Page 10 - Nexia SAB&T Property and Tax Guide 2024

THE FICA CLAUSE
Cash transactions and FICA:
The Financial Intelligence Centre Act (38 of 2001), as amended, provides that Accountable institutions (AI’s), which
include attorneys and estate agents, are required to file a report with the Financial Intelligence Centre in regard to
any cash transactions involving domestic and foreign notes and coins, and travellers cheques above R50 000 or
an aggregate thereof (i.e. smaller amounts that when taken together at the same time amount to over R50 000).
In addition, the transferring attorney and the estate agent are required to request certain documents from both the
seller and the purchaser, in compliance with FICA. If applicable, the bank, and the bank’s attorneys granting the
bond will also require documents, some of which are listed below:
Natural Person
◆ Identity document(s) and Income tax registration number (latest tax return submitted to SARS and VAT
number – where applicable)
◆ Proof: marital status:marriage certificate, antenuptial contract, divorce orders, consent papers
◆ Either a utility bill (water or lights), or a levy account that is addressed to the natural person at his or her
residential address, not older than 3 months
Estate agent
◆ VAT details, income tax details of agency and agent involved in the transaction
Trust
◆ Verification of all authorised Trustees and Beneficiaries (income tax, identity numbers and proof of residential
addresses not older than 3 months)
◆ Letters of authority to act as Trustes and copy of the Trust Deed
◆ Resolution authorising Trustee to act on the Trust’s behalf in the property transaction
◆ Income tax and VAT number (where applicable), of the Trust
◆ For bond registrations, the financial institution may require financial statements and/or personal suretyship
from the Trustees
Company/Close Corporation
◆ Verification of all Directors and shareholders/members (income tax, identity numbers and proof of residential
addresses not older than 3 months)
◆ Memorandum of Incorporation/Founding Statement (and amended where applicable)
◆ CoR 39 Certificate (Certificate of Director amendments)
◆ Resolution authorising Director/Member to act on entity’s behalf in the property transaction
◆ Income tax and VAT number of the company/CC (where applicable)
◆ For bond registrations, the financial institution may require financial statements
and/or personal suretyship from the shareholders/members
Companies and CC’s
◆ For bond regisrations and transfers, a Factual Findings Report of the Auditor/Independent Reviewer/
Accountant, and Certificate For A Transfer for a company/CC/signed by the Directors/members (whichever is
applicable).
AI’s are required to conduct greater and enhanced due diligence when dealing with persons who are “prominent and
influential domestically”, or are “foreign prominent public officials” (or their immediate family members, or known
close associates). These lists are not exhaustive and are intended to give an idea of the required documentation
for FICA compliance.
DEVELOPER’S RIGHT OF EXTENSION
A right of extension, in terms of Section 25 of the Sectional Titles Act (95 of 1986), allows the developer of a
sectional title scheme to reserve a right in its favour, to erect further phases to the development, within a stipulated
period and for its personal account, further buildings or extensions on a specified section of the common property,
and to divide these buildings into sections. This clause should be specifically dealt with in the deed of sale. The
purchaser needs to be advised and made aware as to whether the developer has or does not have a right of
extension in terms of the sale agreement.

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