Buying or selling a home and moving to another property is one of the our experiences and best of breed practices into a single powerful major life stressors, even more so if you don't have all the requisite marketing and sales plan that is innovative, transparent, upfront and knowledge and do's and don'ts of the property game at your fingertips. honest, ensuring that you benefit in the end. Now that you've made the decision that it's time for a change, where do you start regarding selling your property and managing all the necessary Essentially, your Leapfrog agent plays a vital role between you, the seller property transactions in the process? and prospective buyers, managing the legal, financial and marketing

logistics involved in the process. Your Leapfrog agent has a wealth of Follow our handy tips... knowledge when it comes to sales techniques, various financing options, ?First steps valuation methods and all the relevant property laws and regulations. ?Why you should use Leapfrog Your Leapfrog agent will also have a solid understanding of your local ?You’ve choosen a Leapfrog agent. Good choice! property market and will always act in the best interests of the client with ?A firm offer is put on the table due consideration to the interests of the other parties involved. In fact, ?What the…? you'll find dealing with a Leapfrog agent is an exercise governed by the

highest ethics, honesty and code of professional conduct. We're sure you'll find that selling your home through Leapfrog truly is a pleasure!

You've chosen a Leapfrog agent. Good choice!Once you are happy with your marketing plan and understand all your rights and obligations as explained by your Leapfrog agent, you can go ahead and give instructions to our agent to begin marketing your property to prospective buyers by signing the mandate. Many people out there don't fully understand the necessity for a signed mandate – it is an essential document that protects both the interests of you, our client, and the Leapfrog agency. Without a signed mandate, no professional agent will run the risk of marketing your property at considerable expense if there is a chance you will suddenly award the sale of your property to a competing agency. Furthermore, a mandate protects you by ensuringyou get the level of service you require on the sale of your property. As soon as the mandate has been signed, the property will be presented to all Leapfrog agents for their review so that they can provide input into the marketing of your property. For more information about the different types of mandates and what they entail, read the additional info in the Q&A provided.

Your Leapfrog agent will prepare the advertising materials, for all available marketing channels and start the marketing process. It is absolutely critical that you play your part in this process by making sure your property is well presented by keeping it neat and tidy. First First stepsimpressions are important so make sure your house is appealing by For starters, you need to do your research. Choose an agent who has the getting rid of the clutter, doing a good spring clean beforehand and trust of the community, and is visible and active in your area. Typically, making your property appear as spacious and well-maintained as you would invite an agent or number of agents into your home to do an possible. This way, you are more likely to get a buyer interested in a evaluation on your property. At this point the agent will review the home that effectively sells itself. features of your property, take photographs, list any additional

information about the property that you volunteer that will help in the A firm offer is put on the table!agent determining a fair market value for the property. The moment of truth arrives. This is where you hope your agent has a number of offers for your property so you have the luxury of choice. You The agent should then return as soon as possible with a comprehensive are not required to accept an offer that does not meet your valuation and marketing plan for your property. The agent will discuss expectations. It is between you and your agent to determine whether with you the reasons for arriving at the estimation and then run through the buyer is open to further negotiation. the exact marketing plan that they will follow to get your property sold. Once you are satisfied, you are required to accept the offer in writing At point make sure you raise any questions you have regarding the sale which creates a contract of sale between you and the buyer. Assuming of your property and get clarity before proceeding. This is essentially all goes well with the buyer's application for finance, your house is then part of your research when it comes to choosing an agent and agency to officially sold. What a pleasure! manage all the logistics entailed in selling your home. .

What the…?Why you should use Leapfrog...For the definition of some typical real estate terms and phrases that may You will benefit by selling your home or property with Leapfrog as we've come up during your selling process, please refer to the terms and set our sights on shaking up the real estate industry - from the way that conditions page and also the questions and answers pages to answer we reward and incentivise our agents and business partners to the way some of the questions that you may have.we approach the sales and marketing of our clients' properties. We blend

PREPARING TO SELL

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Why is Accurate Pricing Important? At the same time, higher costs of living, increases in costs such as Anyone who understands simple economics will know that price is a electricity and growing household running costs in particular have variable of demand and supply. Where demand exceeds supply it results resulted in some homeowners no longer being able to afford their in the price being driven up. The reverse is true where oversupply and properties – resulting in an increase in available properties on the lowered demand will drive prices down until the price meets the market market. This has created an environment where there is an abundance expectation. This is no different in the property market. During the boom of properties for sale but a much smaller pool of “qualified buyers”. In times, demand for property exploded, there was not enough supply of many instances, homeowners looking to make an unreasonable profit good quality homes which resulted in sellers getting significantly more who fight against the better recommendations of their agent and try to for their property. And then the worst economic recession in 30 years inflate the asking price for their property will struggle to sell their struck. So what does this mean for the property industry and those properties in an increasingly competitive environment where qualified looking to sell in current market conditions? buyers really are spoilt for choice.

Getting the pricing right on your property is the result of years of experience on the part of your agent and a solid understanding of the market conditions generally as well as specific to the area.

Advice when determining the selling price:?Serious buyers in the current market conditions are looking for

bargain properties and now have the luxury of choice. Buyers very soon become knowledgeable about what types of properties are available in their price range and an unreasonable asking price only serves to discourage any potential buyers from even considering your property.

?A property that is correctly priced and actively marketed by your agent will spend less time on the market and will attract the right buyer. They are also far less likely to talk your price down if you have priced it correctly from the start.

?Buyers purchase by comparison and if a property is priced way above similar competing properties, buyers will either discard the idea of making an offer at all or make an offer far below what the property is worth.

?An over-priced property will inevitably stay on the market for too long. It is advertised over and over and soon becomes over-exposed, and still not sold. The logical next step is either for the seller to reduce the asking price over a period of time, or hold out until the market changes or inflation catches up and the inherent value of the property increases - which is not going to happen quickly by any With global economic pressures, the National Credit Act and the stretch of the imagination.stringent lending criteria of financial institutions, it is significantly harder

?As time passes by, a buyer will assume that the Seller is now today for an individual to acquire property finance – the direct result of desperate and again the Seller is faced with low offers. All that time, this is that while there has been evidence of many willing buyers, the effort, expense, emotion and in some cases inconvenience, only to number of able buyers has decreased significantly, directly impacting reduce the price and start the process all over again!on demand.

ACCURATE PRICING

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2008 saw a dramatic change in the property market. The introduction same time. of the National Credit Act (NCA) and the energy crisis played a huge role in this change, along with a total collapse of the world financial markets South Africa's residential property outlook is looking decidedly more that is globally seeing markets still struggling to recover from. The result positive with a number of factors culminating to inject renewed has been a massive fallout in the property market and strict lending confidence in the market, and the effects are being felt by estate agents criteria imposed by banks, with loans being difficult if not impossible to who are seeing a steadily growing number of qualified buyers entering access without at least 10% deposits from the applicant. So what does the market, significantly up when comparing the first six months of 2010 this all mean for sellers in today's market conditions? with the last six months of 2009.

Sales are increasing steadily and the number of buyers is definitely Some history to put things into perspective starting to outstrip supply in many areas throughout Leapfrog's 50-plus Growth in the middle segment slowed down to 11% in Dec 2007, with franchise catchment areas. the average house price at R964 000. This was the lowest price growth in eight years. Growth in house prices:- Slow price growth ahead in 2011?32% in 2004?22,6% in 2005 The average house price in South Africa according to ABSA figures is now ?15,2% in 2006 R1,016,133. This is a negligible 0.04% growth v December 2010 and ?14.5% in 2007 down v Jan 2010, which was R1,027,480.This gives you an idea of how ?3.97% in 2008 the January price fits in with the bigger long term picture.?-0.32% in 2009?6.75% in 2010 ** ABSA has predicted a 3% nominal house price rise for the year, and it will

be interesting to see whether this forecast materialises. We expect to see negative YOY price growths this year until June/July 2011, given the price surge we saw in the first half of last year, before coming back into YOY growth again in the second half.

If ABSA predicted 3% growth for the year is to be realised, the second half of the year will need to see high single digit growth YOY to counteract the slow start to the year. The forecast prices for the remainder of the year to get to an annual 3% growth v last year. Unless we see better figures in Feb/March/April (eg a steady 0.8%-1.0% month on month growth) it could prove a stretch to get to a 3% nominal growth this year. Professional agents will be able to work out realistically what a buyer will qualify for in terms of a loan, and save a lot of time and effort searching for properties within a price range that a buyer would simply not qualify for. 100% bonds still remain elusive and for now buyers will still need to put in at least 10% equity in the form of a deposit.

If you need to sell your current property before you can buy another one, it is highly recommended that you put your property on the market first and then start your house hunting when a firm buyer is in place.

Latest Stats on why home owners are selling:-?21% are downscaling due to financial pressureSo what is happening now??17% are downscaling in line with life stagesThe fact remains that while there has been a lot of doom and gloom ?8% changes in family structures – death, divorce, marriagearound the fall in the property market, globally South Africa is the best ?9% are emigratingperforming housing market in the world over the long term according to ?9% were relocating in South Africathe latest figures from British news magazine, The Economist. The ?18% were upgradingmagazine's global house price index shows that SA house prices rose by ?12% were moving for safety and securitya cumulative 418% over the past 12 years, far outstripping any of the ?6% were moving closer to work or amenitiesother 20 housing markets tracked by the index. The next best performers ?Average life cycle of a property is 3.45 years were Australia (181%), Britain (175%) and Spain (167%) over the

THE REALITIES OF SELLING IN TODAY'S MARKET

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** Economic data source from http://housepricesouthafrica.com/

The process for a property transfer in South Africa is fairly long and often of these cancellation figures, he existing bondholder will supply the confusing for the uninitiated. There are a number of things that happen outstanding amount required for the cancellation of the bond and behind the scenes which are managed by a number of different role simultaneously instruct the attorneys to attend to the cancellation players. As a seller, it is important that you understand the process and thereof. At the same time the existing bondholder will also forward the who is involved. The following is an outline of these stages to help keep Title Deed which was kept by them as additional security to the you in the loop. cancellation attorney.?Offer to purchase?Bond application Clearance certificate?Instruction to the transferring attorney At the same time, the transfer attorney will apply for a Rates Clearance ?Cancellation figures Certificate from the local municipal authority or Body Corporate. Once ?Clearance certificate any outstanding balances are calculated, , the transferring attorney will ?Transfer duty receipt be advised and must then make payment thereof in order to obtain the ?Lodgement necessary Rates Clearance Certificate. No transfer may be lodged with ?Celebration the Deed Office unless accompanied by a Rates Clearance Certificate.

Upon approval by the financial institution of the purchasers' bond Offer to purchase finance, an instruction will be forwarded to the attorney of their choice The registration of transfer is triggered by the acceptance of an Offer to (usually the transferring attorneys) to attend to the registration of the Purchase by the seller. The Offer to Purchase should contain all the necessary bond.essential details regarding the purchaser, the seller, the property description, the payment of the purchase price and the particulars of Electrical certificatethe existing bondholder over the property. There is a perception in the real estate industry that the furnishing of an

Electrical Compliance Certificate is not essential when transferring property and that therefore the clause in the sale agreement requiring the Seller to supply the Purchaser with an electrical compliance certificate, is not necessary. This is only half true.

The Occupational Health and Safety Act (‘the OHSA’) aims to provide for the health and safety of persons at work and as such is not an Act that one would expect to find in a conveyancing and property law context. However, the Act determines that responsibility for and maintenance of any electrical installation on a property lies with the owner or lessor thereof; and it also lays down requirements that must be complied with when ownership of any electrical installations (whether installed on residential, commercial or any other property) is passed. Therefore it is relevant to all home owners, lessors and role players in the property market.

The aim of the regulations promulgated in terms of this Act is not to ensure that each and every aspect of the electrical installation is in 100% working order, but that the installation is safe. A plug outlet may well not be in working order but nevertheless safe and an electrical clearance certificate can be issued in respect thereof.

Plumbing and gas compliance certificate (Western Cape only)The City of Cape Town has passed a new water by-law which determines

Bond application that all sellers of properties within its jurisdiction must furnish a Immediately after the acceptance of the Offer to Purchase, an Plumbing Certificate to the municipality before transfer.application for the finance of the purchase price must be made by the The certificate serves to confirm that: Purchaser or his representative to a financial institution, unless the ? The water installation conforms to the national building regulationspurchaser already has cash funds available and does not require a loan. ? The property's water meter is registering;

? There are no defects that can cause water to run to waste; andInstruction to the transferring attorney ? no rainwater leaks into the sewerage system.In order to activate the registration of the transfer process, a copy of the signed Offer to Purchase must be handed over to the transferring Transfer Duty Receiptattorney upon acceptance thereof by the Seller. The transferring attorney will also submit an application for a Transfer

Duty Receipt from the Receiver of Revenue. No transfer may be lodged Cancellation figures with the Deeds Office unless accompanied by a Transfer Duty receipt. The transfering attorney will then request cancellation figures from the The attorney who is registering the bond immediately requests from the Seller's existing bondholder, if the property is still bonded. Upon receipt transferring attorney the draft Deed of Transfer. This is necessary to

THE TRANSFER AND REGISTRATION PROCESS

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obtain details regarding the title conditions, purchase price, dates of sales and so on. (This is only done if the financial institution instructs an attorney other than the transferring attorney.) Once instructed to register a bond by the financial institution, the transferring attorney may now proceed to draw all documents regarding the transfer and arrange for the signature thereof by both the seller and the purchaser.

Similarly, the bond attorney upon receipt of the Draft Deed proceeds to draw all documents pertaining to the registration of the bond and has the same signed by the Purchaser. The bond attorney then issues the necessary guarantees in favour of the Seller or the existing bondholder of the Seller to procure the cancellation of the existing bond.By this time the transferring attorney would already have received both the Clearance certificate as well as the Transfer Duty receipt and will now be in a position to lodge the documents for registration in the Deeds Office.

LodgementAt this stage of a property transfer, the transferring attorney then contacts the bond attorney as well as the cancellation attorney in order to effect the simultaneous lodgement of the various deeds in the Deeds Office. The transferring attorney attends to the registration of transfer of the property from the name of the Seller to the Purchaser whilst the cancellation attorney attends to the cancellation of the existing bond of the Seller and the bond attorney on the other hand sees to the registration of the new bond to be registered over the property as security for the Purchasers' loan. The set of three registrations is then submitted simultaneously in the Deeds Office and after being examined by the examiners in the Deeds Office, placed on preparation where the attorneys - both transfer and bond cancellation attorneys - attend to any notes made by the examiners in respect of the documents. This takes 10-14 working days. After the documents are cleared by the examiners on prep – with all the notes attended to by the various attorneys - the documents are forwarded for registration the following day.

Upon registration the attorneys involved attend to the following:?Present the guarantees for payment of the purchase price, which is then allocated towards the payment of the existing bond in the balance in

favour of the Sellers, being the proceeds of the sale. ?Adjustment and apportionment of rates payments are made and the various parties debited or credited as the case may be. The local

authority is advised of the registration. ?Agent's commission is paid to the estate agent. ?The transfer attorney then forwards the Title Deed to the Bond attorney/Bond holder who retains the same together with the registered bond

document as secured.

CelebrationAnd that, in a rather hefty nutshell is the transfer and registration process. . If at any time during this process you feel left in the dark, speak to us. Our agents will provide you with all the information you need to know as to exactly what the status of your sale transaction is. It's all part of

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THE TRANSFER AND REGISTRATION PROCESS continued...

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STEPS IN A REGISTRATIONMarketing Process Seller + Agent + Buyer

Offer accepted and Agreement of Sale completedFamiliarise yourself with the terms of the Deed of Sale

Agent's admin department sends copy of Agreement with covering letter to Seller and Buyer and a copy to the transferring Attorney with instructions to attend to the transfer

Attorneys request Seller and Buyer to furnish copies of ID documents and other documentation relevant to the transaction and required to prepare the transfer documents

Attorneys will have Buyer sign bond documents and pay the costs involved. They will also contact transferring attorneys and liaise with them regarding guarantees to secure the purchase price.

Transferring attorneys call for the title deed, cancellation figures on the existing bond, and rates clearance figure from the municipality.

Once the bond is granted, transfer documents are drawn up by transferring attorneys and must be signed by Seller and Buyer. Buyer will pay transfer costs, conveyancing fees and balance of purchase price, if any.

When costs have been paid, the transferring attorneys pay the relevant transfer duty to the Receiver of Revenue and obtain a receipt. They pay the rates amount to the Municipality and await a all clearance certificates. These two receipts form part of the transfer documents.

All involved attorneys must lodge their documents at the Deeds Office at the same time, for all three transactions to be registered simultaneously.

After lodgement the documents are processed and examined in the Deeds Office for a minimum period of 10 working days.

AFTER REGISTRATIONAttorneys notify the Seller, the Buyer and the Agent? Attorneys cash the relevant guarantees? Seller is paid? Estate agent's commission is paid

THE BUYERS ARE NOW THE NEW OWNERS!

Transfer of Property from Seller to Buyer, ready to lodge

Cancellation of Seller's existing bond, ready to lodge

Buyer's new bond, ready to lodge

Seller to continue with bond paymentsuntil registration is completed

Buyer pays deposit in terms of the agreement and applies for a Bond. Arranges guarantees or cash for balance of purchase price. Most bankswill first approve the client and then carry out thevaluation of the property. The Buyer signs acceptance of the bond, then the bank instructs its attorneys to register the bond.

Seller obtains an electrical clearance certificate

?How does an estate agent operate? You should consider and ask the following questions:?How do I choose an estate agent? What is the reputation of the agency, length of service and level of ?Why do I need an estate agent? activity in the area? A good agent will know the market values in your ?How will an agent market my property? area and also have a ready database of possible buyers.?Do I give the agent a sole mandate? Are the owners or principals of the company actively involved in the ?Are there any other options available to me? business and are they easily accessible to clients??What is a sole mandate and its benefits? What marketing does the company do, to promote itself in the area? ?What market price should I ask for my house? Besides advertising in the press, do they have a referral network and ?What is the most important aspect when selling or buying a home? system in place??How much should I budget for my new home??What is in a Sales Contract? How long have they worked for the agency and will they have back-up??What is "Occupational Rental"? Do you trust the agent – what is your gut feel? You both will need to get ?What should I do inside my home when selling? along during the duration of the marketing period?

Is the office visible, professional and is it in close proximity to your What role does an estate agent play? property.The estate agent is the link between a seller and a buyer and will negotiate the agreement of sale that is acceptable to both parties. If What properties have the agency and agent sold recently? the seller is happy with the estate agent's marketing plan and Choose a company and agent that appear to have the trust of the commission proposal, the seller will then give the agent instructions via a community. Such trust is usually achieved through expert and honest signed mandate to sell the property to a suitable buyer. The offer to dealing. 'For Sale' and 'Sold' boards are usually your best indicators of a purchase is drafted up by the estate agent and must be signed by the dominant agency.

Why do I need an estate agent?An estate agent's job is more than just showing you homes you might be interested in. Just as important as finding your new home, is coming to an agreement with the seller, and arranging a home loan that suits your financial situation. It is the estate agent's job to ensure that these things are taken care of quickly, and to guide you through the process. There are many pitfalls to buying and selling real estate without engaging a professional estate agent.

For example, a buyer needs to know what hidden costs there are to purchasing fixed property. You may ask yourself "How will I know I am viewing the best properties in the area? Who will explain the Purchase Agreement, and how will I know I can trust that person?

How can I spot a latent or patent defect in a property? Who will explain the implications of putting my signature to any document? Do I have the expertise to co-ordinate a smooth transaction from purchase to registration of the property?”

As a seller, you may ask yourself "When will I allow a stranger to enter my home? How will I qualify a buyer? How much deposit should I require, and when will this deposit be payable? How long does it take to secure a loan? What special conditions should be included in the contract? Do I have the negotiating skills to ensure the best possible price?”buyer, the seller and the agent. The agent will charge a fee or commission

for their services which is payable by the seller. Remember that the fee or How will an agent market my property?commission payable by the seller must be negotiated up front prior to When a seller appoints an agent and the company they represent to commencement of the transaction and is usually stipulated in the signed market and sell their home exclusively, (see below) it is the responsibility mandate. In most cases the agent's commission or fee will attract VAT.of the agent to give the seller a written Marketing Plan in order to explain how they will market the property. In most cases, if the property is being How do I choose an estate agent?marketed by all the agents in the area, the Seller will usually not be given When appointing an agency and agent to represent you, you are a marketing plan and will not be promised newspaper and Internet entrusting them with the marketing and selling of your biggest asset. advertising.Interview your agent/s as if you were the employer and they the

employee. DO NOT base your decision on the highest valuation given by Our agent will discuss the Leapfrog Marketing Plan with you at the next an agent – this just leads to unrealistic pricing and creates a false meeting, once they have concluded the evaluation. expectation with you.

QUESTIONS & ANSWERS

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Do I give the agent a sole mandate? There are four choices options available to you (the first 3 must be in writing) :SOLE MANDATE: One agency is awarded the property to market and sell on behalf of the Seller.JOINT MANDATE: Two agencies are awarded the property to market and sell on behalf of the Seller. Usually, the Agency that sells the property is

remunerated.MINI-LISTING: One agency is awarded the property to market and sell on behalf of the Seller (Sole Mandate). That Agency then, either

immediately or after a period of time invites other agencies to work alongside them in order to sell the property. Should the sole agent sell the property, they are remunerated. Should one of the other agencies sell the property, the remuneration is usually shared equally.

OPEN MANDATE : The seller allows as many agencies as they wish to market and sell the property on their behalf.

What is a sole mandate, and what are the benefits?Under a sole mandate a seller instructs a particular Estate Agency to find a buyer and no agent from any other company may market the property during the sole mandate period.

What market price should I ask for my house?The difference between 'Listing' your home and 'Selling' it is usually PRICE! The value of a home is determined not by what the owner has invested in the property, but by what a willing and able purchaser will get out of it. Principles to keep in mind when considering price:?Cost: The amount actually paid for a property plus any capital improvements made since the purchase. ?Price: The stated amount an owner is willing to accept for a property. ?Value: The amount a Buyer is willing to pay, given a certain set of circumstances. ?Market Value - The amount that will bring a sale between a willing Buyer and a willing Seller. It is based on the history of similar properties recently sold in the area.?Valuation:The correct method for an estate agent to price a property is to use a Comparative Market Analysis (CMA). This determines the value of a property in comparison to other comparable properties which have been recently sold and are currently for sale. A 'CMA' should be presented to you in writing.

It is the duty of the Estate Agent to sit down with the Seller and study the “CMA” comparatives carefully. Together they should decide on the outcome desired and with this in mind, set the correct asking price for the property in terms of the current market conditions. At the end of the day, the ultimate decision is that of the seller; however, the agent must present the seller with the facts.

SOLE MANDATE OPEN MANDATE

A PERSONALISED MARKETING AND ADVERTISING PLAN will be developed to suit your needs. Activity will be monitored and controlled.

You run the risk that none of the agents will put time and effort into actively marketing or advertising your property, because they all expect that someone else is doing it.

A sole mandate is worthy of a generous marketing budget. Agencies usually advertise their sole mandates first.

A SINGLE AGENT interacts with you to understand your requirements. Open mandate properties tend to be MERELY ADDED TO A LIST.

A sole agent allows BUYERS TO COMPETE on the property, thereby maximising the realized selling price.

On open mandates. AGENTS COMPETE, thereby compromising price and often puts undue pressure on a seller to accept the first offer.

Continuous feedback from your agent allows for careful PRICE MANAGEMENT, again maximising the realised selling price.

Mismanagement of price can result in a LOWER PRICE being realised.

A sole agent is ACCOUNTABLE to you for results Agents are LESS ACCOUNTABLE on open mandates.

Real estate MANAGERS monitor and track the service provided by their agents on the sole mandates. Managers DON’T monitor agents’ performance on open mandates.

Your sole agent will NEGOTIATE WITH POTENTIAL BUYERS to get the highest possible price. Ensure consistency of price.

With an open mandate, buyers will seek out the agent who will offer them the property at the lowest price. No consistency of price.

Less likelihood of COMMISSION DISPUTES With more than one agency handling your property, COMMISSION DISPUTES often arise.

You have PEACE OF MIND in knowing that only one responsible party has access to your property.

Multiple agents frequently mean multiple keys, and the possibility of COMPROMISED SECURITY.

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What is the most important aspect when selling or buying a home?Common sense. Don't be in a rush. Do your research, always ask for advice and before you sign anything make sure you fully understand all the terms of sale and all the relevant details and arrangements.

How much should I budget for my new home?When you are budgeting for your new home, there are two types of costs involved: ? Once off costs: ? Deposit on your new home? Conveyancing (attorney's) fees, bond registration fees ? Municipal deposits for water and electricity, telephone? Cost of moving, new curtains and carpets and so on.

Regular monthly costs: ? Repayment of home loan ? Insurance on your home ? Municipal rates and taxes or monthly levy if you buy on Sectional Title.

What is in a Sales Contract?The signed 'Offer to Purchase', or more commonly known as the sales agreement, is the document you sign which presents your price and terms to the seller. It must be completed in full, because when the seller signs it, the document becomes the binding 'Sales Contract' which contains the conditions of the sale. If you forget something in the offer, you can't usually add it to your Sales Contract later. Terms and conditions of the contract vary depending on the situation. You and the seller may negotiate and agree on:

? the sale price of the home ? the amount of your deposit ? the amount of the home loan you will endeavour to obtain ? what items go with the home, such as curtains, appliances, swimming pool equipment etc. ?the date of occupation ? any conditions agreed upon by you and the seller which must be met before settlement can take place, such as:

improvements (painting, roofing, etc); ?the ability to obtain a specified home loan within a specified time, or your ability to sell an existing home prior to purchasing the new one.

What is "Occupational Rental"?If one of the parties is in occupation of the property whilst it is registered in the other's name, it is usual for the agreement of sale to make provision for the payment of occupational rental during that period. The exact amount and date of occupation should be clearly stipulated in the contract.

What should I do inside my home when selling?Kitchen and bathrooms should be spotlessly clean! Even a minor facelift - fresh paint, new floor tiles and new cupboard doors, for example - will pay off in a faster sale at a better price. It is usually better to keep to light neutral colours when renovating.

Make sure countertops are clean and uncluttered and cupboards tidy. In all bedrooms, family rooms and sun rooms, be sure to pack away unnecessary items and keep the floors clear of toys! Create space, where possible, and open the curtains to let the sunshine in. If you have a pool, be sure to keep it sparkling clean. Paint and repair garden furniture and brighten it up with pretty cushions. First impressions count! Keep your lawn neatly trimmed and mowed.

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There are a number of Real Estate words that come up in the process of Fixtures and fittingsbuying and selling a house that may sound foreign to you, so we've tried These are attachments to a home which are deemed to permanently to give you a simple definition of what these words really mean. Simply belong it. They include light fittings, curtail rails, TV aerials and eye-level put, we've dropped the jargon and given you the stuff you need to know: ovens and may not be removed by the seller when he vacates the

property.AddendumA supplementary agreement to an original sale contract covering points Guaranteesagreed to afterwards. It is a separate agreement in its own right and, if it Written undertakings issued by registered banks guaranteeing payment contradicts the original in any way, it is presumed to overrule it. of part or all of the purchase price on registration of transfer. They are

furnished to the transferring attorney.Agreement of saleThe basic contract of sale and purchase between a buyer and a seller. No Jurisdictionmatter what you two have agreed to verbally no contract exists until an Most sale agreements contain a clause providing that, should either agreement of sale is completed and signed by both you and the seller. party take the other to court for any alleged default, he may do so in a

Magistrates Court even though the amount in dispute may exceed its Breach clause normal jurisdiction.A condition in a contract obliging a seller to give a defaulting buyer written notice to remedy his breach of contract within a specific period Null and void(usually seven days) before he can cancel the sale. A legal expression emphasizing a final cancellation or lapse of a sale

agreement. It puts both parties in the position they were in before the Conditions of title agreement was signed and leaves each without obligation to the other.These are the restrictive conditions limiting an owner's rights which are recorded on his title deed to a property. They cover matters such as Prior occupationmineral right reservations, servitudes and building limitations. A buyer's right to take personal occupation of a property before transfer takes place. A rental, agreed to in advance between the parties, will be

payable by the buyer until registration of transfer.

Offer to purchaseA document setting out the proposed purchase price and conditions on which a buyer is prepared to purchase a property. It will be submitted to the seller and, once he signs it, it becomes a valid sale agreement.

Property descriptionThis is the definition of the property sold in a sale agreement. It can simply be its street address but usually records its erf number and township as described in the owner's title deed.

PossessionA stronger right than occupation which usually only passes on registration. It entitles the buyer to receive all rentals paid by existing tenants while obliging him to pay all assessment rates.Cooling-off right

A statutory right, recorded in Section 29A of the Alienation of Land Act, Subject to sale giving a buyer of a residential property costing R250 000 or less the right An expression used by estate agents to describe a sale contract which will to withdraw from the sale within five days of making a written offer.only become unconditional between the parties if and when the buyer sells his own property. A time period of sixty days is usually allowed. Electrical compliance certificate

A certificate issued by a qualified electrician confirming that the Suspensive condition installation on a property from its supply point is safe. Every buyer has to A provision in a contract suspending its operation until a specific be in possession of one once he takes transfer of ownership.condition is fulfilled. A clause stating that the sale will only be confirmed if a mortgage loan is granted is a typical suspensive condition. Entomologist's certificate

A similar certificate required by law in some coastal provinces to be Voetstootsobtained before transfer of a property confirming that its structure is free A Dutch expression meaning that a property is bought "as is" with all its of woodborer or termite infestation.patent and latent defects. A Seller can still be held liable for latent defects known to him which he fails to disclose to the buyer. There are a number Escape clause of Real Estate words that come up in the process of buying and selling a A condition in sale contract giving the seller the right to cancel it if he house that may sound foreign to you, so we've tried to give you a simple obtains a better offer from another purchaser. It is usually inserted when definition of what these words really mean. Simply put, it's the stuff you the first buyer is given time to sell his own property first.need to know.

TERMS AND DEFINITIONS

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They say that there are only two certainties in life – death and taxes. As a seller of a fixed asset that has appreciated in value, there is almost a During the year of your death, instead of the annual exclusion, the certainty that you will be liable to for Capital Gains Tax(CGT). To exclusion granted to individuals is R120 000, meaning that your estate understand CGT and what the implications are for you, read on... can dispose of your assets without incurring tax, unless the gain or loss is ?What is Capital Gains Tax more than R120 000. ?Will I have to pay Capital Gains Tax??Annual exclusion Primary residence exclusion?Primary residence exclusion As a natural person if you sell your primary residence which is occupied by ?Determining the base cost you for an amount of R2million or less, the sale is exempt from CGT, and if ?Assets acquired before 1 October 2001 you sell your primary residence for a profit of R1.5million or less, then the ?Market value sale is exempt from CGT. Capital Gain in excess of R1,500,000 profit will ?Time apportionment method therefore, be subject to CGT.?The 20% rule

A primary residence and the land upon which it is actually situated, and What is Capital Gains Tax? any land adjacent to it that is used mainly for domestic purposes may CGT was introduced into South Africa on 1 October 2001, bringing the also be subject to certain exclusions. The total of all the land must not country in line with international practice. CGT is a tax levied on the profit exceed 2 hectares in order to fall out of the CGT net. If the size of the you make from the sale of assets. You only pay tax on your asset when property exceeds 2 hectares, a reasonable apportionment would have to you actually sell or otherwise dispose of them. All taxpayers including be made. If the property is not mainly used for domestic purposes, that individuals, trusts, companies and closed corporations are taxed on the portion will not qualify for the exclusion.profit made from selling assets or property of a capital nature such as equipment with which goods and services are produced like tools, Determining the base costmachinery, buildings and so on. CGT helps to widen the tax net which Capital gains or losses are the difference between the base cost of the should help to reduce personal income tax over time. asset and the sum received on its sale or disposal. The base cost is

calculated by adding up the following expenses: purchase costs; costs associated with the purchase and disposal of the asset (for example legal fees, agent's commission, stamp duty, advertising costs, broker's fees and transfer duty); vat; improvement costs and any legal costs incurred (for example, the legal costs incurred in defending a right to an asset owned by the taxpayer.)

Assets acquired before 1 October 2001Before the base cost can be determined, the value (value of the asset as at 1 October 2001) has to be determined. Once this value has been determined, any allowable expense incurred after 1 October 2001 must be added to determine the base cost.

Market valueThe market value of the asset at 1 October 2001 can be used and this valuation must be in writing. Taxpayers had until 30 September 2003 to obtain a market valuation of the asset. Even though the valuation may have occurred subsequent to 1 October 2001, the valuation must be the value as at 1 October 2001.Will I have to pay Capital Gains Tax?

The implementation date for Capital Gains Tax (CGT) was 1 October Time apportionment method2001 (the effective date) and only Capital Gains arising after the This method involves looking at the total Capital Gain made over the effective date will be subject to CGT. All South African residents and non-period during which the asset was owned and then determining the gain South African residents who make a profit from the sale of a fixed made after 1 October 2001.property of a capital nature located in SA will need to pay CGT as well as

on profits made from the sale of all assets including properties registered The 20% rulein the names of trusts, companies and closed corporations. In terms of this rule 20% of the proceeds received by the seller will be deemed to be the base cost in the event that an asset held before 1 Annual exclusionOctober 2001 is sold thereafter. Allowable expenditure incurred after 1 An annual exclusion of R17 500 capital gain or capital loss is granted to October 2001 must be deducted from the proceeds before the 20% rule individuals and special trusts which means that is you make a capital gain is calculated.of R17 500 or less for the year, you are not liable for CGT on this amount.

CAPITAL GAINS TAX (CGT) EXPLAINED

A taxpayer need only inform the commissioner of the South African Revenue Service of the option chosen once the asset is disposed of. However, where a taxpayer opts for the market value as the valuation method, proof of the valuation must be submitted with the first tax return submitted after 30 September 2003 in the following instances:

Rate at which the Capital Gains is included in taxable income (inclusion rate).Once a net Capital Gain for the year of assessment is determined, such amount is multiplied by the inclusion rate to determine the individual or entity's taxable gain. Inclusion rate x statutory tax rate = effective rate

TYPE OF ASSET APPLIES WHERE MARKET VALUE EXCEEDS

Intangible assets Per asset R1,000,000

Unlisted shares All shares held by the shareholder in the company R10,000,000

All other assets Per asset R10,000,000

TYPE OF TAXPAYER INCLUSION RATE STATUTORY TAX RATE EFFECTIVE TAX RATE

Individuals 25% 0-40% 0-10%

Other (local) trusts 50% 40% 20%

Special trusts 25% 0-40% 0-10%

Companies 50% 30% 15%

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CGT CONTINUED...

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The term “Exceptional Service without Exception” was coined at the Reception Assessmentlaunch of the Leapfrog customer service programme – Hot or Not. This First impressions term is an integral part of the brands culture, its meaning is unconditional ?Call Answerand is something that we require of each and every touch point we have ?Telephone Etiquettewith our customers. ?Vibe and Impression

Second impressionsThe customer service programme - Hot or Not, grades all our franchises ?Call transferaccording to a certain benchmark. We pride ourselves by being one of the ?Message and call backonly real estate franchise groups that has such a programme. We want to ensure that our service offering is consistently world class which is why we Overall impressionsfeel it necessary to tell you all about it. Outcome – were needs seen to

Client CallsClients are contacted and asked for feedback on their experience with a particular agent. On a scale of 1 to 5, with 5 being excellent and 1 being poor they are asked the following questions:?The agent's knowledge of the property market?The agent's energy and passion?Did the agent look after client interests to their satisfaction??Was the agent professional at all times??The agent's willingness to stay in touch and his/her after sales service??What was the general impression of the agent and his/her service??Did the client visit the Leapfrog office – if so what was their opinion?

Franchise ratingsCalls to clients, physical assessments, receptionist assessments, scorecard and any queries or complaints are reviewed. Franchises are rated on willingness of the principal to assist and provide feedback. It's a simple - If you feel that our office did not deliver exceptional service, we would like Yes / No (Does not count towards overall rating BUT must be a yes for a hot to hear about it via our website or contacting our Cape Town support office)office directly. There are a number of assessments which are used to

determine whether an office is Hot or Not. They are:Quarterly scorecardThis scorecard is completed on a quarterly basis and is used to assess Physical Assessmentwhether the franchise has embraced and driven some key Leapfrog Where the following areas in the franchise are assessed:values, schemes and partners within their organisation or not.

?LocationRated from 1 – 10 with 10 being excellent and 4 and below, way below ?Reception Areastandard. The measures are:?Boardroom / Meeting Facilities?Building of Leapfrog culture and the Leapfrog Way?Administration and Management Area?Improving differentiation with other brands Promotion of BEE, ?Property Gallery

recruitment of black staff?Agent Area?Promotion of the recruitment scheme?Storage Facility?Promotion of “ForMe” investment benefit?Kitchen?Promotion of “green initiatives”?Bathrooms?Promotion of Leapfrog through the PR company?Signage

HOT OR NOT CUSTOMER SERVICE

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Leapfrog Property Group has invested heavily in our online capability, delivering the next generation in web-based real estate marketing that is entirely sophisticated in the back-end, yet effortless and highly effective in the front-end to deliver superior customer engagement and interaction for you. Given our reputation for doing things differently, it was a major imperative for us to bring to market an online platform that would engage with an increasingly sophisticated consumer who is time-starved, yearns for immediate answers and feedback and demands the best in customer service and engagement.

Our website has been designed to deliver real benefits and business value to our franchisees and agents along with unique customer insights in order for us to actively bring buyers, sellers and agents together with a common purpose and goal, complete with an entirely new edge.

Some of the many benefits of finding your dream property online at include:?Highly optimised listing search functionality guaranteed to be found in the major search engines.?Intelligent area and mapping search functionality featuring Google maps. There are several search options catering for users of different

ability. Even the most inexperienced internet user is catered for.?Automatic branded PDF brochures created of the properties you view.?Intelligent user journeys guaranteed to deliver qualified results for you when browsing.?Innovative data display modes including list, gallery, map and table all geared for different user interpretations of the listings information.?Automatic property alerts allow you to register criteria and receive automatic alerts via email, SMS & RSS for those properties matching

your criteria.?Additional information resources available which are constantly updated e.g. news & advice articles, area information and suburb

guide pages and so on.?Ability to feed multiple portals both locally and abroad including Property24, Property Genie, SAHometraders, Cyberprop, MyProperty,

IOLProperty, Right Move (UK), Hot Property (UK)?Interactive branch and agent locator facilities enabling easy look up of contact information for specific areas.?Detailed property particulars capture and display including 20 images, 5 floor plans, wealth of features, detailed description with Seller

interview, Room by room descriptions, multiple brochure display, Google location map display.?Unique show day advertising facility.

A steadily growing number of users are surfing the net looking to either buy or rent a property and research has shown that 90% of internet users will use the search engines to find what they are looking for. The agent still plays a crucial role, however the total experience is that much more enhanced. New digital media and marketing channels are emerging all the time and the fact remains that technology and the propensity for consumers to use it are not going to go away. We have invested our energies into finding ways to develop sustainable and mutually beneficial platforms that integrate with and grow our revenue opportunities.

In many respects Leapfrog has been a trendsetter in terms of changing the way we do business, rather than just doing things the same way simply because 'that's how it's always been done'. Our move into online real estate marketing is no different.

The International Property Awards in association with Bloomberg Television, has recognized Leapfrog’s website as the 'Best Real Estate Agency Website' in the Europe & Africa region 2010. So, if you are searching for property online, visit our award winning website where you are sure to find what you’re looking for @ www.leapfrog.co.za.

SELLING THROUGH THE WEBSITE

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Having a show day for your home is an important part of the marketing process when it comes to selling your property. Your agent will make the necessary arrangements and do the hard work of qualifying any potential buyers who come to view the property, but there is a lot that you can do maximise the show day opportunity and help to sell your property faster:

?First impressions are important so take a good look at the exterior appearance of the property. Does it need a fresh coat of paint? Take care of repairs and spend a little time and money replacing any cracked windows, replacing broken lights, intercoms and so on.

?Keep the garden neat and tidy mow the lawn, plant some flowers and get rid of clutter and rubbish bags before potential buyers arrive.

?Make sure your house is clean and tidy pack away toys, ornaments and any other items which make the rooms feel cluttered.

?Give the carpets a good, professional clean and sort out any cause of malodour. ?On show day put out a fresh vase of flowers.

If it's a warm Summer day, open the windows and allow light and fresh air to circulate. This creates a pleasant, relaxing atmosphere. In Winter, make your home warm and inviting buy turning on the heater, or better still, a burning fireplace adds to the character and cosiness.

?If possible, try house your pets elsewhere for the day with friends or family, especially if you have unruly dogs. ?Don't hang about – leave your agent to get on with the job of selling your property.

SHOW DAY TIPS

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Moving is probably one of the biggest causes of stress, understandably so as it comes down to packing up your whole life and moving to a new home and sometimes a new town. Follow these handy tips to make your moving experience as painless and methodical as possible.

?Make a list - Write everything down! You'll thank yourself later. Create a record keeping system and number each box with an accurate list of everything that is in the box.

?Have plenty of supplies - you'll need lots of boxes, probably more boxes than you think. Ditto for the packaging tape, bubble wrap and permanent markers. Keep around 10 boxes set aside to use for last minute items on moving day, such as bedding, clothing, and cleaning supplies. Use unprinted newspaper to wrap your goods as printed newspaper can stain. Wrap fragile items thoroughly.

?Don't make the boxes too heavy to lift – put heavier items in smaller boxes and less of them so you don't overload and end up with the bottom of the box and your broken crockery on the floor.

?Color co-ordinate. Choose a colour for each room in the new home, such as yellow for kitchen, orange for dining room and so on. Apply colored stickers on the box near the box number. Put a matching sticker on the door to each room.

?Change the locks and gate remotes - you'll never know how many keys are floating around for your new home unless you get new locks or re-key the existing locks. The previous owners may have given a key to neighbors, workmen, relatives, or former domestic workers. For peace of mind change the locks on all access points and have the gate motor and remotes reprogrammed. Do this before you move in or as soon as possible afterwards.

?Electrical Upgrades - If you're moving into a new home, you may have all the electrical outlets you need. But older homes could be a challenge. You can do the upgrades anytime, but everything is easier to get to in an empty room. Make any upgrades to electrics before you move in such as install extra lighting, ceiling fans and so on. The same applies to any renovations, new carpets or painting that may need to be done.

MOVING TIPS

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Buying existing property and renovating it to your liking still offers a better return on investment than building from scratch, especially considering the current low interest rates.

The average house construction cost is around R6000m² for basic finishes and anywhere from R10 000m² upwards for more luxurious pads. Construction projects in the W.Cape as an example start at R6000 m² for very simple work and finishes and can run up to R15 000m² for high quality finishes, excavation if you're building against the mountain side and so on. Added to this, you have the frustrations that go with building from scratch. Unless you have the time and experience to project manage it yourself, buying an existing property in a good location and renovating still offers far better value for money and peace of mind.

And of course, if you are building, you'll have to wait anywhere from six months to a year and possibly even longer for a totally custom-built home before you move in. While one of the benefits of building is the fact that you get to choose exactly what types of features and finishes you want, the costs very easily mount up and you may soon find the dream home you want is quite unaffordable.

When buying you may find that the previous owners have improved the home with many features that may not be affordable if you currently had to purchase them – for example real wooden floors.

Finally, building in a new community or development is just that – new! You don't know what developments might be springing up around you. There are countless cases where people spend fortunes building their dream homes in a plush estate, only to have a low cost housing development or informal settlement spring up next door, dramatically decreasing the value of their custom-built homes.

BUILDING VS MOVING

Let's face it – most of us don't pay enough attention to the detail and professional fees, removal of debris, new architectural plans (following fine print of our insurance policies. And the bottom line is, failure to do so fire or flood damage), fire brigade charges and public authorities' can cost you a wheelbarrow full of money that you don't have and most requirements. Not much of that R300k left when you take all that into of all, could be avoided entirely by taking 30 minutes to critically review consideration! and update the true value of your insurable assets once a year.

Let's not forget that in the event of a fire or flood, you'll most likely also Thanks to the rise in property replacement costs, your home could be be looking at having to replace all your household contents, another significantly under-insured in the event of a major catastrophe - a fire, area where Santam research has shown that some 40% of short-term earthquake, floods or any other major 'peril' as the insurance industry insurance policyholders are under-insured by up to 45% and that's defines them. The true gravity of the impact of underinsurance is notwithstanding the fact that South Africans are more exposed than

most countries to loss from the likes of crime, burglary and vehicle claims including car hijacking and theft.

If you are under-insured in the event of a claim, you may be paid out only partially for the loss. That's because of what the insurance industry describes as the 'average' formula. For example, if you insure household contents for R250 000 but in fact the replacement value is double this amount, you are effectively 50% under-insured. Should you suffer a loss of say R100 000, the insurance company will therefore pay only 50% of the claim at R50 000, leaving you out of pocket for the balance. Imagine what it would mean if your home was under insured to this extent! The onus is on you to make certain your home and assets are adequately insured. When deciding the correct value to insure one must consider the price of rebuilding the house from the ground at today's replacement building costs. The cost of providing sufficient cover is negligible in the greater scheme of things. What's more, you can lump your homeowners' cover with your motor and householders cover (which insures the contents of your home) thereby reducing the overall rate at which your cover is provided.

An alarming aside is that property owners who pledge their homes as security for loans are in danger of having to honour those loans out of their own pocket should they be under-insured. Ironically, people will often insure their cellphones before they make sure that their house is properly covered. painfully illustrated in the following example of insuring your most

valuable asset – your home.Some tips when it comes to your insurance cover: ?When it's time to renew your policy check your coverage, but for ?You bought your home ten years ago for R300 000 and insured for

peace of mind you may want to do so immediately. the same amount. But since then it has appreciated in 'market ?Shop around for the best ratevalue' to, say, R750 000. However, the key 'replacement value' – that ?Ask your broker about policy changesis the cost to rebuild the home from scratch at today's prices - could ?Check whether you have limited cover for subsidence and landslip. be R1million. The under-insured component could therefore be as

Most insurers offer limited cover. Full cover can be purchased at an much as R700 000, based on replacement and other costs. additional premium subject to a satisfactory geological survey. The ?Bond insurance would cover around 90% of the original R300 000 cost of the survey will be for your account.loan if the home was financed in the typical way, with a 10%

?When you make a major purchase, build an addition onto your home deposit. That cover secures the loan of the bank to the homeowner, or improve it, talk to your broker about increasing the cover to allow but it does nothing to cover the appreciation in market value and for the improvements.today's replacement costs.

?If the roof construction of your home is thatch, you may qualify for a discount by installing fire alarms and sprinkler systems.And even if your insurance policy pays out the full R300 000 after all

?Finally, keep your policy in a safe place, away from your home, in a considerations, you'll be hard pressed to replace anything remotely bank safety deposit box for example. resembling your original home at today's building prices. And of course

you'll also first be liable for all other costs including demolition and

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IS YOUR HOME PROPERLY INSURED?

There are various ways of purchasing a property including in your Private Companypersonal capacity, through a company or CC or through a trust. There ?Transfer duty is at a rate of 10% of the purchase price. Transfer duty are various important factors to consider when deciding which entity will has to be paid even when buying shares in a company that owns be most suitable which include transfer duty, VAT implications, immovable property.protection from creditors, administrative costs and capital gains and ?Capital gains tax must be paid on 50% of all profit earned from the other taxes. The individual pros and cons of each of the different sale of property. This is the company's taxable income and taxed at a entities is listed below but before going ahead, it is always advisable to flat rate of tax of 29% which is effectively 14.5% of the capital gain.consult with an attorney and tax expert before making any final ?When a company sells a property, the company must declare a decisions. dividend in order for the shareholder to acquire the profit realised on

the sale. There is a further tax payable on this amount at a rate of 12.5%.

?Companies can have a much larger number of shareholders than a close corporation. Company shares can be owned by trusts, close corporations and companies, where as a CC can only have a maximum of 10 natural persons as shareholders.

?A company is a separate legal entity and therefore the assets of the shareholders may only be attached to cover the company's debts if the individual had stood surety for the company.

?When buying a property, the agreement of sale can be signed on behalf of a company that is not yet in existence. Thereby giving the purchaser more flexibility.

?A company is prohibited from providing financial assistance to a purchaser of its own shares. Therefore equity in the company cannot be used to assist in the purchase of more shares in the same company.

?A company's financial statements are required to be audited.

Close Corporation?Close Corporations are affected by, transfer duty, Capital gains tax

and tax on dividends in the same way as private companies.?A close corporation, like a company is also a separate legal entity, so

personal debts cannot be attached to assets of the CC.?An accounting officer is required rather than an auditor, thereby

reducing administration costs.Individual?Property can be purchased on behalf of a CC that is not yet in ?Transfer duty is paid on a sliding scale, which is always lower than the

existence.rate of 10% charged when purchasing through other entities.?Membership is limited to a maximum of 10 natural persons.?When selling the property, the first R1 million of profit is exempt from

capital gains tax, As long as the property is the individual's primary Trustresidence, (applies to South African residents only). After the first ?Transfer duty is payable at a rate of 10% when a trust acquires million, Twenty five percent of whatever profit is remaining is added

immovable property.to the individual's income for the year, and taxed at the applicable ?Capital gains tax is highest for trusts that sell immovable property. rate of income tax. The maximum net CGT cost therefore, is 10%

50% of the gained profits are added to the trust's taxable income and this is the lowest possible rate of CGT.and taxed at a rate of 40% which is a net capital gains tax of 20%.?In the instance of an individual's death, their entire estate, including

?Property held by a trust does not form part of an individual's estate immovable property is subject to estate duty. Up to a value of on death, thus saving on estate duties.R1.5million is exempt from tax but the remaining value is taxed at

?Trusts are not required to be audited.20%.?Trusts are separate legal entities, so the trust's assets cannot be ?Properties in your name can be attached to you by creditors and can

attached by creditors of the beneficiaries.be taken to cover defaulted debt. For this reason, individuals trading ?An Individual cannot act as a trustee for a trust that does not yet under their own names may elect to register property in another

exist. Therefore trusts must be in existence at the date of signature entity.of the agreement of sale.?There are no auditors or accounting officer's fees as their services are

not needed

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BUYING A PROPERTY AS A PERSON, A COMPANY OR A TRUST