A retired couple, married in community of property, have a primary property plus a secondary property and wants to transfer both properties to their working children. There are no bonds on the properties and they will be registering living rights on the p
Important:
This answer is based on tax law for the tax year ending 28 February 2020.
Answer:
The request relating to the deed of sale is not a tax related one. It is our understanding that, 1n terms of Section 2 of the Alienation of Land Act, in order for an agreement relating to the sale of immovable property to be valid, it must be in writing and signed and dated by both parties. The wording of the limited interest, which can be a usufruct or habitio is best done by a lawyer or specialising in immovable property transactions. They are basically disposing of the bare dominium to the children.
We don’t know what you mean with transfer the properties to the children – specifically because you refer to the deed of sale.
A donation will arise if the part disposal of the properties, in this case, is done gratuitously – see section 55 of the Income Tax Act. The meaning of the word “donation” is any gratuitous disposal of property including any gratuitous waiver or renunciation of a right. It would be so if there is no quid pro quo.