1. ELECTRICAL COMPLIANCE CERTIFICATE

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Ginger Wells
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1. ELECTRICAL COMPLIANCE CERTIFICATE The Seller is required to obtain this certificate from an accredited electrician and a compliance certificate in respect of all electrical installations,

1 1. ELECTRICAL COMPLIANCE CERTIFICATE The Seller is required to obtain this certificate from an accredited electrician and a compliance certificate in respect of all electrical installations, including any electrical fencing, as well as any gas installation and present it to the conveyancers or Purchaser, prior to registration of transfer. The certificate is a legal requirement in terms of the Occupational Health and Safety Act If required, we can assist in arranging for an independent electrician to contact you regarding the inspection of the property for the issuing of the certificate. The occupational rental for the month of registration will be apportioned pro rata and the balance refunded. It is preferable for the occupational rental to be paid directly between the Seller and Purchaser, as any payment to the agents or the conveyancers trust account would cause delays in payments as trust funds have to be clear, before it can be paid over. If the occupation date falls after the date of registration, the conveyancer will normally do a refund on behalf of the Seller to the purchaser, pro rata from date of registration, from the proceeds of the sale, if sufficient funds are available. 2. OCCUPATION The date of occupation is agreed in the offer to purchase for either, date of Registration, or a specific future date. For practical reasons, it is preferable for occupation of the property to be handed over from 12 pm on the agreed date of occupation. Any amendment to the occupation date, must be done in writing and signed by both parties. The occupational rental is usually agreed as a monthly amount of approximately 0.6 to 0.8% of the purchase price. The rental is payable monthly in advance by the person in occupation, whilst not being the registered owner, on the first day of every month until registration. 3. RATES, WATER AND ELECTRICITY A RATES CLEARANCE CERTIFICATE, issued by the local Council, is a prerequisite for lodgment of your transfer in the deeds office. To issue the Rates Clearance certificate, the Council requires that your accounts be paid up to date and further requires payment of your average monthly account billing, for 3 months in advance. Although the Council will normally bill your Rates and Taxes on the same account with your basic and consumption charges, they are in fact 2 separate accounts.

2 BASIC CHARGES (assessment rates, refuse and sewer) are for your account until registration, and the Council will do the necessary adjustments and charge the new owner from date of registration. As your conveyancer, we will advise the Council of registration in writing on your behalf, but usually, the Council will only do the adjustment once they receive electronic confirmation from the Deeds Office of the change of ownership, and this process could take up to 12 months. You will therefore still receive your accounts for basic charges even after the transfer is registered, and until such time as the Council has done the change of ownership and adjustments. The charges that were billed on your account after registration will be reversed, and allocated to the new owner. CONSUMPTION CHARGES (water and electricity if charged by City Power) are for your account until occupation. The Purchaser can only open their consumption account on registration of transfer. We will furnish the Purchaser with a letter confirming dates of registration and occupation. The Purchaser will be required to visit the offices of the Council to complete the forms, pay a deposit, and open their consumption account. CONSUMPTION Free hold properties Consumption is charged 3 months in advance by Council, in order for us to obtain the rates clearance certificate for the property, and any overpayment and credit to your account will be refunded by the Council. The refund will only be done once the Council changes the ownership on the system, and attends to the adjustments on your account. This process may take 6 to 12 months! For queries in this regard you can log a query with the Call Centre on It is advisable to fax the Municipality and instruct them to do a final reading on the day of occupation. This instruction can be faxed to City of Johannesburg, Accounts Department on Their telephone number is A form for this purpose is available for download from our website, Should electricity to your property be charged by Eskom, the Purchasers can open their account on occupation, and you as the Seller, can close your account. This can be done telephonically by contacting the Call centre on

3 Sectional title units For sectional title units, you will not be required to deal with the consumption accounts, as same is handled by the body corporate, but a deposit may be required from the Purchaser, before any deposit held will be released to you. We will also advice the management company of registration on your behalf. 4. SARS & TAX ISSUES The tax registration numbers of, the Seller, Purchaser and Agent, are required by SARS when we apply for the issuing of a Transfer Duty Receipt. SARS uses the property transfer process to collect outstanding TAX and VAT. SARS has the right to appoint the conveyancer as a tax collector on its behalf, to ensure that outstanding monies are deducted from the proceeds of the sale once the property has registered. Furthermore, SARS can rightfully withhold a Transfer Duty Receipt when there appears to be discrepancies with the Seller s tax affairs, or if the Purchaser or Agent has outstanding tax returns. 5. RETENTION OF PROCEEDS OF SALE OF PROPERTY IN SA OWNED BY NON-RESIDENTS FOR CGT OBLIGATION When the Seller of a property is not resident in South Africa, the proceeds of the sale could be subject to Capital Gains Tax. The act can compel the transferring attorney to retain a portion of the proceeds to cover CGT. The Prescribed rates are as follows: Natural person at 5%, Company or CC at 7.5% and Trusts at 10% of the net proceeds and must be held in trust to offset any possible claim SARS might have on the proceeds. CGT FOR SA RESIDENTS The first R2 million of gain or loss on disposal of a primary residence must be disregarded. This concession, known as the primary residence exclusion, means that most individuals will not be subject to CGT on the sale of their homes. If the proceeds on the sale of your primary residence, does not exceed R2 million, the transaction will be exempted from CGT. In such event you do not need to determine the base cost of the residence. This rule is not available under certain circumstances, for example, when you have not ordinarily resided in the residence throughout the period since 1 October 2001 or you have used part of it for trade purposes.

4 The inclusion rate is 33.3% of the profit for individuals and 66.6% for companies and trusts. This results in the effective capital gains tax (CGT) rate for individuals, companies and trusts increasing to 13.3% (maximum), 18.6% and 26.7% respectively. These changes will apply to disposals of assets from 1 March SELLER S ESTIMATED PROCEEDS The following deductions will have to be taken into account to calculate your expected proceeds from the sale: DEDUCTIONS FROM YOUR PROCEEDS BY CONVEYANCERS AMOUNT DUE ON ANY EXISTING MORTGAGE BOND When the Conveyancer notifies the bank of the sale of the property, the bank will furnish us with a bond cancellation amount, calculated as the current bond balance as at that date, plus provision for interest for approximately 3 months. On date of registration at the Deeds Office, the guarantees will pay into the Seller s bond account this balance together with interest up to the date of registration of transfer. Upon registration of transfer, the bank will do a reconciliation of the Seller s bond account and usually does a refund to the Seller within 2 to 3 days. You will be required to sign a refund nomination form with us when signing your transfer documents. Kindly note that on most bonds with an access facility, the bank will freeze the facility once cancellation figures are requested by us. If required, we can release funds again and obtain revised cancellation figures. EARLY CANCELLATION PENALTIES Most home loan agreements provide that any bond that has run for less than 24 months is subject to a maximum of 90 days penalty interest calculated from the date of instruction to cancel. On bonds older than 24 months, a 90 day penalty interest period normally applies and it is important to give notice to your bond holder of your intention to sell your property and cancel the bond, as soon as possible. This penalty can often be waived if a new bond on another property is taken from the same bank within 6 months. If the registration of the transfer exceeds 90 days, the penalty interest will fall away. AGENTS COMMISSION This amount is paid by the Conveyancer to the Estate Agent and is paid in accordance with the Agreement of Sale. PRO RATA OCCUPATIONAL RENTAL If the agreed occupation date falls after the date of registration, we will pay the pro rata amount due for up to 30 days to the Purchaser from the proceeds.

5 SELLER S ESTIMATED PROCEEDS The following deductions will have to be taken into account to calculate your expected proceeds from the sale: DEDUCTIONS FROM YOUR PROCEEDS BY CONVEYANCERS AMOUNT DUE ON ANY EXISTING MORTGAGE BOND When the Conveyancer notifies the bank of the sale of the property, the bank will furnish us with a bond cancellation amount, calculated as the current bond balance as at that date, plus provision for interest for approximately 3 months. On date of registration at the Deeds Office, the guarantees will pay into the Seller s bond account this balance together with interest up to the date of registration of transfer. Upon registration of transfer, the bank will do a reconciliation of the Seller s bond account and usually does a refund to the Seller within 2 to 3 days. You will be required to sign a refund nomination form with us when signing your transfer documents. EARLY CANCELLATION PENALTIES Most home loan agreements provide that any bond that has run for less than 24 months is subject to a maximum of 90 days penalty interest calculated from the date of instruction to cancel. On bonds older than 24 months, a 90 day penalty interest period normally applies and it is important to give notice to your bond holder of your intention to sell your property and cancel the bond, as soon as possible. This penalty can often be waived if a new bond on another property is taken from the same bank within 6 months. If the registration of the transfer exceeds 90 days, the penalty interest will fall away. AGENTS COMMISSION This amount is paid by the Conveyancer to the Estate Agent and is paid in accordance with the Agreement of Sale. Kindly note that on most bonds with an access facility, the bank will freeze the facility once cancellation figures are requested by us. If required, we can release funds again and obtain revised cancellation figures. PRO RATA OCCUPATIONAL RENTAL If the agreed occupation date falls after the date of registration, we will pay the pro rata amount due for up to 30 days to the Purchaser from the proceeds.

6 COSTS PAYABLE BY SELLER PRIOR TO TRANSFER BOND CANCELLATION FEE This is a fee payable to the attorneys acting for the bondholder (your bank). It is their fee for the cancellation of the Mortgage Bond at the Deeds Office and is dependent on the number of bonds which they must cancel. The fee to cancel one bond is approximately R COUNCIL CLEARANCE FIGURES, LEVY CLEARANCE OR HOME OWNERS CLEARANCE COSTS This amount must be paid in order to obtain the applicable necessary Clearance Certificates for transfer. ELECTRICAL COMPLIANCE AND GAS CERTIFICATE If the offer to purchase determines that the Seller is responsible for the issuing of the Electrical clearance and Gas certificate in terms of the Occupational Health and Safety Act, 1993 (Act 85 of 1993), and same is not furnished prior to registration, we will retain an amount deemed sufficient to cover the cost of the certificate on trust, until same is received. ABOUT US Services in abundance We strongly believe that you have to give value first to receive value in return. We have a high work ethic and take pride in the services we offer as a professional conveyancing firm. We would first and foremost like to be your attorney of choice, because off our superior level client service and experience in the current market climate. We endeavour to facilitate the successful conclusion of each unique transaction and thrive finding innovative solutions for any challenges arising from a transaction, both from a legal and practical perspective, whether it is facilitating bridging finance or finding a new home for the family cat! If we can assist you with free legal advice on the sale of your property, kindly contact Ters Roscher on: Ters@Roscherinc.co.za, (011) or Regards Roscher Inc Team

THE OFFER TO PURCHASE

THE OFFER TO PURCHASE PURCHASE PRICE R IN WORDS: All payments shall be paid in Cape Town, free of all bank charges. INITIAL PAYMENT The Purchaser shall pay an initial payment of 10 % of the purchase price,