Real Estate Investor Magazine South Africa December / Jan 2016 | Page 10

Q&A ASK THE EXPERTS Question I own three properties, including then one I live in. I want to register a Trust and transfer the other two properties into it. What factors must be considered when planning on transferring fixed properties into a Trust? What is the legal position regarding trustee rule making? What can property owners in a sectional title scheme do about trustees making unpopular rules? Hein Klokow Anton Kelly Director at Klokow & Viljoen Attorneys answers: W hen planning to transfer your fixed property into a trust, one should consider, inter alia, the transfer costs, existing bonds and capital gains tax (CGT) implications To transfer fixed property, you will be liable to pay transfer duty to SARS and conveyancing costs to the transferring attorney assisting you in the transfer of the property into the Trust. The transfer costs are calculated as detailed below Rate: Value of Property R0.00 – R600,000 0% R600,000 – R 1M 3% on the value above R600,000 R1M – R1.5M R12,000 plus 5%on the value above R1M Ask The Property Experts click here 8 of Paddocks answers: A sectional title scheme must be run in accordance with the provisions of the Sectional Titles Act and the set of management and conduct rules prescribed in the regulations, unless the developer at the opening of the register for the scheme changes these rules. Once the scheme is up and running, only the body corporate can change the rules or make new rules, through unanimous resolution for management rules and by specific resolution for conduct rules. Two basic principles can be applied to trustee policies; they must be reasonable and made to achieve an appropriate end; and owners can give directions to trustees and restrict their activities. So if enough owners don’t like a trustee policy, they can get it changed at a general meeting. DO YOU HAVE A PROPERTY QUESTION YOU WOULD LIKE ANSWERED BY OUR EXPERTS? If so, post it on ASK THE EXPERTS on www.reimag.co.za or email [email protected] DEC/JAN 2016 SA Real Estate Investor www.reimag.co.za