SALE OF MORE THAN ONE PROPERTY

More often than not it occurs that a purchaser acquires more than one property from a seller and the question begging an answer is whether one must enter into different deeds of sale and deeds of transfer, or can one enter into one contract of sale, however, different deeds of transfer
 
There is no prohibition for the sale of more than one property in a single sale agreement. When doing this, the agreement must set out what amount of the purchase price is allocated to which property. This is required for transfer duty purposes. It is also recommended that the agreement provides for what will happen if it transpires that one of the properties cannot be transferred. For example, if one property is subject to an Interdict that prevents transfer - will the sale of the remaining property lapse, or will the purchase price be reduced?
 
Where all properties are transferred simultaneously in one deed of transfer to the purchaser the full purchase price of all the properties will be disclosed. However, should the purchaser elect to prefer a separate title deed for each of the properties, the deed of transfer must disclose that the confirmed purchase price includes the purchase of the other properties concerned, as well as the purchase price or value of the property being transferred. The latter is required for purposes of calculating the deeds office registration fee for the property being transferred

For any queries please contact our property law division at the details below:

Tel: 012 425 3549