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Phone us on 0860 00 66 22

Phone us on 0860 00 66 22

Can a house be gifted to a family member?

Yes, although you need to take into account the additional costs. SARS treats donations and gifts differently to inheritance, but there are legal and cost considerations involved.

If the property is donated to the child or family member, donations tax of 20% is payable by the parent or donor to SARS on the value of the property (every person is entitled to an annual exemption of R100,000 in respect of donations tax). The child/family member will also be liable for transfer duty on the value of the property if it is above R1,000,000.

If there is a bond over the property, the outstanding balance of the bond would have to be cancelled. The recipient of the property may be required to obtain a bond in his or her name in respect of the property before the transfer will be permitted. Attorney’s fees would be payable in respect of the bond cancellation, bond registration and the transfer of the property according to prescribed rates.

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