It is anticipated that there will be renewed interest in the
purchase of property in South Africa after the World Cup.
There are virtually no restrictions on the purchase of property
by foreigners, and the terms of a sale agreement would be no
different. Foreigners may not, however, in terms of exchange
control legislation, take out a bond for more than 50 percent of
the purchase price, i.e. borrow more than 50 percent of the
purchase price from a local bank.
Upon resale, funds introduced into the country with a view to
purchasing the property can also be transmitted to its source,
together with the profits made upon resale.
It is advisable that both spouses sign a sale agreement in the
event of a foreign marriage, as our Deeds Office will not register
a transfer unless both spouses sign the transfer documents. This
may lead to an anomaly in our law, as in terms of their foreign
marriage, the one party may conclude a perfectly valid sale
agreement yet be unable to take transfer of the property without
the other spouse's consent.
This situation often leads to delays or even a cancellation of
the sale, as spouses are not always resident in South Africa, and
in many instances, spouses are estranged. In such instance, it may
be advisable for the foreigner to purchase the property in the name
of a company to be formed, and to take transfer of the property in
the name of the company rather than in his/her personal name.
Transfer documents must either be signed by a notary public or
at the South African embassy of that country and this may cause
A withholding tax of 5 percent will also be payable upon
transfer of a property for a price exceeding R2million in respect
of Capital Gains Tax.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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As a developing country, Nigeria's real estate sector is evolving at a tremendous pace. Governments at all levels are more aware of the role of real estate development on the growth of their respective territories.
In principle, when the parties agree to arbitrate, they shall be
bound by that agreement. It should therefore follow that when a
party initiates arbitration proceedings, the other party - the
respondent – will avail itself of the opportunity to present
its case and participate in the proceedings.
Many standard form contracts contain provisions limiting the overall liability of the contractor, upon which a contractor unfamiliar with UAE law may place mistaken reliance.
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