Wednesday, April 16, 2014

Property sales to foreigners

We’re not hoping to sell real estate any time soon to Martians, but want to explain the process selling property to foreign citizens or companies, otherwise known as aliens.

Illegal Aliens

There are procedures and requirements that must be complied with in certain circumstances. For instance, sales to illegal aliens are prohibited ie the person or company must be legally established in South Africa. Foreign companies need to be locally registered to qualify and non-residents staying for longer periods may have to apply for a residence permit in terms of the Aliens Control Act.  Other than that you are good to sell to an Alien.. If you dare! If you or your buyer is a foreign company our offices are able to help in getting that company locally registered with our Registrar of Companies to qualify. Where shares in a company are owned by a non-resident, a South African officer for the company also needs to be appointed.

Mortgage Bonds

Cash is good, but if a mortgage bond is required to finance a foreign purchase, no more than 50% of the purchase price may be bonded. Money brought into the country to acquire property may also be taken out again provided at the time of repatriation the full records of the funds coming in need to be retained and supplied. Please check compliance requirements with our offices.

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