FILTERS:

Transfer duty receipts

19 April 2012

Alterations and errors in transfer duty receipts
Examiners and practitioners, alike, are uncertain as to what information must be contained on a transfer duty receipt and which alterations will not be accepted by a Registrar of Deeds, unless same has been referred back to SARS. It is hereby endeavoured to clarify the situation to prevent unnecessary rejections.

Information that must appear in transfer duty receipts
SARS has indicated the following information must appear in a Transfer Duty Receipt:

  • The full name and identity number / registration number of the parties.
  • The full date of transaction.
  • Purchase price, if property was sold (not required in words and figures).
  • Property description (property in a sectional title scheme must be described by referring to the number of the section, name of the scheme, and the sectional plan number. No reference need be made to the undivided share in the common property. The exclusive use area must be described by referring to the exclusive use area, for instance G 10, name of the scheme, and the sectional plan number).

Errors in transfer duty receipts not acceptable for registration
Examiners must not accept transfer duty receipts on which errors of the following nature occur. The transfer duty receipt must be rejected and the conveyancer must apply for a new receipt containing the correct particulars:

  • Where there is a clear difference between a name(s) / identity number / registration number cited in other documents (i.e. power of attorney) and the transfer duty receipt.
  • Where there is an error in the property description. Citing incorrect Erf numbers or the names of places, e.g. Erf 345 instead of Erf 435, and Erf 345 Athlone instead of Erf 345 Cape Town, must not be accepted. Errors with regard to the incorrect portion, e.g. portion 1 instead of portion 11 or the remainder of a portion 1, etc. must also not be accepted,
  • Where reference to a personal servitude or praedial servitudes has been omitted.
  • Where the date of the transaction is incorrect.
  • Where the purchase price on the transfer duty receipt does not concur with the purchase price referred to in the power of attorney.
  • A deposit transfer duty receipt is not acceptable for registration purposes. A transfer duty receipt on which the word “Deposit” has been deleted, must not be accepted as a valid Transfer Duty Receipt.

Errors in transfer duty receipts capable of clarification with a conveyancer's certificate
A certificate by a conveyancer stating the correct position must be accepted with regard to transfer duty receipts on which errors of the following nature occur:

  • Where minor errors in the spelling of names i.e. Louww instead of Louw or Gustaf instead of Gustaff, etc. have been made.
  • Differences with regard to the last seven digits in an identity number.
  • Where minor errors in the spelling of a township / farm / scheme name, etc. have been made.
  • Where incorrect or no reference has been made to the extension of a township, e.g. Nelspruit Extension 2 (or Nelspruit) instead of Nelspruit Extension 12.
  • Where incorrect or no reference has been made to the registration division of a farm / agricultural holding.
  • Where incorrect or no reference has been made to the extent of a property.

Conclusion
It is trusted that the above guidelines will prevent unnecessary rejections as same is based on CRC 9 of 2009 which was drafted after in depth discussions were held with SARS.

Allen West
Deeds Training
Pretoria

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