Alteration to contracts a crime



Property buyers have welcomed the reduction in transfer duty that now applies to properties acquired on or after March 1. However, Mr Bill Rawson, national president of the Institute of Estate Agents, says some buyers who signed their deeds of sale before that date are reportedly trying to alter their contracts, or replace them with new ones purporting to show the properties were acquired after that date so they only pay transfer duty at the new lower rate. Such alterations are illegal and estate agents, Rawson warns, should not become involved in any falsification. Tax evasion is a serious crime," he says, "and carries penalties far in excess of the saving in transfer duty. We must also bear in mind that the government has set up a Financial Intelligence Centre to deal with financial crimes, and that estate agents are obliged by law to inform the Centre if they are aware or even suspect tax evasion. An estate agent's legal duty is now clear. If a client wants to change or replace a contract merely to change the date for transfer duty purposes, the agent should refuse and report the client to the Financial Intelligence Centre on suspicion of tax evasion. An estate agent who fails to carry out his or her duty risks disciplinary action by the Estate Agency Affairs Board and, potentially, prosecution under the Financial Intelligence Centre Act." Article: 12 March 2003 Rodney Hayter The Property Professional On-line Edition 62 email: hayter@icon.co.za