Araujo Attorneys

Q: With emigration on the rise, what does this mean for sellers and the property market?

A: Recent statistics show that 17,7% of all house sales in KZN currently are due to emigration. If you are considering leaving RSA and selling your property, there are a few points to consider:

1. With more properties on the market, sellers are having to be more discerning about pricing their property right to ensure a sale. Listen carefully to the advice of an experienced estate agent and beware of pricing yourself out of the market.
2. Once you have decided to put your home on the market, it is imperative to place notice on your bond with your bank. Banks require 90 days’ notice before they will cancel the bond, failing which penalty interest is charged. The notice therefore needs to start running as soon as possible and if the 90 days lapses before a sale is in place one simply places notice again with the bank to ensure you do not have to pay any penalties.
3. Watch out for Withholding Tax. This is imposed on sellers who have left the country by the time the property transfers (and whose homes fetched a price in excess of R2- million) and can be a nasty surprise if you haven’t fully acquainted yourself with the implications. At Araujo Attorneys we have an in- house chartered accountant who advises clients so that they are fully equipped with the knowledge they need to make the right decisions. And, this advice to a seller is free.
4. Once a property is sold by a seller looking to leave the country, those funds will need to be moved abroad. This too is a process we can guide you through to ensure there are no delays for you in accessing your funds internationally.