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The South African Revenue Service (SARS) and The Department of Rural Development and Land Reform met and agreed that the Transfer Duty Receipt (TDREP), for plot and plan transactions, should show the amount of the land on the date of registration in the Deeds Office.
 
Therefore, when working out the consideration to be shown on the TDREP it’s important to take into account the date registration takes place:
 
  • If the seller agrees to provide the purchaser with a completed dwelling on the date of registration and the full consideration of the plot and plan is paid to the seller, the total consideration of the plot and plan should be shown on the TDREP.

  • If the seller agrees to provide the purchaser with a plot on the date of registration and the building contract only starts after registration, only the consideration of the plot should be shown on the TDREP.

  • If the seller agrees to provide the purchaser with only a plot on the date of registration and a building contract is agreed with a different contractor, only the consideration of the plot should be shown on the TDREP. This is irrespective if the building was completed on the date of registration by the other contractor.
 
Top Tip: The Sale Agreement together with the Building Contract must be provided to SARS to help determine the correct consideration and requirements to be entered on the TDREP.
 

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Related Documents

LAPD-TD-G01 – Transfer Duty Guide

TD-AE-02-G02 – Guide for Transfer Duty via eFiling – External Guide

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