TRANSFER DUTY TAX BREAK
Previously if a buyer bought a unit for instance in the Michael Angelo Towers in Sandton and the unit was part of a rental pool such buyer would be liable to pay transfer duty on the purchase price in respect of the unit bought if VAT was not payable.
Fortunately the situation has now been changed by way of a new transfer duty exemption exempting the purchaser from paying transfer duty when a sectional title unit, share block and/or time share is purchased and such sectional title unit share block and/or time share is part of a rental pool.
It must be understood that there must be a properly constituted rental pool scheme in place which means that various owners will belong to such rental pool in terms of which the rental pool is put together and managed by a dedicated person and/or company on behalf of the owners of such properties.
Keep the above in mind when you trade in sectional title units, share blocks and/or time share and such unit is part of a rental pool. You can now advise your purchasers that the purchase will not attract any transfer duty.