Page 13 - Robin Twaddle PTG 2017 Digital

OCCUPATIONAL INTEREST

Where occupation takes place on a particular date and transfer takes place after the
date of occupation, occupational interest is paid at an agreed amount for the period
of occupation until transfer. In most cases this is paid by the purchaser, who may take
occupation prior to transfer being registered. The terms should be stipulated in the deed of
sale. In some cases, it is the seller who is the one who has to stay on in the property he or
she has sold and where transfer has been registered. In this case, the seller will be required
to pay occupational interest to the purchaser. In general, on occupation, risk passes to
the purchaser. Clauses dealing with occupational interest and risk (who is at risk while the
purchaser is in occupation) should be included in the deed of sale.

CERTIFICATES

The contract of sale is required to include clauses which deal with the Electrical, Beetle,
Gas and Plumbing Certificate (where applicable).

ELECTRIC FENCE REGULATIONS

Regulation 12 of the “Electrical Machinery Regulations” require that you have an “electric
fence system certificate of compliance” if you install, add to, or alter an electric fence after
1 October 2012, or where there is a change of ownership of the premises on which the
system exists, if the change of ownership takes place after 1 October 2012.

DISCLOSURE OF LISTED INVASIVE SPECIES

The National Environmental Management Biodiversity Act (10 of 2004) requires that
the seller of an immovable property must, prior to the conclusion of the relevant sale
agreement, notify the purchaser of such immovable property, in writing, of the presence
of listed invasive species on the property. The obligation and the duty to remove could be
negotiated between the seller and the purchaser.

THE FICA CLAUSE

Cash transactions and FICA:
The Financial Intelligence Centre Act (38 of 2001) provides that Accountable institutions
(AI’s), which include attorneys and estate agents, (and is proposed to include professional
accountants and auctioneers in the near future), are required to file a report with the
Financial Intelligence Centre in regard to any cash transactions involving domestic and
foreign notes and coins, and travellers cheques above R25 000.

In addition, the transferring attorney and the estate agent are required to request certain
documents from both the seller and the purchaser, in compliance with FICA.

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