Question posted in the Property Law category relating to Limpopo
Question value: R 300.00
My mother owns a property that is in a Family trust. This is the only asset in the trust. My father died a year ago and so my mom wants to sell the place. She has received an offer of someone wanting to buy the place but with the rent to own option. They are willing to pay a deposit and then the rest over 5 years.
I need to know how will the transfer of this work? Will it even be possible? The buyer mentioned that he will be willing to take over the trust, is it legal to do this? Also what would the tax implication be as well as the transfer costs?
Your assistance would be greatly appreciated
Answer to the Question
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.
The normal way of disposing the asset would be for the Trust to sell the property to the purchaser. The purchaser would pay the purchase price to the trustees, who would then distribute the proceeds to the beneficiaries of the trust.
It is important that the trustees sign the offer to purchase jointly as sellers. If your Mom is only one of the trustees, she will need the other trustees to agree to sell the property and sign the offer to purchase.
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