Welcome to Clark Cupido, a niche, consumer focused, specialist, property law firm.

Welcome to Clark Cupido, a niche, consumer focused, specialist, property law firm. Our objective is to be unlike any other law firm out there and our manifesto is to guarantee our clients, being the consumer, our real estate partners and the mortgage origination industry, a client experience unique to this firm. We aim to achieve this, quite simply, by focusing on the needs and requirements of you the client. Our aim is to provide service excellence in a highly competitive market as our primary objective and our drive is to become the first legal services firm that comes to mind when you, our client, feel the need to consult an attorney on a property related, legal matter. At Clark Cupido our legal practitioners and Associate Partners have been handpicked from other law firms and financial institutions with one goal in mind to offer the best, most highly specialized, top end service to our clients, making use of cutting edge technology, and vast amounts of legal and banking experience and expertise. 1 www.clarkcupido.co.za

Introduction and Directory of Services As part of our unique service delivery we will consult with you the client at a place where it would be most convenient for you. Experience and our own market research have shown that most clients would choose for the consultation to take place either at their home or at their place of work. Our entire professional team has state of the art laptops and smart phones issued to them to ensure that out of the office consulting is as seamless and professional as possible. For those that wish to consult with us at our offices we have a network of high end offices available to us throughout the Peninsula, via our associate network, as well as our fully operational offices in Church Street, Cape Town. (See back of booklet for details) 2

Clark Cupido specialises in the following legal services: PROPERTY & CONVEYANCING Transfer of freehold and leasehold properties (conveyancing) Registration of mortgage bonds and notarial bonds (to secure obligations) Proclamation of townships Rezoning of properties Registration of servitudes and other real rights against property by notarial deeds Preparing agreements relating to property ownership, e.g. joint ventures and partnerships Opening of sectional title registers Ownership through share blocks Lease agreements Subdivision of land Building contracts Service agreements Acquisition of propertyowning companies or close corporations...continued on next page 3

Directory of Services CORPORATE & COMMERCIAL Advice on the structuring of transactions Advice on the selection of the most appropriate entity for transactions Planning of group structures Advice on the Companies Act Formation of companies, close corporations and partnerships Formation and use of business trusts Drafting and vetting of agreements such as sale agreements, leases, supply agreements, shareholders agreements, insurance policies, option agreements and general commercial advisory services WILLS AND ESTATES Estates and Trusts Drafting of wills, codicils, living wills, drafting of wills trusts, inter vivos trusts Administration of deceased estates. GENERAL LITIGATION Magistrates court, high court, debt collecting/debt counselling 4

FAMILY LAW Divorce Divorce Mediations Ante nuptial Agreements Maintenance Custody Agreements for Civil Unions NOTARIAL Drafting and Registration of Antenuptial Contracts; Drafting and Registration of Notarial Bonds (General and Special); Authentication of documents to be utilized outside the borders of the Republic of South Africa; Registration of Prospecting Contracts; Drafting and Registration of Universal Partnership of Succession Agreements. For fields of the law where we are not able to offer a specialist service, Clark Cupido has formed strong associations with attorney firms offering these specialities, and will refer its clients to these firms where the same guarantees for service excellence will apply. 5 www.clarkcupido.co.za

Bond Repayment Factor Table The table below gives the monthly repayment per R1,000 of a loan with an interest rate between 5,00% and 19,75% per annum, over a period of 5, 10, 15, 20, 25 or 30 years. To find the relevant factor, follow the row for interest rate and the column % 5 10 15 20 25 30 5,00 5,25 5,50 5,75 6,00 6,25 6,50 6,75 7,00 7,25 7,50 7,75 8,00 8,25 8,50 8,75 9,00 9,25 9,50 9,75 10,00 10,25 10,50 10,75 11,00 11,25 11,50 11,75 12,00 12,25 12,50 12,75 13,00 13,25 18,87 18,99 19,10 19,22 19,33 19,45 19,57 19,68 19,80 19,92 20,04 20,16 20,28 20,40 20,52 20,64 20,76 20,88 21,00 21,12 21,25 21,37 21,49 21,62 21,74 21,87 21,99 22,12 22,24 22,37 22,50 22,63 22,75 22,88 10,61 10,73 10,85 10,98 11,10 11,23 11,35 11,48 11,61 11,74 11,87 12,00 12,13 12,27 12,40 12,53 12,67 12,80 12,94 13,08 13,22 13,35 14,49 13,63 13,77 13,92 14,06 14,20 14,35 14,49 14,64 14,78 14,93 15,08 7,91 8,04 8,17 8,30 8,44 8,57 8,71 8,85 8,99 9,13 9,27 9,41 9,56 9,70 9,85 9,99 10,14 10,29 10,44 10,59 10,75 10,90 11,05 11,21 11,37 11,52 11,68 11,84 12,00 12,16 12,33 12,49 13,66 12,82 6,60 6,74 6,88 7,02 7,16 7,31 7,46 7,60 7,75 7,90 8,06 8,21 8,36 8,52 8,68 8,84 9,00 9,16 9,32 9,49 9,65 9,82 9,98 10,15 10,32 10,49 10,66 10,84 11,01 11,19 11,36 11,54 11,72 11,89 5,85 5,99 6,14 6,29 6,44 6,60 6,75 6,91 7,07 7,23 7,39 7,55 7,72 7,88 8,05 8,22 8,39 8,56 8,74 8,91 9,09 9,26 9,44 9,62 9,80 9,98 10,16 10,35 10,53 10,72 10,90 11,09 11,28 11,47 5,37 5,52 5,68 5,84 6,00 6,16 6,32 6,49 6,65 6,82 6,99 7,16 7,34 7,51 7,69 7,87 8,05 8,23 8,41 8,59 8,78 8,96 9,15 9,33 9,52 9,71 9,90 10,09 10,29 10,48 10,67 10,87 11,06 11,26 6

for your term to where they intersect: the number in this cell is your bond repayment factor. For example: the monthly repayment of a loan of R100,000 at an interest rate of 12,00% to be repaid over 20 years is calculated as follows: R100,000/1,000 x 11,01 = R1,101 per month. % 5 10 15 20 25 30 13,50 13,75 14,00 14,25 14,50 14,75 15,00 15,25 15,50 15,75 16,00 16,25 16,50 16,75 17,00 17,25 17,50 17,75 18,00 18,50 18,75 19,00 19,25 19,50 19,75 20,00 20,25 20,50 20,75 21,00 21,25 21,50 21,75 22,00 23,01 23,14 23,27 23,40 23,53 23,66 23,79 23,92 24,05 24,19 24,32 24,45 24,58 24,72 24,85 24,99 25,12 25,26 25,39 25,67 25,80 25,94 26,08 26,22 26,35 26,49 26,63 26,77 26,91 27,05 27,19 27,34 27,48 27,62 15,23 15,38 15,53 15,68 15,83 15,98 16,13 16,29 16,44 16,60 16,75 16,91 17,06 17,22 17,38 17,54 17,70 17,86 18,02 18,34 18,50 18,67 18,83 19,00 19,16 19,33 19,49 19,66 19,83 19,99 20,16 20,33 20,55 20,67 12,98 13,15 13,32 13,49 13,66 13,83 14,00 14,17 14,34 14,51 14,69 14,86 15,04 15,31 15,39 15,57 15,75 15,92 16,10 15,47 16,65 15,83 17,01 17,19 17,38 17,56 17,75 17,93 18,12 18,31 18,49 18,68 18,87 19,06 7 12,07 12,25 12,44 12,62 12,80 12,98 13,17 13,35 13,54 13,73 13,91 14,10 14,29 14,48 14,67 14,86 15,03 15,24 15,43 15,62 16,01 16,21 16,40 16,60 16,79 16,99 17,18 17,38 17,58 17,78 17,97 18,17 18,37 18,57 11,66 11,85 12,04 12,23 12,42 12,61 12,81 13,00 13,20 13,39 13,59 13,79 13,98 14,18 14,38 14,58 14,78 14,97 15,17 15,57 15,78 15,98 16,18 16,38 16,58 16,78 16,99 17,19 17,39 17,60 17,80 18,00 18,21 18,41 11,45 11,65 11,85 12,05 12,25 12,44 12,64 12,84 13,05 13,25 13,45 13,65 13,85 14,05 14,26 14,46 14,66 14,87 15,07 15,48 15,68 15,89 16,09 16,30 16,50 16,71 16,92 17,12 17,33 17,53 17,74 17,95 18,15 18,36

Fees and Transfer Costs Table TRANSFER FEES For the registration of a transfer of land of which the purchase price / value of property, whichever is the greater: Does not exceed R100,000 : R 36 Exceeds R100,000 but does not exceed R200,000 : R 78 Exceeds R200,000 but does not exceed R300,000 : R Exceeds R300,000 but does not exceed R600,000 : R Exceeds R600,000 but does not exceed R800,000 : R Exceeds R800,000 but does not exceed R1,000,000 : R Exceeds R1,000,000 but does not exceed R2,000,000 : R 1,098 Exceeds R2,000,000 but does not exceed R4,000,000 : R 1,522 Exceeds R4,000,000 but does not exceed R6,000,000 : R 1,846 Exceeds R6,000,000 but does not exceed R8,000,000 : R 2,197 Exceeds R8,000,000 but does not exceed R10,000,000 : R 2,568 Exceeds R10,000,000 but does not exceed R15,000,000 : R 3,057 Exceeds R15,000,000 but does not exceed R20,000,000 : R 3,671 Exceeds R20,000,000 : R 4,890 BOND FEES For the registration of a bond which the capital amount: Does not exceed R150,000 : R 376 Exceeds R150,000 but does not exceed R300,000 : R Exceeds R300,000 but does not exceed R600,000 : R Exceeds R600,000 but does not exceed R800,000 : R Exceeds R800,000 but does not exceed R1,000,000 : R Exceeds R1,000,000 but does not exceed R2,000,000 : R 1,098 Exceeds R2,000,000 but does not exceed R4,000,000 : R 1,522 Exceeds R4,000,000 but does not exceed R6,000,000 : R 1,846 Exceeds R6,000,000 but does not exceed R8,000,000 : R 2,197 Exceeds R8,000,000 but does not exceed R10,000,000 : R 2,568 Exceeds R10,000,000 but does not exceed R15,000,000 : R 3,057 Exceeds R15,000,000 but does not exceed R20,000,000 : R 3,671 Exceeds R20,000,000 but does not exceed R30,000,000 : R 4,278 Exceeds R30,000,000 : R 6,113 BOND CANCELLATIONS : R 115 BOND RELEASES : R 115 OTHER : R 319 8

TRANSFER COSTS TABLE The table below gives the transfer fee, VAT and transfer duty payable for Natural Persons, Companies and other Legal Persons. Purchase Price / Property Value Posts / Fee 15% VAT Petties Transfer Duty Total 10 000 20 000 25 000 30 000 35 000 40 000 45 000 50 000 55 000 60 000 65 000 70 000 75 000 80 000 85 000 90 000 95 000 100 000 4 800 4 800 4 800 4 800 4 800 4 800 4 800 4 800 4 800 4 800 4 800 4 800 4 800 4 800 4 800 4 800 4 800 4 800 885 885 885 885 885 885 885 885 885 885 885 885 885 885 885 885 885 885 36 36 36 36 36 36 36 36 36 36 36 36 36 36 36 36 36 36 6 821 6 821 6 821 6 821 6 821 6 821 6 821 6 821 6 821 6 821 6 821 6 821 6 821 6 821 6 821 6 821 6 821 6 821 9

Transfer Costs Table The table below gives the transfer fee, VAT and transfer duty payable for Natural Persons, Companies and other Legal Persons. Purchase Price / Property Value Posts / Fee 15% VAT Petties Transfer Duty Total 105 000 110 000 115 000 120 000 125 000 130 000 135 000 140 000 145 000 150 000 155 000 160 000 165 000 170 000 175 000 180 000 185 000 190 000 5 535 5 535 5 535 5 535 5 535 5 535 5 535 5 535 5 535 5 535 6 270 6 270 6 270 6 270 6 270 6 270 6 270 6 270 995 995 995 995 995 995 995 995 995 995 1 106 1 106 1 106 1 106 1 106 1 106 1 106 1 106 78 78 78 78 78 78 78 78 78 78 78 78 78 78 78 78 78 78 7 708 7 708 7 708 7 708 7 708 7 708 7 708 7 708 7 708 7 708 8 554 8 554 8 554 8 554 8 554 8 554 8 554 8 554 10

The table below gives the transfer fee, VAT and transfer duty payable for Natural Persons, Companies and other Legal Persons. Purchase Price / Property Value 395 000 400 000 405 000 410 000 415 000 420 000 425 000 430 000 435 000 440 000 445 000 450 000 455 000 460 000 465 000 470 000 475 000 480 000 485 000 Posts / Fee 15% VAT Petties 9 210 9 210 9 945 9 945 9 945 9 945 9 945 9 945 9 945 9 945 9 945 9 945 10 680 10 680 10 680 10 680 10 680 10 680 10 680 1 547 1 547 1 657 1 657 1 657 1 657 1 657 1 657 1 657 1 657 1 657 1 657 1 767 1 767 1 767 1 767 1 767 1 767 1 767 Transfer Duty Total 12 463 12 463 13 308 13 308 13 308 13 308 13 308 13 308 13 308 13 308 13 308 13 308 14 153 14 153 14 153 14 153 14 153 14 153 14 153 13

Transfer Costs Table 490 000 495 000 500 000 505 000 510 000 515 000 520 000 525 000 530 000 535 000 540 000 545 000 550 000 555 000 560 000 565 000 570 000 575 000 10 680 10 680 10 680 12 150 12 150 12 150 12 150 12 150 12 150 12 150 12 150 12 150 12 150 12 150 12 150 12 150 12 150 12 150 1 767 1 767 1 767 1 988 1 988 1 988 1 988 1 988 1 988 1 988 1 988 1 988 1 988 1 988 1 988 1 988 1 988 1 988 The table below gives the transfer fee, VAT and transfer duty payable for Natural Persons, Companies and other Legal Persons. Purchase Price / Property Value Posts / Fee 15% VAT Petties Transfer Duty Total 14 153 14 153 14 153 15 844 15 844 15 844 15 844 15 844 15 844 15 844 15 844 15 844 15 844 15 844 15 844 15 844 15 844 15 844 14

Transfer Costs Table The table below gives the transfer fee, VAT and transfer duty payable for Natural Persons, Companies and other Legal Persons. Purchase Price / Property Value Posts / Fee 15% VAT Petties Transfer Duty Total 675 000 680 000 685 000 690 000 695 000 700 000 705 000 710 000 715 000 720 000 725 000 730 000 735 000 740 000 745 000 750 000 755 000 760 000 13 620 13 620 13 620 13 620 13 620 13 620 15 090 15 090 15 090 15 090 15 090 15 090 15 090 15 090 15 090 15 090 15 090 15 090 2 208 2 208 2 208 2 208 2 208 2 208 2 429 2 429 2 429 2 429 2 429 2 429 2 429 2 429 2 429 2 429 2 429 2 429 17 780 17 780 17 780 17 780 17 780 17 780 19 471 19 471 19 471 19 471 19 471 19 471 19 471 19 471 19 471 19 471 19 471 19 471 16

Transfer Costs Table The table below gives the transfer fee, VAT and transfer duty payable for Natural Persons, Companies and other Legal Persons. Purchase Price / Property Value Posts / Fee 15% VAT Petties Transfer Duty Total 860 000 865 000 870 000 875 000 880 000 885 000 890 000 895 000 900 000 905 000 910 000 915 000 920 000 925 000 930 000 935 000 940 000 945 000 16 560 16 560 16 560 16 560 16 560 16 560 16 560 16 560 16 560 18 030 18 030 18 030 18 030 18 030 18 030 18 030 18 030 18 030 2 649 2 649 2 649 2 649 2 649 2 649 2 649 2 649 2 649 2 870 2 870 2 870 2 870 2 870 2 870 2 870 2 870 2 870 150 300 450 600 750 900 1 050 1 200 1 350 21 287 21 287 21 287 21 287 21 287 21 287 21 287 21 287 21 287 23 128 23 278 23 428 23 578 23 728 23 878 24 028 24 178 24 328 18

The table below gives the transfer fee, VAT and transfer duty payable for Natural Persons, Companies and other Legal Persons. Purchase Price / Property Value Posts / Fee 15% VAT Petties Transfer Duty Total 950 000 955 000 960 000 965 000 970 000 975 000 980 000 985 000 990 000 995 000 1 000 000 1 050 000 000 1 150 000 1 200 000 1 250 000 1 300 000 1 350 000 1 400 000 18 030 18 030 18 030 18 030 18 030 18 030 18 030 18 030 18 030 18 030 18 030 18 765 18 765 19 500 19 500 20 235 20 235 20 970 20 970 2 870 2 870 2 870 2 870 2 870 2 870 2 870 2 870 2 870 2 870 2 870 2 980 2 980 3 090 3 090 3 200 3 200 3 311 3 311 1 500 1 650 1 800 1 950 2 100 2 250 2 400 2 550 2 700 2 850 3 000 4 500 6 000 7 500 9 000 10 500 13 500 16 500 19 500 24 478 24 628 24 778 24 928 25 078 25 228 25 378 25 528 25 678 25 828 25 28 443 29 943 32 288 33 788 36 133 39 133 42 979 45 979 19

Transfer Costs Table The table below gives the transfer fee, VAT and transfer duty payable for Natural Persons, Companies and other Legal Persons. Purchase Price / Property Value Posts / Fee 15% VAT Petties Transfer Duty Total 1 450 000 1 500 000 1 550 000 1 600 000 1 650 000 1 700 000 1 750 000 1 800 000 1 850 000 1 900 000 1 950 000 2 000 000 2 100 000 2 200 000 2 300 000 2 400 000 2 500 000 2 600 000 21 705 21 705 22 440 22 440 23 175 23 175 23 910 23 910 24 645 24 645 25 380 25 380 26 115 26 850 27 585 28 320 29 055 29 790 3 421 3 421 3 531 3 531 3 641 3 641 3 752 3 752 3 862 3 862 3 972 3 972 4 082 4 193 4 303 4 413 4 523 4 634 22 500 25 500 28 500 31 500 34 500 37 500 40 500 44 500 48 500 52 500 56 500 60 500 68 500 76 500 86 000 97 000 108 000 119 000 49 824 52 824 56 669 59 669 63 514 66 514 70 360 74 360 79 205 83 205 88 050 92 050 101 319 110 165 120 510 132 355 144 200 156 046 20

The table below gives the transfer fee, VAT and transfer duty payable for Natural Persons, Companies and other Legal Persons. Purchase Price / Property Value Posts / Fee 15% VAT Petties Transfer Duty Total 2 700 000 2 800 000 2 900 000 3 000 000 3 100 000 3 200 000 3 300 000 3 400 000 3 500 000 3 600 000 3 700 000 3 800 000 3 900 000 4 000 000 4 100 000 4 200 000 4 300 000 4 400 000 4 500 000 30 525 31 260 31 995 32 730 33 465 34 200 34 935 35 670 36 405 37 140 37 875 38 610 39 345 40 080 40 815 41 550 42 285 43 020 43 755 4 744 4 854 4 964 5 075 5 185 5 295 5 405 5 516 5 626 5 736 5 846 5 957 6 067 6 177 6 287 6 398 6 508 6 618 6 728 130 000 141 000 152 000 163 000 174 000 185 000 196 000 207 000 218 000 229 000 240 000 251 000 262 000 273 000 284 000 295 000 306 000 317 000 328 000 167 891 179 736 191 581 203 427 215 272 227 117 238 962 250 808 262 653 274 498 286 343 298 189 310 034 321 879 334 048 345 894 357 739 369 584 381 429 21

Transfer Costs Table The table below gives the transfer fee, VAT and transfer duty payable for Natural Persons, Companies and other Legal Persons. Purchase Price / Property Value Posts / Fee 15% VAT Petties Transfer Duty Total 4 600 000 4 700 000 4 800 000 4 900 000 5 000 000 5 100 000 5 200 000 5 300 000 5 400 000 5 500 000 5 600 000 5 700 000 5 800 000 5 900 000 6 000 000 6 100 000 6 200 000 6 300 000 44 490 45 225 45 960 46 695 47 430 47 800 48 170 48 540 48 910 49 280 49 650 50 020 50 390 50 760 51 130 51 500 51 870 52 240 6 839 6 949 7 059 7 169 7 280 7 335 7 391 7 446 7 502 7 557 7 613 7 668 7 724 7 779 7 835 7 890 7 946 8 001 339 000 350 000 361 000 372 000 383 000 394 000 405 000 416 000 427 000 438 000 449 000 460 000 471 000 482 000 493 000 504 000 515 000 526 000 393 275 405 120 416 965 428 810 440 656 452 081 463 507 474 932 358 497 783 509 209 520 634 532 060 543 485 554 911 566 687 578 113 589 538 22

The table below gives the transfer fee, VAT and transfer duty payable for Natural Persons, Companies and other Legal Persons. Purchase Price / Property Value Posts / Fee 15% VAT Petties Transfer Duty Total 6 400 000 6 500 000 6 600 000 6 700 000 6 800 000 6 900 000 7 000 000 7 100 000 7 200 000 7 300 000 7 400 000 7 500 000 7 600 000 7 700 000 7 800 000 7 900 000 8 000 000 8 100 000 8 200 000 52 610 52 980 53 350 53 720 54 090 54 460 54 830 55 200 55 570 55 940 56 310 56 680 57 050 57 420 57 790 58 160 58 530 58 900 59 270 8 057 8 112 8 168 8 223 8 279 8 334 8 390 8 445 8 501 8 556 8 612 8 667 8 723 8 778 8 834 8 889 8 945 9 000 9 056 537 000 548 000 559 000 570 000 581 000 592 000 603 000 614 000 625 000 636 000 647 000 658 000 669 000 680 000 691 000 702 000 713 000 724 000 735 000 600 964 612 389 623 815 635 240 646 666 658 091 669 517 680 942 692 368 703 793 715 219 726 644 738 070 749 495 760 921 772 346 783 772 795 568 806 994 23

Transfer Costs Table The table below gives the transfer fee, VAT and transfer duty payable for Natural Persons, Companies and other Legal Persons. Purchase Price / Property Value Posts / Fee 15% VAT Petties Transfer Duty Total 8 300 000 8 400 000 8 500 000 8 600 000 8 700 000 8 800 000 8 900 000 9 000 000 9 100 000 9 200 000 9 300 000 9 400 000 9 500 000 9 600 000 9 700 000 9 800 000 9 900 000 10 000 000 59 640 60 010 60 380 60 750 61 120 61 490 61 860 62 230 62 600 62 970 63 340 63 710 64 080 64 450 64 820 65 190 65 560 65 930 9 111 9 167 9 222 9 278 9 333 9 389 9 444 9 500 9 555 9 611 9 666 9 722 9 777 9 833 9 888 9 944 9 999 10 055 746 000 757 000 768 000 779 000 790 000 801 000 812 000 823 000 834 000 845 000 856 000 867 000 878 000 889 000 900 000 911 000 922 000 933 000 818 419 829 845 841 270 696 864 121 875 547 886 972 898 398 909 823 921 249 932 674 944 100 955 525 966 951 376 989 802 1 001 227 1 012 653 24

The table below gives the transfer fee, VAT and transfer duty payable for Natural Persons, Companies and other Legal Persons. Purchase Price / Property Value Posts / Fee 15% VAT Petties Transfer Duty Total 10 100 000 10 200 000 10 300 000 10 400 000 10 500 000 10 600 000 10 700 000 10 800 000 10 900 000 11 000 000 1 000 11 200 000 11 300 000 11 400 000 11 500 000 11 600 000 11 700 000 11 800 000 11 900 000 66 300 66 670 67 040 67 410 67 780 68 150 68 520 68 890 69 260 69 630 70 000 70 370 70 740 71 110 71 480 71 850 72 220 72 590 72 960 10 110 10 166 10 221 10 277 10 332 10 388 10 443 10 499 10 554 10 610 10 665 10 721 10 776 10 832 10 887 10 943 10 998 11 054 11 109 946 000 959 000 972 000 985 000 998 000 1 011 000 1 024 000 1 037 000 1 050 000 1 063 000 1 076 000 1 089 000 1 102 000 1 115 000 1 128 000 1 141 000 1 154 000 1 167 000 1 180 000 1 026 567 1 039 993 1 053 418 1 066 844 1 080 269 1 093 695 1 107 120 1 120 546 1 133 971 1 147 397 1 160 822 1 174 248 1 187 673 1 201 099 1 214 524 1 227 950 1 241 375 1 254 801 1 268 226 25

Transfer Costs Table The table below gives the transfer fee, VAT and transfer duty payable for Natural Persons, Companies and other Legal Persons. Purchase Price / Property Value Posts / Fee 15% VAT Petties Transfer Duty Total 12 000 000 12 100 000 12 200 000 12 300 000 12 400 000 12 500 000 12 600 000 12 700 000 12 800 000 12 900 000 13 000 000 13 100 000 13 200 000 13 300 000 13 400 000 13 500 000 13 600 000 13 700 000 73 330 73 700 74 070 74 440 74 810 75 180 75 550 75 920 76 290 76 660 77 030 77 400 77 770 78 140 78 510 78 880 79 250 79 620 11 165 11 220 11 276 11 331 11 387 11 442 11 498 11 553 11 609 11 664 11 720 11 775 11 831 11 886 11 942 11 997 12 053 12 108 1 193 000 1 206 000 1 219 000 1 232 000 1 245 000 1 258 000 1 271 000 1 284 000 1 297 000 1 310 000 1 323 000 1 336 000 1 349 000 1 362 000 1 375 000 1 388 000 1 401 000 1 414 000 1 281 652 1 295 077 1 308 503 1 321 928 1 335 354 1 348 779 1 362 205 1 375 630 1 389 056 1 402 481 1 415 907 1 429 332 1 442 758 1 456 183 1 469 609 1 483 034 1 496 460 1 509 885 26

The table below gives the transfer fee, VAT and transfer duty payable for Natural Persons, Companies and other Legal Persons. Purchase Price / Property Value Posts / Fee 15% VAT Petties Transfer Duty Total 13 800 000 13 900 000 14 000 000 14 100 000 14 200 000 14 300 000 14 400 000 14 500 000 14 600 000 14 700 000 14 800 000 14 900 000 15 000 000 15 500 000 16 000 000 16 500 000 17 000 000 17 500 000 18 000 000 79 990 80 360 80 730 8 81 470 81 840 82 210 82 580 82 950 83 320 83 690 84 060 84 430 86 280 88 130 89 980 91 830 93 680 95 530 12 164 12 219 12 275 12 330 12 386 12 441 12 497 12 552 12 608 12 663 12 719 12 774 12 830 13 107 13 385 13 662 13 940 14 217 14 495 3 671 3 671 3 671 3 671 3 671 3 671 1 427 000 1 440 000 1 453 000 1 466 000 1 479 000 1 492 000 1 505 000 1 518 000 1 531 000 1 544 000 1 557 000 1 570 000 1 583 000 1 648 000 1 713 000 1 778 000 1 843 000 1 908 000 1 973 000 1 523 311 1 536 736 1 550 162 1 563 587 1 577 013 1 590 438 1 603 864 1 617 289 1 630 715 1 644 140 1 657 566 1 670 991 1 684 417 1 752 158 1 819 286 1 886 413 1 953 541 2 020 668 2 087 796 27

Transfer Costs Table The table below gives the transfer fee, VAT and transfer duty payable for Natural Persons, Companies and other Legal Persons. Purchase Price / Property Value 18 500 000 19 000 000 19 500 000 20 000 000 30 000 000 40 000 000 50 000 000 Posts / Fee 15% VAT Petties 97 380 99 230 101 080 102 930 139 930 176 930 213 930 14 772 15 050 15 327 15 605 21 155 26 705 32 255 3 671 3 671 3 671 3 671 4 890 4 890 4 890 Transfer Duty Total 2 038 000 2 103 000 2 168 000 2 233 000 3 533 000 4 833 000 6 133 000 2 154 923 2 222 051 2 289 178 2 356 306 3 700 075 5 042 625 6 385 175 28

BOND COSTS TABLE The table below provides the fee payable on the Capital Sum to register a mortgage bond. Capital Sum 10 000 50 000 100 000 105 000 125 000 130 000 150 000 155 000 175 000 180 000 200 000 205 000 250 000 255 000 300 000 320 000 350 000 355 000 400 000 405 000 450 000 455 000 500 000 505 000 600 000 605 000 700 000 705 000 800 000 805 000 900 000 905 000 1 000 000 Fee Posts / 15% Petties VAT 4 800 4 800 4 800 5 535 5 535 5 535 5 535 6 270 6 270 6 270 6 270 7 005 7 005 7 740 7 740 8 475 8 475 9 210 9 210 9 945 9 945 10 680 10 680 12 150 12 150 13 620 13 620 15 090 15 090 16 560 16 560 18 030 18 030 885 885 885 995 995 995 995 1 106 1 106 1 106 1 106 1 216 1 216 1 326 1 326 1 436 1 436 1 547 1 547 1 657 1 657 1 767 1 767 1 988 1 988 2 208 2 208 2 429 2 429 2 649 2 649 2 870 2 870 376 376 376 376 376 376 376 Total 7 161 7 161 7 161 8 006 8 006 8 006 8 006 8 962 8 962 8 962 8 962 9 807 9 807 10 652 10 652 11 617 11 617 12 463 12 463 13 308 13 308 14 153 14 153 15 844 15 844 17 780 17 780 19 471 19 471 21 287 21 287 22 22 29

Bond Costs Table Capital Sum 1 050 000 000 1 150 000 1 200 000 1 250 000 1 300 000 1 350 000 1 400 000 1 450 000 1 500 000 1 550 000 1 600 000 1 650 000 1 700 000 1 750 000 1 800 000 1 850 000 1 900 000 1 950 000 2 000 000 2 100 000 2 200 000 2 300 000 2 400 000 2 500 000 2 600 000 2 700 000 2 800 000 2 900 000 3 000 000 3 100 000 3 200 000 3 300 000 3 400 000 3 500 000 3 600 000 Fee Posts / 15% Petties VAT 18 765 18 765 19 500 19 500 20 235 20 235 20 970 20 970 21 705 21 705 22 440 22 440 23 175 23 175 23 910 23 910 24 645 24 645 25 380 25 380 26 115 26 850 27 585 28 320 29 055 29 790 30 525 31 260 31 995 32 730 33 465 34 200 34 935 35 670 36 405 37 140 2 980 2 980 3 090 3 090 3 200 3 200 3 311 3 311 3 421 3 421 3 531 3 531 3 641 3 641 3 752 3 752 3 862 3 862 3 972 3 972 4 082 4 193 4 303 4 413 4 523 4 634 4 744 4 854 4 964 5 075 5 185 5 295 5 405 5 516 5 626 5 736 Total 23 943 23 943 24 788 24 788 25 633 25 633 26 479 26 479 27 324 27 324 28 169 28 169 29 014 29 014 29 860 29 860 30 705 30 705 31 550 31 550 32 819 33 665 34 510 35 355 36 200 37 046 37 891 38 736 39 581 40 427 41 272 42 117 42 962 43 808 44 653 45 498 30

Capital Sum 3 700 000 3 800 000 3 900 000 4 000 000 4 100 000 4 200 000 4 300 000 4 400 000 4 500 000 4 600 000 4 700 000 4 800 000 4 900 000 5 000 000 5 100 000 5 200 000 5 300 000 5 400 000 5 500 000 5 600 000 5 700 000 5 800 000 5 900 000 6 000 000 6 100 000 6 200 000 6 300 000 6 400 000 6 500 000 6 600 000 6 700 000 6 800 000 6 900 000 7 000 000 7 100 000 7 200 000 Fee Posts / 15% Petties VAT 37 875 38 610 39 345 40 080 40 815 41 550 42 285 43 020 43 755 44 490 45 225 45 960 46 695 47 430 47 800 48 170 48 540 48 910 49 280 49 650 50 020 50 390 50 760 51 130 51 500 51 870 52 240 52 610 52 980 53 350 53 720 54 090 54 460 54 830 55 200 55 570 5 846 5 957 6 067 6 177 6 287 6 398 6 508 6 618 6 728 6 839 6 949 7 059 7 169 7 280 7 335 7 391 7 446 7 502 7 557 7 613 7 668 7 724 7 779 7 835 7 890 7 946 8 001 8 057 8 112 8 168 8 223 8 279 8 334 8 390 8 445 8 501 Total 46 343 47 189 48 034 48 879 50 048 50 894 51 739 52 584 53 429 54 275 55 120 55 965 56 810 57 656 58 081 58 507 58 932 59 358 59 783 60 209 60 634 61 060 61 485 61 911 62 687 63 113 63 538 63 964 64 389 64 815 65 240 65 666 66 091 66 517 66 942 67 368 31

Bond Costs Table Capital Sum 7 300 000 7 400 000 7 500 000 7 600 000 7 700 000 7 800 000 7 900 000 8 000 000 8 100 000 8 200 000 8 300 000 8 400 000 8 500 000 8 600 000 8 700 000 8 800 000 8 900 000 9 000 000 9 100 000 9 200 000 9 300 000 9 400 000 9 500 000 9 600 000 9 700 000 9 800 000 9 900 000 10 000 000 10 100 000 10 200 000 10 300 000 10 400 000 10 500 000 10 600 000 10 700 000 10 800 000 55 940 56 310 56 680 57 050 57 420 57 790 58 160 58 530 58 900 59 270 59 640 60 010 60 380 60 750 61 120 61 490 61 860 62 230 62 600 62 970 63 340 63 710 64 080 64 450 64 820 65 190 65 560 65 930 66 300 66 670 67 040 67 410 67 780 68 150 68 520 68 890 Posts / Petties Fee 15% VAT 8 556 8 612 8 667 8 723 8 778 8 834 8 889 8 945 9 000 9 056 9 111 9 167 9 222 9 278 9 333 9 389 9 444 9 500 9 555 9 611 9 666 9 722 9 777 9 833 9 888 9 944 9 999 10 055 10 110 10 166 10 221 10 277 10 332 10 388 10 443 10 499 Total 67 793 68 219 68 644 69 070 69 495 69 921 70 346 70 772 71 568 71 994 72 419 72 845 73 270 73 696 74 121 74 547 74 972 75 398 75 823 76 249 76 674 77 100 77 525 77 951 78 376 78 802 79 227 79 653 80 567 80 993 81 418 81 844 82 269 82 695 83 120 83 546 32

Capital Sum 10 900 000 11 000 000 1 000 11 200 000 11 300 000 11 400 000 11 500 000 11 600 000 11 700 000 11 800 000 11 900 000 12 000 000 12 100 000 12 200 000 12 300 000 12 400 000 12 500 000 12 600 000 12 700 000 12 800 000 12 900 000 13 000 000 13 100 000 13 200 000 13 300 000 13 400 000 13 500 000 13 600 000 13 700 000 13 800 000 13 900 000 14 000 000 14 100 000 14 200 000 14 300 000 14 400 000 69 260 69 630 70 000 70 370 70 740 71 110 71 480 71 850 72 220 72 590 72 960 73 330 73 700 74 070 74 440 74 810 75 180 75 550 75 920 76 290 76 660 77 030 77 400 77 770 78 140 78 510 78 880 79 250 79 620 79 990 80 360 80 730 8 81 470 81 840 82 210 Posts / Petties Fee 15% VAT 10 554 10 610 10 665 10 721 10 776 10 832 10 887 10 943 10 998 11 054 11 109 11 165 11 220 11 276 11 331 11 387 11 442 11 498 11 553 11 609 11 664 11 720 11 775 11 831 11 886 11 942 11 997 12 053 12 108 12 164 12 219 12 275 12 330 12 386 12 441 12 497 Total 83 971 84 397 84 822 85 248 85 673 86 099 86 524 86 950 87 375 87 801 88 226 88 652 89 077 89 503 89 928 90 354 90 779 91 205 91 630 92 056 92 481 92 907 93 332 93 758 94 183 94 609 95 034 95 460 95 885 96 311 96 736 97 162 97 587 98 013 98 438 98 864 33

Bond Costs Table and Transfer Procedure Capital Sum 14 500 000 14 600 000 14 700 000 14 800 000 14 900 000 15 000 000 15 500 000 16 000 000 16 500 000 17 000 000 17 500 000 18 000 000 18 500 000 19 000 000 19 500 000 20 000 000 82 580 82 950 83 320 83 690 84 060 84 430 86 280 88 130 89 980 91 830 93 680 95 530 97 380 99 230 101 080 102 930 Posts / Petties Fee 15% VAT 12 552 12 608 12 663 12 719 12 774 12 830 13 107 13 385 13 662 13 940 14 217 14 495 14 772 15 050 15 327 15 605 3 671 3 671 3 671 3 671 3 671 3 671 3 671 3 671 3 671 3 671 Total 99 289 99 715 100 140 100 566 100 991 101 417 104 158 106 286 108 413 110 541 112 668 114 796 116 923 119 051 121 178 123 306 * Should the capital exceed R 20 million the fee shall increase by R325 for each R100 000.00 thereafter. PLEASE NOTE Fees and charges listed in this booklet are per individual transfer, bond registration or bond cancellation (as at 1 June 2018). If a transaction involves more than one property or bond cancellation, fees and charges must be adapted accordingly. DISCLAIMER All estimated calculations are provided for general information purposes only and do not constitute professional advice. 34

TRANSFER PROCEDURE Once an Offer to Purchase is duly signed by all parties it is handed to Conveyancing Attorneys, appointed by the seller, who then proceed with the formal process of conveying ownership of the property from the seller to the purchaser. At the end of this process the attorneys ensure that the Title for the property are delivered to the purchaser. The process involves a number of simultaneous steps all of which are managed by the Conveyancing Attorneys: RECEIPT OF COPY OF SALE AGREEMENT AND INSTRUCTIONS TO PROCESS TRANSFER OF OWNERSHIP The Conveyancer will be guided by the contents of the Sale Agreement concluded between the purchaser and the seller as recorded in the agreement. The Conveyancer will contact the purchaser and seller, call for the suspensive conditions to be fulfilled and call for a deposit where applicable. SEARCH OF DEEDS OFFICE RECORDS The Conveyancer will conduct a search of the records of the relevant to determine the property details, records of ownership and any mortgage bonds which might be registered against the property. 35

Transfer Procedure EXISTING BOND ON THE PROPERTY If the seller caused a bond to be registered over the property in the past the bond will serve as a block to any efforts to transfer ownership of the property. The Conveyancer is therefore obliged to contact the bondholder for cooperation in the process and will address a letter to the bondholder advising it of the fact that the property has been sold and calling upon it to forward the seller s title deed to the Conveyancer [the bank holds the title deed as part of its security]. The Conveyancer will simultaneously ask the bondholder to advise him of the amount required to pay off the existing bond on registration of transfer and request the bondholder to instruct its own attorneys to prepare the appropriate documentation required by the to have the bond cancelled at time of registration of transfer of the property to the purchaser. As most banks are unable to trace the file in which the title deed and bond are retained without an account number, it is important that the particulars of the bond account number be reflected in the information section of the Sale Agreement. Most banks require a certain minimum period of notice [+ 3 months] for the cancellation of any bonds held by them failing which they are entitled to charge a penalty. Sufficient time should therefore be allowed for this notice period. PERMISSION FROM MUNICIPALITY It is not permitted in law for any property to be transferred without the written permission of the municipality. This permission will only be given by the 36

municipality if all money owing to it has been paid. The Conveyancer will therefore write to the municipality and will request from it a statement of all money due to it. This statement [besides taking longer and longer to obtain] seldom bears any resemblance to the monthly statement which the seller has been receiving and is invariably a potential source of debate. The statement will include particulars of all arrears in respect of rates and services, the balance of rates for (in certain municipalities) the rest of the current financial year and furthermore an estimate for approximately 3 months in advance of the average services bill. Although it is often a bitter pill to swallow it is invariably in the best interests of the transaction for the seller to pay the bill and argue later. This will at least enable the transfer process to proceed to finality without unnecessary delays. Part of the amount paid [the rates for the period from transfer to the end of the financial year of the municipality normally 1 July to 30 June] will be for the account of the purchaser who will be required to pay his share to the Conveyancer on request. PREPARATION OF PRELIMINARY DOCUMENTS On receipt of the particulars and subject to all suspensive conditions having being fulfilled, the Conveyancer will proceed to prepare documentation which is required for and South African Revenue Service purposes to be signed by the seller and the purchaser. It is therefore self explanatory that if either of the parties is going to be away during the relevant period the transfer will be delayed unless adequate arrangements are made for signature before their departure. 37

Transfer Procedure SIGNATURE AND COSTS On signature of the preliminary documents, the Conveyancer will ask the purchaser to settle the transfer costs account. The account which the Conveyancer will present will include the Conveyancer s own fee plus Vat thereon, the transfer duty [if applicable transfer duty is the sales tax applicable to property sales] and the fee charged by the for processing the transaction. It is important that the purchaser settle these costs at least 6 weeks before the scheduled date of transfer as the Conveyancer is required to pay the transfer duty due on the transaction to the South African Revenue Service before the can be approached for the registration of the transfer. Transfer duty is payable [at varying rates] on all sales where the property is not part of a VAT registered enterprise and where the purchase price is more than R600 000.00, as per the tariff contained herein. BUYER S BOND If the purchaser is relying on a bond to pay for the property then the bank granting the bond will appoint attorneys of their choosing to prepare the standard bond documentation required by the bank. These attorneys will liaise with the Conveyancer to obtain the information which they require to enable them to prepare their bond documents. The bond attorneys will make independent arrangements with the purchaser for signature of their documents and will present their own bill for their services to the purchaser. It is very important that the purchaser 38

understand clearly the conditions set by the bank as part and parcel of the bond as failure to comply with the conditions could cause the bond to become useless and thereby expose the purchaser to last minute financial embarrassment. FINAL PHASE When everybody is ready (i.e. the bond attorneys documents are signed, the bond cancellation attorneys consent to cancellation is in their possession and duly signed by the bondholder, the transfer duty receipt and rates clearance have been received), the Conveyancer will contact all the other attorneys involved and arrange simultaneous lodgement at the. On the prearranged date all the attorneys simultaneously hand their folders of papers into the. These papers are then collated by the and allocated to a specific Examiner. The Examiner inspects all the documents, and if found to be in order, approves the documents for registration. This procedure in the takes approximately ten days. If any difficulties are discovered in any of the papers, the documents are rejected. If the documents are approved for registration the Conveyancer, after ensuring that all the finances for the transaction have either been paid or alternatively secured, will arrange with all the attorneys concerned for actual registration to take place. At the moment of registration ownership passes from the seller to the buyer. On that day the seller receives his purchase price and the transaction is complete. 39

Transfer Procedure and Capital Gains HOW LONG DOES IT TAKE? It is very difficult to estimate precisely how long a transfer takes from the time that the Conveyancer receives his instructions. If one is forced to make an estimate, then one can assume that if all the parties involved in the transaction, perform their function timeously, that the entire transaction could be completed within a period of three months from the time of receipt of the initial Sale Agreement. CONSEQUENCES OF REGISTRATION OF TRANSFER: Once transfer of ownership of the property is recorded in the Registry, the purchaser has full rights of ownership and can deal with the property as he sees fit subject only to such restrictions as might appear within the title deed to the property or the restrictions of the municipal zoning scheme. Zoning schemes constitute a set of rules and regulations which regulate the use of any property within a particular area for the mutual benefit of all. 40

CAPITAL GAINS TAX ON A PRIMARY RESIDENCE Capital Gains tax came into effect in South Africa on the 1 October 2001. Does it have any impact on you as an individual? Let s first look at a definition for capital gain: it is the profit you make when you sell a possession. A capital loss will take place should you sell the possession for less than what it had cost you. Capital Gains tax (CGT) forms part of the tax systems of most countries in the world. The happening that triggers any CGT event as the transaction is called is the disposal of an asset. Unless such a disposal occurs, no gain or loss arises. Once your taxable capital gain has been determined, it is included in the taxable income for that year of assessment in terms of section 26A of the Income tax Act. If you sustain an assessed capital loss for the year, that loss cannot be setoff against your taxable income, but it is carried forward to subsequent years, for set off against any future taxable capital gains. In South Africa individuals as well as companies, close corporations and trusts are subject to CGT. It includes any capital sales you make in or outside South Africa. Nonresidents who sell property or at least 20% of the share capital of a company where 80% or more of the net asset value of the company is attributable to immoveable property in South Africa are also liable to pay CGT. 41

Capital Gains Tax on a Primary Residence Certain assets have been excluded from CGT, you therefore do not have to pay CGT on the profit when you sell them; for now we are only going to look at your primary residence. The first R2 million profit you make if you sell your primary residence is excluded from CGT. Individuals are also exempt from CGT on the first R40 000 of capital gains per year, and this figure increases to R300 000.00 in the year in which an individual dies. The South African Revenue Service has a sophisticated computer system, which interfaces with systems in the Registry, Motor Vehicle Registry, JSE and financial institutions, so you cannot hide that capital gain! LET S EXPLAIN THE TERM PRIMARY RESIDENCE: 1. 2. The house must be individually owned (in your name), not by a trust, close corporation or company. The owner, or spouse of the owner, must reside in the house and use it as an ordinary residence. If part of the house is used for business, there will be a prorata inclusion for CGT calculations. Where more than one person holds an interest in a primary residence (eg: spouses married to each other out of community of property), the exclusion will be in proportion to the interest held by each party in the residence. 42

WHEN WILL CAPITAL GAINS TAX BE PAYABLE ON THE SALE OF A PRIVATE RESIDENCE? 1. After deduction of the first R2 million profit, the balance will be subject to tax, BUT only on primary residences with a gross value that exceeds R 2 million. In other words a property that qualifies as a primary residence that has a gross value of R 2 million or less is exempt from the payment of CGT and there after the first R 2 million of profit is further exempt from CGT. 2. Where the property is larger than 2 hectares the first 2 hectares will be exempt and the balance will be subject to CGT. 3. The part of the house that was used for business purposes. THE CALCULATION OF CAPITAL GAINS TAX ON A PRIMARY RESIDENCE. We said that a capital gain is the profit you make on selling your house. The selling price is deducted from the base cost. The base cost is calculated by taking the price you paid for the property and adding to that: costs for buying and selling the property and extensions to the property (not maintenance.) Costs you can include are: transfer costs, advertising, vat and estate agency commission. CGT must be paid in the year you sell the property. For individuals, it is calculated by adding 40% of the capital 43

Capital Gains Tax on a Primary Residence gain to your income for the year and taxed at the individual s marginal rate of income tax. The present maximum marginal rate of income tax for individuals is 45% and therefore individuals will pay a maximum of 18% of the capital gain. If a property is owned by a company, a close corporation or an ordinary Trust, 80% of the capital gain must be included in their taxable income. The income tax rate for a company or close corporation is 28% and these entities will therefore pay 22.4% of the capital gain in CGT, while Trusts, whose income tax rate is a flat rate of 45%, will pay 36% of the capital gain. CGT is only payable from the 1 October 2001. You can use the following methods to calculate CGT: 1. 2. The fair market value of the property as at 1 Oct 2001, called the valuation date. The valuation must have been carried out before the 30 September 2004 and the property valued according to its condition and in terms of prevailing market and economic conditions as at 1 October 2001. This would then constitute the base cost and be deducted from the eventual selling price of the property to determine the profit for the purposes of the CGT calculation. Where no fair market valuation was obtained and submitted and no accurate records maintained, the value as at 1 October 2001 (base cost) will be deemed to be 20% of the proceeds when sold. 44

3. The timeapportionment base cost, ie. The percentage of the total gain that was made after the 1 October 2001, by apportioning the amount of time the property was owned between the period before 1 October 2001 and the period thereafter until the sale. If you have a second, or more properties, be it for holiday or investment purposes, you will be liable for CGT when selling the property. Before the implementation of CGT we were only taxed on income earned from assets, now we are also taxed on the profits should we sell the asset. The rationale was to broaden the tax base as companies and wealthy individuals could build up a large capital base that was never taxed. Like it or not, Capital Gains Tax is here to stay. 45 www.clarkcupido.co.za

Meet the Team PAUL NORMAN CRESSWELL CLARK Paul was born in Cape Town, educated at Diocesan College (Bishops) and completed a B.Soc.Sci LLB at the University of Cape Town. He married his wife Tracy in 1992, and after he completed his national service and had a gap year overseas, Paul commenced his articles with the well known cape law firm Buchanan Boyes & Klossers. In January 1995 he joined the firm as an attorney and conveyancer. Paul was with STBB/Smith Tabata Buchanan Boyes (as they are now known) for 16 years, the last 10 of which as a director and the last 5 of which as an executive director responsible for the retail conveyancing division of the firm across all regions and all branches. Paul resigned on 31 January 2009 after just being appointed the firm s marketing and compliance director. The main reason for his resignation was to fulfil a lifelong ambition to start his own legal services practise with like minded thinking professionals. 46

MANDY CUPIDO Mandy Cupido has a diverse and impressive resume to date. She has a B Soc Science degree from UCT and a BProc degree from UWC. Mandy completed her articles at CK Friedlander, Shandling & Volks where she was admitted as an attorney and later as a Conveyancer. She then worked as a professional assistant at Smith Tabata Buchanan Boyes and in a short period of time worked her way up to a directorship. Mandy resigned from STBB/Smith Tabata Buchanan Boyes in December 2007 and commenced her association with Paul Clark Attorneys in 2012. 47

Notes 48