Hi there,

My husband and my mother in law, bought a property in 2011, for R1,050,000, however she was only on the bond for the affordability side of things, my husband pays the bond repayments.

In anycase we spoke about me taking over the bond from her, so we would do a substitution bond, however we have been advised that she would need to pay tax, as the property value is now at 1.6mill, the remaining amount on the bond is R990,000 +/- , are you able to advise if she would be taxed, considering it would be a substitution, and if so, for what?

Kind regards

Laura

Hi there,

I see that you haven't made a payment for the question, but I'm going to assist you a little. If you want to ask a follow-up question, please make the required payment.

If your mother-in-law was listed on the title deed as a 50% owner in the property, and you now want to "step into her shoes" and take her place as the 50% owner in the property, then what needs to happen is that she will need to enter into a sale of immovable property agreement in terms whereof she will sell her 50% share to you.

That will give rise to certain taxes ... which I can explain if you would like.

Att. Patrick

Please remember this is a dialog if you have follow-up questions please make the required payment, then use the REPLY button and ask your further question. I would like to continue assisting you, but I need to concentrate on people who make payments for their questions.