 joined by Ardenay Nal, who is a Mediterranean convencer at Hamid-Paul Tunis. Ardenay, good evening, and thank you so much for joining us on the show. Good evening, and thank you for having me. It's such a pleasure to have you with us, Ardenay. You know, I want to first just start with we're going to talk about non-residents buying or even selling property in South Africa. But that's one of the key things that they need to look at, I think, at a holistic level. I know you and I are going to go into the niche of grittings and some of the salient things that we always need to understand and things to watch out for. But at a very high level, what are some of the key considerations? Should they be aware of on the onset of their journey of whether buying or selling a property in South Africa? Look, I think buying a property in South Africa is a good investment opportunity for a lot of people. And I do believe when you are looking at purchasing property in South Africa, first thing is that you actually need to make sure that you do work with a great team, trickling down from either an agent, a private seller, all the way to attorneys that you actually do trust in taking you from point A to point Z and making the property process actually very smooth and helping you to, well, to actually to know everything that you need to know and to make sure that you do follow the correct procedures that are required in South Africa to make sure that the property transfer can actually take place. And I think, you know, one of the key things as you're saying in your remarks, Arnais, often a lot of non-South Africans certainly do see this as a potential destination to invest in property. I think property prices do sometimes seem quite lucrative for non-South Africans. And I think it can also just be a great addition to your overall investment portfolio. And I think that's why I wanted to get into some of the nitocrates and the logistics of it because, you know, in as much as buying property is relatively easy, we certainly do want to get a sense of some of the logistics that go in when you are a non-residents and non-South African looking to buy property this site. I think perhaps we'll start with, you know, the power of attorney because, I mean, that's one of the things I know when I first, you know, when I first bought my properties, I didn't even know about power of attorney. Certainly not when it comes to property. And so when the attorney sent through the documentation, I was like, okay, what is this? What is it for? So just take it through the power of attorney that they would essentially, you know, assign what's the purpose and of course what they need to look out for in that regard. So I think what needs to be established first is whether your client is actually based in South Africa and or whether they're actually based outside of South Africa. Obviously if they're based in South Africa, it's much easier because the client can either sign the documentation themselves or they can appoint somebody else to act on their behalf. We normally do recommend that an attorney is involved when it comes to the drafting of the power of attorney because it is something that is necessary to either go to the D's office or for the attorney's file itself. And also you wanna make sure that the correct procedures are followed to make it a valid document, okay? The second scenario where your client might be overseas, what is important to note here is that either the client might be signing all the documents yet and then they traveling overseas or they might be overseas and not have made their way to South Africa at all. There'll be two different scenarios we would to look at here. So the first one would to be if they had to leave the country but they are still here, normally we would require that they sign the power of attorney in South Africa before they actually go abroad. This way it's a valid documentation it does not need authentication. The problem comes in is if the client is already abroad there are certain rules and regulations which needs to be followed when it comes to documents being signed in a foreign country, okay? So it will be required that the power of attorney actually be authenticated in whichever country it is when it is signed. And obviously we will need the original document back. So it will cause a little bit of a delay in the process because they'll have to get it authenticated and then they'll have to make sure that it actually makes its way back to South Africa and to the conveyances. And obviously you need to make sure that the correct procedures are followed to make it a valid document to be used in the transfer process. If you are just joining us to see now in conversation with Adhani now as an attorney and conveyance at Hammond Hall attorneys. We're looking at how non-residents can buy and sell property. And of course on our Facebook page we know if you're checking in and commenting Kayleigh Dunley saying looking forward to hearing from Adhani now. And I hope that you are enjoying the show there and Kalei. And I can see that Colin Janssen is checked in and watching Queen Taco also checking in and watching the show of Ghebe Dui Matema also checking in there on our Facebook page. Do you keep the love coming through? And of course if you have any questions or comments this evening do you send them through on our Facebook page as we continue our conversation with Adhani. Now Adhani I think when we then look at buying a property as a non-South African I think one of the key things we certainly say to even South Africans while buying is that their costs the additional costs to buying property. What are some of the costs to buying as a foreign buyer? Especially because as South Africans often we even ourselves still get shocked at some of the various line items that we have to budget for when buying a property. So I would say some of the costs that the buyers actually need to be aware of if you look at the purchases would be your transfer duty. So transfer duty is a tax that's levied on the purchase price for anything that's over a million rand. Normally this is determined by the sliding scale provided by SOAS and that would be payable on registration well before registration to get our transfer duty receipt. So I would definitely say that there's something that the buyer should be aware of as your transfer duty. And then something else would also be that it might be that you've got a buyer who's actually purchasing from a developer per se and that would be applicable. Normally your offer to purchase would state that that is included in the purchase price but normally that is included in the purchase price buying from a development. Yeah so that would be one of the things or two of the things that I would say that your buyers need to be aware of. It's also just important to remember that it's either transfer duty or that that's applicable to a transaction. It can't be both. So I think a lot of people do get confused whether that and transfer duty is payable but it just cannot be both. It needs to be either or. And then also some of the costs I would rather say our sellers need to be aware of is your capital gains tax. So we aren't tax professionals but basically your capital gains tax would be a tax that's levied on your gain that is made from the sale of your property. So we would normally advise the clients to consult with an auditor or an accountant because they'll be actually in a position to calculate the capital gains for you. They'll be able to advise you what you are looking at. Obviously we can't advise on that because we don't specialise in that. So I would always advise speak to your auditor, speak to your accountant because they'll be able to advise you. And also there's certain exclusions that you look at. For example, when it comes to capital gains tax you have an exclusion of two million rand. However, this exclusion only applies to your natural people. It doesn't applies to companies, trusts, your closed corporations. And then there's obviously other exclusions that we can look at for improvements at the property. But once again, your accountant will be able to direct you into the right direction and they'll be able to give you more or less the figure that you're looking at at which you will be liable for. And unfortunately, if it's not your primary residence this two million rand does not actually apply to you at all. So it is something that people do tend to forget when they do purchase properties especially for investment purposes because if it's not your primary residence it's very difficult getting out of that one because sales will definitely pick up on that. And then something that should be considered as well is your withholding tax. Again, not a property or not a tax practitioner. So this would be to chat to your auditor, your accountant. But basically your withholding tax is for any property which is sold for over two million. It is actually required that a portion of the funds be withheld and paid over to sales. They normally say that the buyer needs to pay it over to sales but the attorneys do normally get involved and do or normally assist the client when it does come to those specific payments that needs to be made. Yeah. And I think, you know, Arlene, one of the things then that we have to explore is if you're going to be buying property you're going to need financing. In South Africa, we know that there are different ways that we were about financing our property purchases, whether you're borrowing from a friends and family or of course getting a home loan or other interesting ways of raising the capital. When we look at the various ways that non-South Africans can finance their purchase is a bond and option. And are there anything that they need to bear in mind in the event where they want to get a home loan facility with any of the local banks? So obviously first price would be to purchase a cash because then there's no worries of applying for bond. But when it does come to a bond, yes, they can actually apply for bond. However, it's highly unlikely that the banks would actually grant the buyer, the foreign purchaser, 100% home loan. So out of experience, it's normally between a 30 to 50 if lucky percent grant which they do obtain. So what they need to bear in mind is that 100% home loan is probably not going to happen. And they do need to have cash to actually make up the balance to secure the purchase price. And I am this evening in conversation with Adhani Nal, who's an attorney and conveyance at Hammond Hall Attorneys. We're looking at how non-residents can buy and sell property. I can see all the love that we're getting on our Facebook page. Do you keep sending that love? Certainly do continue tagging your friends and family. And of course, sharing this live, I see Tashikorms tuning in and watching and also tagging her friends and family. Katler-Hom Tem, who's saying great advice. Thank you. We absolutely love that you're enjoying it and finding the advice useful, Katler-Hom. And so glad you're in the same sellers costs when selling one bond cancellation costs and the second is your COC. And I want us to perhaps, you know, look at that. I mean, when we sell obviously, I don't know, as a seller, there are a few costs that are associated with selling, not as much as when you're buying, but when you haven't sold the property, you may not know of them. So let's assume for purposes of this, it's a bank financed property. They were able to get some financing from one of the major banks. So from the seller side, what are some of those other, just because it's literally small costs. I mean, earlier you mentioned, for instance, the initial, of course, be mindful of capital gains tax and withholding tax, but I think in the normal sale of business, what are those other associated costs? So speaking in a normal transaction, so you would, if there's a bond rich or over the property, you would definitely have to look at the costs for actually cancelling the bond and then your COC. If there's a gas compliance certificate, which needs to be provided as well, but your COC, the gas compliance certificate, there might even be, for instance, where a B2L certificate is required or for a damp certificate is required, but all of these stuff would be actually stipulated in your offer to purchase with regards to the specific certificates which are required for registration to take place. So even though these certificates might not be a deed's office requirement, it still is a requirement that needs to be complied with before registration can take place. So normally, you know, obviously it will depend on where the property is, if it's at coast, if it's in the coastal area, if it's inland, because that would also depend on where the B2L certificate is applicable. Obviously a COC needs to be supplied and a gas certificate needs to be supplied if you do have gas on the premises. And then you would also look at your rates. So how it normally works is, rates figures are requested three to four months in advance. So the client will be requested to pay that specific amount in order to obtain a rate certificate. Okay, normally the clients do get a fright because it can either be a very big amount or not so big, but in order for council to actually issue us with a rates clearance certificate which is required for the deed's office, the client will be required to pay that amount of money in order for us to obtain a certificate. It is also important to remember that normally the sellers do get a refund because normally transfer does happen before the three to four months has expired and council does refund the client on a pro-rata basis after registration has taken place. And I think, you know, one of the key things is when you are aware of the admin that lands ahead of you, whether you're a buyer or a seller, it certainly does make the process so much better, I think more often than not. The first time I sold, I wasn't aware of some of the steps. I suppose the upside is that selling is actually easier and the slightly less admin certainly when you are the seller and then when you're on the other side purchasing that property. Now Adene, one of the things of course is if you're a non-South African and South Africans, we go through this as well, is you may be looking at different vehicles to use to purchase a property. So can foreign companies or foreign trust be able to purchase property in South Africa and how would that process differ if at all? Yes, your foreign companies and trust can actually purchase a property in South Africa. However, there are certain requirements that have to be made. So first of all, when it comes to a trust it is required that it be registered with the master of the High Court of South Africa in order for the trust to actually purchase property. So I would recommend to get in contact with people on this side who will be able to assist you in that process in getting the trust registered with the master of the High Court. And then obviously when it comes to a foreign company wanting to purchase property, it's normally required that this foreign company registers the entity with the regulatory authority and normally it's also required that a representative be appointed in South Africa who represents the company with the transaction going forward. For certain for closing remark, any other final tip for our viewers at home who either they themselves are non-South Africans or of course our friends and family who are non-South Africans who are looking to buy or sell a property this year? So what I would recommend is obviously if you've got any questions you're more than welcome to direct it to our firm. We're more than happy to assist you guys in any of your properly related questions or if you need any assistance. But I think I can't say it enough is to get a good team on your side. A very good conveyancing team who actually does assist you with all your needs, who does bend over backwards or does assist you which whatever it might be, even if the Tony firm cannot assist you with certain tax related queries that they do partner with somebody who can for example assist you with it. So basically having a team, an overall team that can look after your needs. And I think that's such an important note to leave it at. Want to make sure that you surround yourself with the right team who emphasises all the time right here on the show regardless of whether you're a first time buyer or of course a property investor having that power team is so crucial. Well, Arne, that's where we're going to leave it this evening. Thank you so much for joining us on the show. Thank you very much for having me. And that is Arne now who is an attorney and covencer at Hamid Paul attorneys wrapping up the Monday edition of the private property podcast with myself Uzama Donwar, Oumalo. Well, it's been an interesting and certainly an amazing evening to be with you this evening. Before we sign out, I actually want to give a shout out to the first time I'm seeing this name in the comment section to Penisha Maggiola. Thank you for tuning in and also commenting down there. Of course, keep the comments coming. Absolutely love hearing from you at home. Well, that's where we're going to leave it this evening. I'll be back on your screens tomorrow evening at 7 p.m. Until then, happy you're staying home and staying safe.