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Articles for
Foreigners
Foreigners rights to own
property in South Africa South African Law does not prohibit a foreigner from purchasing immovable property in the Republic of South Africa. Foreigners are furthermore permitted to sell the property at any time and repatriate the original capital expended plus their profit at such time of their choosing. In as much as South African residents [natural persons or legal entities whose normal place of residence, domicile or registration is within the Republic of South Africa] are subject to certain exchange controls, foreigners are required at the time of wishing to repatriate their funds, to establish that the funds initially utilized for purchasing the property were imported into the Republic at the time of purchase from foreign sources [the purpose being to ensure that no South African resident/citizen is trying to expatriate funds]. This is best achieved by opening a special "non-resident" bank account with a South African commercial institution and ensuring that all funds expended for purposes of the property investment, travel through that account. The opening of this account is however not a prerequisite to the purchase of the property. In such circumstances the funds would be remitted directly to the conveyancing attorneys appointed to attend to the registration of the transfer of ownership of the property purchased who will, if requested, cause the title deed issued to the foreign investor to be endorsed by the attorneys' own bankers, and thereby facilitate the repatriation of the funds when required. This "endorsement" will serve as proof that the purchase price of the property was paid with imported funds. Foreigners are furthermore permitted to borrow funds from a South African financial institution and permit the registration of a mortgage over the property purchased as due security for such loan. The South African laws however restrict the capacity of foreigners to procure such a loan to a sum amounting to a maximum of 50% of the proposed purchase price of the property.
Caution: While every effort has been made to ensure that the information contained in this article is correct, Miltons Inc. will not be liable for any loss suffered by any person due to any error in the article
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