OWNERSHIP OPTIONS

Full Title
Full title describes the transfer of full ownership rights to the buyer.
• House
This word is used to describe a normal house.
• Cluster home
This is a freehold property, usually in a development of similar houses. The group of houses usually has limited
access and good security. Each house is individually owned and there is no levy to be paid, unlike sectional title.
• Residential property used for business purposes
The property will be regarded as residential property provided that no structural changes are made which may
affect its description as a domestic residential dwelling.
• Smallholding
A property is classified as a smallholding if it is situated in or within a 150km radius of a built-up area, does not
exceed 20 hectares, and is able to be connected to a local authority water supply or has a borehole.
There must be a home on the property and your main source of income must not be farming on that property. If the
smallholding is larger than 8,56 hectares, or if other properties in the area are much larger than 8,56 hectares, you
will be charged an interest rate of 1,5% above the qualifying home loan rate.

Sectional title
This describes separate ownership of a unit (section) within a complex.
• Semi-detached house
This describes two houses that are attached to one another. They may be on separate stands and bonded
individually as ordinary houses. They can also be on one stand and bonded together under one bond. The other
alternative is that they are sold as separate units in a sectional title development.
• Townhouse or flat
A townhouse or flat unit must be in an approved sectional title complex. The complex must only contain residential
units.

Ownership and Tax
Certain property finance and ownership decisions have legal and tax implications. Here are some considerations
when planning your property transaction. For more information or to discuss a particular question you have, call a
Bond Gallery consultant.

 

Property ownership options and tax implications
In whose name should the property be purchased?
The party in whose name the immovable property is to be registered must appear as the purchaser in the Deed of
Sale. If you wish to register the property in the name of a close corporation or a company, which has not yet been
registered at the date of signature of the Deed of Sale, it is in order to state that you are purchasing in your capacity
as a trustee of a close corporation or company to be formed.

What are your options ?
You may ask for the registration of transfer of your property to be effected in the name of either:
• Yourself, or you and your spouse
• A close corporation or company
• A trust, or
• A partnership