TRANSFER COSTS / FEES SPECIFICALLY RELATED TO DECEASED ESTATES

Transfer costs are paid by the Purchasers (“Transferees”) in the transfer process, although it is common practice and the prerogative of the Seller (“Transferors”) to appoint the Transferring Attorney in the matter.

If the Seller of property happens to be a deceased estate, meaning that Executor / Executrix sells the property in his or her capacity as such, the party purchasing the property is still responsible for the payment of the transfer costs, notwithstanding who the Transferor is.

It is, however, different when a deceased estate is the Transferor and an heir of the estate is the Transferee. In this instance, as it is a transfer according to the last will and testament of the deceased or according to the Intestate Succession Act, the Transferor is the estate and the estate is liable to cover the transfer costs. One must, however, also specifically note that this is only the case, should there be enough funds in the deceased estate to cover such Transfer Costs.

Usually included in the Statement of Account of the Transfer Fees is Transfer Duty. Transfer Duty is the tax payable to SARS and is payable by the Purchaser according to a sliding scale, based on the Purchase price over R1 million. However, where a property is transferred from a deceased estate into the name of an heir or beneficiary, the heir or beneficiary is exempt from paying transfer duty on property inherited from a deceased estate, regardless of the nature of the relationship with the deceased and irrespective of whether the deceased died without a valid will.

Should you have any questions, please book a consultation and we will happily assist.