New ruling came into effect in December 2003



The Receiver of Revenue has closed the transfer duty “loophole” with respect to tripartite agreements, according to Cape Town attorneys Buchanan Boyes Smith Tabata. Prior to December 12 last year a genuine tripartite agreement in terms of which there was a complete cancellation of the original agreement of sale between the seller and the original purchaser and a complete cancellation of the agreement of sale between the original purchaser and the new purchaser and a new agreement between the seller and the new purchaser would not have attracted double transfer duty. However, the attorneys say, that as from December 12 2003 a tripartite agreement in terms of which the original purchaser received a consideration for the cancellation will now result in double transfer duty being paid on both the original agreements of sale and the new agreement of sale. The Receiver has advised Buchanan Boyes Smith Tabata that he will be putting out an explanatory memorandum shortly. The Property Professional On-line Edition 76 Article: 9 February 2004 Rodney Hayter email: hayter@icon.co.za Subscribe for your weekly property news updates brought to you by www.rodneyhayter.com, KwaZulu Natal's premier property news website.