It happens from time to time that joint owners of immovable property need to dissolve or amend their ownership structure. To do this, they may sell the property to a third party, or one party can take transfer of the other party’s share in the property.
In this series, we will discuss the more common half-share (50%) transfer, although the same principles apply regardless of the shareholding being transferred, whether 25%, 33.3%, 75%, or any other percentage. A formal sale agreement must be drafted between the parties where the relevant share in the property is sold from one owner to another. The purchase price must be market related, and the sale agreement must clearly stipulate this market-related value.
In all respects, the normal conveyancing processes applicable between unrelated parties will still apply. This means that the seller will remain responsible for the payment of advance rates and taxes, advance homeowners’ association or sectional title levies, as well as mortgage bond cancellation costs. Similarly, the purchaser will remain responsible for the payment of transfer costs, including transfer duty and mortgage bond registration costs.
