Is it possible to receive payment of the purchase price offshore, when selling a South African Property?
It occasionally happens that a seller and a purchaser of a South African property would like to pay the Purchase Price offshore; instead of bringing the money into South Africa to pay the seller.
Sections 6 and 7 of the Exchange Control Regulations provide that the purchase price must be paid to and received in South Africa. The proceeds of the sale have to be received in the Republic within 30 days after becoming so entitled.
Furthermore, should the non-resident wish to sell the property, later on in the future, he will not be able to repatriate the selling price abroad, because he would have no proof of him initially having brought the money into South Africa in the first place.
Nonetheless, a detailed application to the Financial Surveillance Department, setting out the reasons for not being paid in South Africa, can be submitted.
Denoon Sampson is the Director at Denoon Sampson Ndlovu Inc, currently ranked the ‘number 1’ top performing conveyancer by First National Bank Limited. He has 30 years of experience as a conveyancer, specialising in the full spectrum of property-related law and is often called upon to give talks or contribute content on related matters.