Immovable Property - Deceased Estates
Category Advice
Article Provided by Leanne Jooste, B Law Inc. Attorneys
An Executor of an estate is a person or institution appointed by a Court who is responsible for carrying out the terms of a Will and overseeing the administration of an estate.
The process where immovable property in a deceased estate is being sold to a third party:
Reporting
The estate of the deceased has to be reported to the Master of the High Court within 14 days of the date of death by submitting a death certificate and other related documents to the Master.
The Master will then appoint an Executor to administer the estate of the deceased by issuing letters of executorship/authority as per the Last Will and Testament or alternatively in accordance with whoever the family nominates.
Advertising for creditors
A notice to creditors and debtors will be published in a local newspaper and the Government Gazette requesting that they file their claims with the Executor within 30 days of the advertisement's publication.
Lodging the 42(2) application with the Master
The transfer documents will be signed by the Executor as well as by the purchaser so that the transaction can be lodged in the Deeds Office, to be registered in the name of the purchaser.
One of the documents to be signed by the Executor is a Power of Attorney. The Master of the High Court is then requested to consent to the sale of immovable property by affixing his stamp on the signed Power of Attorney.
As soon as we have this document in our possession, we can lodge the documents in the Deeds Office to effect the transfer from the deceased estate to the purchaser.
Preparing the liquidation and distribution (L&D) account
After the 30-day advertising period has expired, the L&D Account will be lodged at the Master's office
- listing the assets in the estate as well as their value;
- detailing all debts owed by the estate; and
- detailing the heirs and what each heir is entitled to.
The Master may then raise certain queries and/or request additional information relating to the L&D. Once all the preliminary requirements have been adhered to, the Master will approve the L&D account. All the assets and liabilities will have to be determined at this stage.
Advertising the L&D account
As soon as the master approves the L&D account, another notice is published in a local newspaper and the Government Gazette notifying all interested parties that the estate's account will be available for inspection for a period of 21 days at the offices of the Master and the relevant Magistrate's Court. During that period of time, any interested party can inspect the L&D account and lodge objections thereto, if any.
SARS
SARS would need to give us a final clearance certificate, certifying that no funds are due to them from the estate or vice versa. We can only distribute the funds as per the L&D account once we receive this clearance certificate.
Distribution of the Estate
If no objections have been lodged, then the proceeds from the sale of the immovable property along with any other available funds will be paid to the heirs.
Closing of file
The Master will authorize that the estate file be closed as soon as we have transferred the immovable property and have sent proof thereof to the Master.
De Lucia Group has been servicing the property industry for over 45 years. Contact us to ensure you get the best advice for all your property-related queries. Michael De Lucia - michaeldl@delucia.co.za
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The information contained herein is not intended to constitute advice and shall only be relied upon by you at your own risk. De Lucia Group does not guarantee the accuracy or completeness of any information posted in this newsletter or otherwise. Any information relied upon by you should be independently verified for accuracy. De Lucia Group reserves the right to change the content distributed or published without prior notice.
Author: De Lucia Group
