ACQUISITION OF IMMOVABLE PROPERTY BY FOREIGNERS

TO ALL ESTEEMED BUSINESS PARTNERS

Number

31/2016
Before providing a decisive answer on the question as to whether a foreigner may acquire immovable property in the Republic of South Africa one must distinguish between a “foreigner”, defined as “an individual who is not a Citizen” and an “illegal foreigner: defined as “a foreigner who is in the Republic of South Africa in contravention of the Immigration Act 13 of 2002”.

Nothing in our law prohibits “a foreigner” who is legally in South Africa from acquiring immovable property. However section 42 of the Immigration Act prohibits any person from aiding, abetting, assisting or enabling an “illegal foreigner” in the letting or selling or in any manner making available any property in the Republic to such foreigner. In terms of section 49(6) of the Act, any person who contravenes the said provisions of section 42 shall be guilty of an offence and liable on conviction to a fine or imprisonment not exceeding five years.

Conclusion

In summary nothing prevents a “foreigner” from acquiring immovable property in the Republic, but an “illegal foreigner” is prohibited in terms of section 42 of the Immigration Act, from acquiring or letting of immovable property. All persons involved in property transactions, inclusive of estate agents, must take cognizance of sanction imposed in the Immigration Act of 2002.For any queries please contact our property law division at the details below:

Allen West
Tel: 012 425 3549
awest@macrobert.co.za

Daleen Loubser
Tel: 012 425 3489
dloubser@macrobert.co.za

Disclaimer: This newsflash is for general information only and should not be used as legal or professional advice. No liability can be accepted for any errors or omissions, nor for any loss or damage arising from reliance and any information therein