Lake Properties Lake Properties
Lake Properties Lake Properties
Selling a house from a deceased estate in South Africa is a multi-step legal process that requires the involvement of the Master of the High Court, SARS (South African Revenue Service), and a conveyancing attorney. Below is a detailed breakdown of the required documents and steps to complete the sale.
1. Estate Administration Documents
a) Letter of Executorship or Letter of Authority
- The estate must first be reported to the Master of the High Court in the area where the deceased lived.
- If the estate is valued at R250,000 or more, a Letter of Executorship is issued, appointing an executor.
- If the estate is valued at less than R250,000, a Letter of Authority is issued, appointing a Master’s Representative.
- Only the executor (or Master’s Representative) has the legal right to sell estate assets, including the property.
b) Death Certificate
- This is obtained from the Department of Home Affairs and is necessary to prove the person’s passing.
c) Will and Testament (if applicable)
- If the deceased had a valid will, the executor must follow its instructions.
- If there is no will, the estate is distributed according to the Intestate Succession Act, meaning heirs are determined by law.
2. Property-Related Documents
a) Title Deed
- The title deed is proof of property ownership.
- If the original is lost, a certified copy can be obtained from the Deeds Office.
- If the property was bonded (mortgaged), the bank will hold the title deed until the bond is settled.
b) Rates Clearance Certificate
- Issued by the local municipality, confirming that all rates and taxes on the property are fully paid.
- A property cannot be transferred without this certificate.
c) Compliance Certificates (Legally Required)
Before selling the property, the following compliance certificates are needed:
- Electrical Compliance Certificate (ECC) – Confirms that the electrical wiring meets safety standards.
- Beetle Clearance Certificate (Common in coastal areas) – Confirms no wood borer or termite infestations.
- Plumbing Compliance Certificate (Cape Town requirement) – Confirms that plumbing and water systems comply with city regulations.
- Gas Compliance Certificate (if gas installations exist) – Ensures gas appliances are safe and compliant.
3. Financial & Tax Documents
a) Estate Duty Clearance Certificate (If Applicable)
- If the estate’s total value exceeds R3.5 million, estate duty (inheritance tax) is payable to SARS.
- The executor must obtain an Estate Duty Clearance Certificate from SARS to prove that all taxes have been settled.
b) Transfer Duty or Exemption Certificate
- If the property is inherited, there is no transfer duty, but an exemption certificate from SARS is needed.
- If the property is being sold to a third party, normal transfer duty applies, payable by the buyer.
4. Sale Agreement & Conveyancing Process
a) Offer to Purchase (OTP)
- The executor signs the Offer to Purchase agreement with the buyer.
- The agreement should include standard property sale terms and conditions.
b) Conveyancing Attorney Handles Transfer
- A conveyancing attorney facilitates the legal transfer of the property.
- They submit documents to the Deeds Office and ensure all legal steps are followed.
c) Final Transfer & Payment
- Once all legal requirements are met, the property is transferred into the buyer’s name.
- The estate (or heirs) receives the sale proceeds, and the estate can be finalized.
Important Considerations
- Estate must be wound up first – Property sales cannot proceed until the Master of the High Court approves the liquidation and distribution account (L&D Account).
- Heirs must consent – If the property was left to heirs in a will, their consent may be required before a sale.
- Bond cancellation – If the deceased had a mortgage, the bank must be informed, and the bond must be settled before transfer
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