Q&A: The Conveyancing Process

Private Property South Africa
Karien Hunter

Common problems and often-asked questions about the Conveyancing process and Property Transfers.

(Submit your question to news@privateproperty.co.za for consideration in our next article.)



I have put in an offer to purchase a [commercial property][1] from a VAT Vendor and was advised that I would have to pay VAT at 14% on top of the purchase price. I am concerned that I had bought the property in the name of a company or cc to be formed, and obviously the CC which I am presently forming, is not as yet registered for VAT. Would I be able to claim back the VAT after transfer? The deal is also structured as an instalment sale agreement, so I will be paying the purchase price in a couple of instalments, whereafter transfer will take place.

It is common practice to purchase a commercial property in the name of a CC or company that has not as yet been formed. In terms of section 9 (3) (d) of the VAT Act VAT is to be paid on the date that transfer takes place, or when payment or part payment is received, whichever is the earliest. This means that as long as the purchasing cc is registered for VAT at the time of transfer, you will be able to claim back the VAT paid. Please bear in mind however where the purchase price is paid in instalments, VAT must be paid on every instalment, in every two month VAT cycle on all instalments received by the Seller.


I recently purchased a newly renovated home and although I qualify for a bond, the bank has refused to grant me a bond, as the seller was unable to produce an NHBRC enrolment certificate. Is there any way around this?

You need to advise the bank that this is not a newly built home, but a renovated home. In terms of Section 18(3) of the Housing Consumer Protection Measures Act, 95 of 1998, the bank is prohibited from financing the acquisition of a newly built home from a home-builder, unless the home builder is registered with the NHBRC and the home is duly enrolled. This does not however apply in respect of an existing home that has been renovated, even though the renovations may have been extensive. The bank may be prepared to waive the requirement.

Karien Hunter is a respected property lawyer, and the founder of

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