|
transferred to the RCI office in the buyers country. The buyer is then ready to utilise the RCI exchange benefits through their local RCI office just as if a timeshare was owned in their own country.
(b) Timeshare South Africa
The legal basis of purchasing Timeshare in South Africa varies and the most popular being the Share Block method in perpetuity. Shares in the timeshare resort transferred to the purchaser in the manner prescribed by South African law. The Estate Agents Affairs Board duly constituted by the South African Government Estate Agents Act 112 of 1976 governs all timeshare.
(c) Investment Protection
The South African timesharing is a well-established, sophisticated and recognised industry with legislation governing the industry recognised as among the best anywhere in the world. There are a number of Government Acts which contain special measures to safeguard a purchasers investment and which are all highlighted in the Estate Agents Act no 112 of 1976 as Qualification; Trust Account; Estate Agents Fidelity Fund; and Offences and Penalties.
(d) Payments
Payments for South African timeshare by overseas investors/purchasers must be in cash or bank guaranteed money order by direct deposit into the Coral Palms trust account, a bank account opened in accordance with the South African Estate Agents Act. Foreigners acquiring immovable property in South Africa must comply with applicable exchange control provisions and all transactions are registered with the Reserve Bank of South Africa.
(e) TISA Registration
TISA (the Timeshare Institute of South Africa) examines the viability of every scheme or project before it is accepted as a member. TISA scrutinises purchase contracts and agreements to ensure that the interests of the buying public are protected and that the scheme complies with all the relevant legislation such as the Timeshare Act, the Shareblock Control Act or the Sectional Title Act. TISA members are obliged to adhere to the TISA code of ethics.
NON-RESIDENTS
(a) Status
Foreigners are referred to as non-residents in South Africa. A non-resident can be a natural peson or a legal entity whose normal place of residence or domicilium falls outside the CMA (Common Monetary Area), which consists of South Africa, Lesotho, Namibia and Swaziland.
(b) Loan
Non-residents can purchase immovable property in South Africa, but they cannot be granted a loan for the full purchase price
(c) Transaction Governing
All property transactions by non-residents have to be routed through the South African Reserve Bank and all requests for foreign purchases of South African property must go through a local bank, from where it is referred to the Reserve Bank.
(d) Borrowing Funds
A non-resident may borrow up to a maximum 50% of the purchase price of the property from South African financial institutions. The remaining 50% of the funds have to be brought into the country be the buyer.
(e) Processing
The Reserve Bank of South Africa normally takes up to two weeks to process an application.
(f) Bond Repayments
If the purchaser has secured a 50% holding bond through a local institution in South Africa, a non-resident account must be opened from which the bond repayments must be made.
(g) Local Account
A non-resident account is opened locally, after which a telegraphic transfer can be made into the account. Cash may also be paid into the account, but needs to be converted into South African Rands. Telegraphic funds will, however, enjoy a better exchange rate than a cash conversion.
(h) Fund Repatriation
Funds brought into the country by a non-resident may be repatriated at any time. Capital gains on immovable property however, will be taxed.
EXCHANGE CONTROL TERRITORY
(a) Rulings
Different exchange control rulings apply to the transactions of residents of the Common Monetary Area (CMA) and non-residents thereof. The CMA comprises of the Republic of South Africa, Lesotho, Namibia and Swaziland. There are no trade and exchange restrictions between the members of the CMA and they form a single exchange control territory.
(b) Status
Investments and transfers of funds from the RSA to other CMA countries do not require the approval of Exchange Control but may require that of the host country. Settlements by residents of the RSA with the non-resident area may be made to and from a non-resident account and in any foreign currency. |
|
ersons residing outside of this area may purchase property in Southern Africa. In the case of outright purchase of a property full title is afforded to the purchaser once the applicable transaction and necessary documentation has been submitted and approved. The laws protecting the buyer and seller are internationally sound and offer potential foreign purchasers both long and short-term guarantees. The legal issues regarding the various purchase options are as
follows:
