Late last year, the Office of the Chief Registrar issued an important circular suspending the operation of a new Registrars’ Conference Resolution, namely RCR 9/2024.
Introduced to clarify the correct transaction date to insert on a transfer duty receipt in the context of the distribution of property following a divorce, further investigation has revealed a potential conflict between RCR 9/2024 and the contents of SARS’ Transfer Duty Guide (‘the Guide’).
RCR 9/2024 addresses the unique instance where parties conclude an addendum to a settlement agreement regulating, among other things, the disposal of property after the settlement agreement was made an order of court following divorce proceedings. During the last Registrars’ Conference, it was agreed that the relevant transaction date is deemed to be the date of divorce under South African law.
According to paragraph 4.3.2. of the Guide, however, in circumstances where a settlement in relation to immovable property is finalised post-divorce proceedings, the date of acquisition is the date on which the parties subsequently settled – not the date of divorce.
In the context of the non-transactional acquisition of property, the ‘date of acquisition’ is interpreted to mean ‘the date upon which the person who so acquired the property became entitled thereto’, per section 1 of the Transfer Duty Act.
In light of this clear inconsistency, RCR 9/2024 is suspended with immediate effect. It will be discussed – and possibly withdrawn – at the next Registrars’ Conference.
Do you have a property-related enquiry? Contact us at info@stbb.co.za for professional legal assistance.