and are financed in an approved manner. Such financing would require priorexchange control approval.

Capital Transactions Proceeds from the sale of assets in South Africa, owned by non-residents (excluding blocked assetsof emigrants), may be remitted abroad.

Dividends Dividends declared by listed companies are remittable to non-resident shareholders. An emigrantshareholder will be entitled to dividends declared out of income earned after the date of emigration.

Dividends declared by unlisted companies are remittable in proportion to percentage shareholdings,subject to certain restrictions. Dividends in favour of emigrant shareholders may be remitted subjectto additional requirements.


Directors Fees

Authorised dealers may transfer directors fees to non-resident directors permanently domiciledoutside South Africa, provided the application is accompanied by a copy of the resolution of theboard of the remitting company, confirming the amount to be paid to the beneficiary.

Management and Administration Fees

Requests for payment of management and administration fees are considered on merit, taking intoaccount the reason for the fees, nature of the services and the basis of calculation.

Emigrants from South Africa

Emigrants qualify for:

- a cash allowance;

- a foreign capital allowance; and

- exportation of certain items.

Cash Allowance

Emigrants qualify for a cash allowance equal to the annual discretionary allowance available toSouth African residents.

Foreign Capital Allowance

- R4 million per single person; or

- R8 million per family unit, less any amount invested in terms of the foreign investmentallowance.

Individuals who have emigrated and who have not fully utilised the authorised foreign capitalallowance, may be afforded additional capital transfers within the overall limits.

Quoted securities may be exported as part of the emigration facilities based on their market value atthe time of utilising the applicable allowance. The relevant securities must be restrictively endorsed.

Exportation of Goods

Emigrants may export household and personal effects and motor vehicles within the overall insuredvalue of R1 million. These goods, other than clothing, must have been in the emigrant’s possession forat least one year prior to emigration.

Further Regulations

- Foreign assets held by an emigrant are not deducted from the settling-in allowance; and

- Emigrants must declare whether any assets were received as donations or gifts within the last3 years or as capital distributions from inter vivo trusts within the last 5 years, prior to the dateof emigration.

Blocked Funds Assets of an emigrant in excess of the above allowances remain blocked in South Africa. They mustbe brought under the control of an authorised dealer and may be released for payment of specifiedinvestments and/or expenses.

Emigrants can, on application, request to transfer blocked assets in excess of the foreign capitalallowance limits, subject to an exit schedule approved at the discretion of the South African ReserveBank. An exit levy of 10% of the amount remitted is charged.

Blocked assets are required to be invested in prescribed assets as determined by the South AfricanReserve Bank.

Certain income from a South African source may be remitted to emigrants. A detailed listing isavailable on request.

Distributions from Estates Bequests and the cash proceeds of and inheritances due to heirs permanently resident outside SouthAfrica may be remitted abroad.

39


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WHAT ARE THE REQUIREMENTS?n Clients with debt of more than R30 000n Minimum gross monthly household income of R8 500n Sufficient equity in your property – minimum property value of R200 000n A maximum bond of up to 75% of the current market value of your property

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income We will need the following:n ID documentn Marriage certificate (if applicable)n Anti-nuptial contract (if applicable)n 3 Months bank statementsn 6 Months bond statementsn 3 Months salary slipsn Latest rates accountn Latest water & electricity account

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In all property transfers there are three distinctive phases. Very rarely are two transfers thesame, but the following phases are common to all of them.

1. The Initial Instruction to the Conveyancer

When an Estate Agent forwards a copy of the contract of sale to the Conveyancernominated to attend to the transfer he will immediately take the following steps:

1.1 He will acknowledge receipt of the instruction in a letter to the relevantagency, undertaking to pay the agent’s commission if the contract confirmsthat the Seller has authorised him to do so.

1.2 If the property is still mortgaged, he will write to each bondholder, requestingits cancellation figures (also known as settlement figures) as well as the originaltitle deed over the property which is usually in the possession of the firstbondholder. The cancellation figures represent the amount the bondholder(invariably a bank) requires to be secured before it will consent to its bondbeing cancelled.

1.3 At the same time he will write to the Seller and Buyer, requesting copies of anydocuments he may require, such as copies of antenuptial contracts, theFounding Statement of any CC involved in the transfer as seller or buyer, theDeed of Trust of any Trust so involved, and any other similar necessarydocumentation he may need to accurately reflect the parties to the transfer.

1.4 He will collect any deposit due and payable if this has not already been doneby the Estate Agent.

1.5 A request will be made to the local Council for clearance figures to obtain arates clearance certificate which he will have to file with his transferdocuments, valid up to the end of the month following registration of transfer.If the transaction affects a sectional title unit he will obtain figures from theBody Corporate.

The second step follows once he has received the cancellation figures and existingtitle deed. These can take up to three weeks to be supplied by each relevantbondholder but, once received, he can effectively proceed to draw his transferdocuments.

2. Signing Documents and Arranging Guarantees

The Conveyancer’s secretary will now draw the Seller’s and Buyer’s transferdocuments and arrange appointments for them to call and sign. A professionalconveyancer will see each client personally and ensure their queries are answered.This may be the only chance each party will have to see him personally. At thesame time the Conveyancer will do the following to expedite the transfer:

41

The Property Transfer Procedure

2.1 He will request guarantees from the bond attorney (the attorney instructed by theBuyer’s bank to register the new bond). If he has been instructed to register the bondhimself (very often the case) he will get the Buyer to sign all his bond documents atthe same time including authority forms for the guarantees he requires which he willissue himself.

2.2 He will obtain payment of his transfer and bond costs from the Buyer.

2.3 He will pay the required amount to obtain his clearance certificate, either from thelocal council or Body Corporate or both.

2.4 He will pay the required transfer duty to the South African Revenue Services andobtain a transfer duty receipt which he also has to lodge at the deeds office.

2.5 If he has not been instructed to cancel the existing bonds, he will forward therequired guarantees to the attorneys appointed by the bank holding the existingbonds over the property to cancel such bonds.

The third phase then follows as soon as the cancellation attorney advises him he hasreceived the bondholder’s consent to cancel its existing bond. In many cases the bank’sattorneys are authorised to sign these themselves to save time.

3. Lodgement and Registration of Transfer

When all three parties - the transfer, bond and cancellation attorneys - are ready to lodgetheir documents, they will arrange to lodge them in the relevant Deeds Office on thesame day, linking them in a batch on their lodgement files. About ten days afterlodgement the documents will be forwarded to the preparation room (known in somedeeds offices as on prep) in other words it is almost ready for transfer.

3.1 Once any minor discrepancies or errors have been rectified, or if there are no notes against his documents, the Conveyancer will put them forward for registration thefollowing day.

3.2 The following day he will be entitled to register the transfer, effectively transferringownership of the property to the Buyer. He may need to delay this if his finances arenot fully in order, or if CC documents have to be registered simultaneously in anotheroffice. He usually has up to five days to register.

The following day he will receive payment of any guarantees issued in his favour for thebalance of the purchase price. He then pays the estate agency its commission, the Sellerthe nett proceeds, and the Buyer any refund that may be due to him.

Invariably both the rates due and cancellation figures will have been inflated to cover theintervening period from issue thereof to registration and, some time later, theConveyancer should be able to refund any overpayment made to the Seller’s bank. Arefund of rates overpaid usually follows many months later. When the title deed comesback from the Deeds Office he will send it to the new bondholder to be held as security.

42

The Property Transfer Procedure

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Financial planning provides one with a method of organizing financial tomorrow’s and isunreservedly about planning for the unforeseen. It empowers one to have theindependence to handle unpredicted events in one’s life.

The following are prime occasions when one really needs to sit down and have a lookat ones total financial portfolio:

- When purchasing a new home;

- Getting married;

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- Getting divorced;

- When you have lost a spouse;

- When you are about to retire;

- When you have started your own business.

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- Income protection or risk assurance against dying or being disabled;

- Goal savings. This will include all financial goals, whether short or long term;

- Retirement savings which is of extreme importance

- Health assurance must meet ones required needs.

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44

The Philosophy of Financial Planning

1. It is recorded that the purchaser is acting for a company to be formed. Thepurchaser :-

1.1 Undertakes to effect registration of a company on the basis that section 35 ofthe Companies Act 1973 is fully complied with;

1.2 Undertakes to obtain adoption or ratification of this agreement by thecompany within seven (7) days after it has obtained a Certificate toCommence Business;

1.3 Undertakes to procure the necessary bank or financial institution guaranteefor payment of the balance of the purchase price complying with the termsof clause * within seven (7) days of the company adopting or ratifying thisagreement, should the institution which issued the guarantee in terms ofclause * require a new guarantee to be issued as a result of the adoption orratification of this agreement by the company;

1.4 In the event of the adoption and ratification referred to above binds himselfas surety and co-principal debtor with the company for the due and faithfulobservance by the company of all the terms, conditions and stipulations of thisagreement;

1.5 Undertakes that in the event of registration of the company and the obtainingof its Certificate to Commence Business not being effected within forty five(45) days of the date of signature of this agreement by the purchaser or withinsuch extended period as may be allowed in writing by the seller, or should thecompany, when registered and entitled to commence business, fail to adoptand ratify the terms of this agreement within the period provided for herein, hein his personal capacity will accept transfer of the property and take over thepurchase of the said property and pay the purchase price as if this agreementhad been made in his personal capacity.

NB “Trust

Please note it is not possible for a property to be purchased by a trust which has notyet been registered, as any contract entered into by a trustee who has not beenformally appointed by the Master of the High Court is void in terms of the TrustProperty Control Act and cannot subsequently be ratified”.

Please NoteThe new Companies Act, 71 of 2008 will be applicable in the latter half of 2010.

46

Formation of a Company

1. It is recorded that the purchaser is acting for a close corporation to be formed. Thepurchaser accordingly :-

1.1 Undertakes to effect the registration of a close corporation on the basis thatsection 53 of the Close Corporations Act no. 69 of 1984 is fully complied with;

1.2 Undertakes to obtain the ratification or adoption of this agreement by theclose corporation within 7 (seven) days after its incorporation;

1.3 Undertakes to procure the necessary bank or financial institution guaranteefor payment of the balance of the purchase price complying with the termsof clause * within seven (7) days of the close corporation adopting or ratifyingthis agreement, should the institution which issued the guarantee in terms ofclause * require a new guarantee to be issued as a result of the adoption orratification of this agreement by the close corporation;

1.4 In the event of the adoption and ratification referred to above binds himselfas surety and co-principal debtor with the close corporation for the due andfaithful observance by the close corporation of all the terms, conditions andstipulations of this agreement;

1.5 Undertakes that in the event of the registration of the close corporation notbeing effected within 45 days of the date of signature of this agreement bythe purchaser, or within such extended period as may be allowed in writing bythe seller, or should the close corporation when registered fail to adopt andratify the terms of this agreement within the period provided for herein, he, inhis personal capacity will accept transfer of the property and take over thepurchase of the property and pay the purchase price as if this agreement hadbeen made by him in his personal capacity.

NB “Trust

Please note it is not possible for a property to be purchased by a trust which has notyet been registered, as any contract entered into by a trustee who has not beenformally appointed by the Master of the High Court is void in terms of the TrustProperty Control Act and cannot subsequently be ratified”.

Please NoteThe new Companies Act, 71 of 2008 will be applicable in the latter half of 2010.

47

Formation of a Close Corporation

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Afrikaanse Handelsinstituut Tel (012) 348-5440 Fax (012) 348-8771

The Arbitration Foundation of South Africa (ADRASA) Tel (011) 320-0600 Fax (011) 320-0533

Association of Advertising Agencies Tel (011) 781-2772 Fax (011) 781-2797

Association of Arbitrators Tel (011) 884-9164 Fax (011) 884-9167

Blue Door Tel 0861 112 115 Fax 086 532 4227

Board of Tariffs and Trade (BTT) Tel 086 184 3384 Fax 086 184 3888

Building Industry Federation of South Africa (BIFSA) Tel (011) 315-1010 Fax (011) 315-1644

Business Partners Fax (011) 642-2791

The Department of Trade and Industry (DTI) Tel 086 184 3384

Development Bank of Southern Africa Tel (011) 313-3911 Fax (011) 313-3086

Eskom Tel (011) 800-8111 Fax (011) 800-4642

Estate Agency Affairs Board Tel (011)731-5600 Fax (011) 880-9831

Franchise Association of Southern Africa Tel (011) 615-0359 Fax (011) 615-3679

Industrial Development Corporation of SA Limited (IDC) Tel (011) 269-3000 Fax (011) 269-3116

Institute of Administration and Commerce Tel (021) 761-6211 Fax (021) 761-5089

Institute of Bankers in SA Tel (011) 481-7000 Fax (011) 484-8716

Institute of Business Studies Tel (011) 403-2900 Fax (011) 339-5393

Institute of Directors Tel (011) 430-9900 Fax (011) 444-7907

Institute of Realtors of South Africa - National Tel (021) 531-3180 Fax (021) 531-2931

The Johannesburg Chamber of Commerce and Industry Tel (011) 726-5300 Fax (011) 482-2000

The Law Society of the Northern Province Tel (012) 338-5800 Fax (012) 323-2606

Masters Builder Association - Gauteng (MBA) Tel (011) 805-6611 Fax (011) 805-6718

PA Group Tel (011) 476-9002 Fax (011) 478-1856

Public Relations Institute of Southern Africa Tel (011) 326-1262 Fax (011) 326-1259

Receiver of Revenue Tel 080 000 7277 Fax (011) 225-9013

Registrar of Companies and Close Corporations Tel 086 184 3384

SA Bureau of Standards (SABS) Tel (012) 428-7911 Fax (012) 344-1568

SA Chamber of Business (SACOB) Tel (011) 446-3800 Fax (011) 446-3804

SA Institute of Building Tel (011) 234-7877 Fax (011) 234-8354

SA Institute of Valuers Tel (012) 342-9056 Fax (012) 342-7574

SA Property Owner’s Association (SAPOA) Tel (011) 883-0679/83 Fax (011) 883-0684

49

Useful Contacts

real estate guide 2010

Real Estate

680r0 r

monthly repayment

repayment terms page

bond repayment factorspage

jhb northwest

eastern cape

western cape

reduced repayment terms