The Law Society of the Northern Provinces has often been asked by members to give guidance on procedures or to lay down rules of practice on the ethical principles and codes of professional conduct that apply to property law practice. To this end a document Guidelines for conducting property law matters has been produced by the Property Law and Ethics committees. The document is intended to serve the needs of experienced conveyancers and newly qualified practitioners (who may not have had sufficient exposure to the practical and ethical aspects of conveyancing).
The guidance, which includes principles of practice that are widely accepted by conveyancing attorneys, is not exhaustive and must be read and applied together with the provisions of the Attorneys Act, 1979, other relevant legislation, and the conduct rules of the Law Society as well as the rulings on conveyancing and property law matters made by the Society from time to time.
Guidelines for conducting property law matters
Good Day I refer to the following point in the document attached: " With regard to the collection of Value-Added Tax, the Transfer Duty Section of the SARS has indicated that it intends discontinuing the practice of issuing a transfer duty exemption certificate in respect of a vatable transaction without an undertaking from the conveyancer that the Value-Added Tax due in respect of the transaction will be paid on registration of the transfer." Sars does not request undertakings for all transactions. The Fixed Property Risk/Audit Section of the Enforcement division of Sars does a risk/audit profile on the seller/buyer/estate agent/director/member/trustee and only if they are a risk for Sars according to Sars Compliance requirements for all taxes administered by Sars then only will Sars request an undertaking. When Sars identifies schemes or tax gaps in the Vatable transactions Sars will profile for an investigation/audit.The undertaking can be for any tax not only for the Vat on the sale.
Regarding the Non Vendors Selling Property: Sars can appoint the Conveyancers as agents. If the seller/buyer/estate agents have any outstanding returns for any type of tax administered by Sars they have 7 working days to render the returns if they do not render the returns in 7 days Sars will take other steps to collect those returns. Again Sars looks at the seller/buyer/estate agent/director/member/trustee. Sars also requests that the seller/buyer/estate agent/director/member/trustee register for tax if they must be register for tax.