Property Bargain Finder is constantly looking for ways to add even more value to the Property Bargain Finder investors and to provide cutting edge services and products for our Property Bargain Finder Investor’s Club members.
In line with this, we are delighted to announce a new Property Bargain Finder service for our investors and Club Members: usufruct transfers.
Zita Hage, a qualified attorney, who specialises in usufruct conveyancing, is able to offer Property Bargain Finder investors and Club Members this essential service.
What is a ‘usufruct’?
Although the name sounds strange because it is a Latin term, the word ‘usufruct’ simply means ‘the use of the fruits’. Applied to property ownership, this simply refers to the right to use of the property for personal use or to receive the benefit of any rent from the property, as the case may be.
In practical terms, the rights to use the property can be separated from the title (ownership) of the property and this clever legal trick holds a solution for property owners wanting to transfer property registered in their names to their trust at a cost effective rate.
How this can help Property Bargain Finder investors and Club Members
Some of you may have faced the problem of how to deal with current properties already owned and registered in your personal names. You may want to transfer the ownership of the property to a trust, but not want to pay the full transfer fees all over again which can run in to tens of thousands of Rands.
This is where a usufruct could be useful. The effect of a usufruct is that the usage portion of the rights of ownership (the usufructuary rights) is separated from the title (dominium) to the property. The owner would therefore keep the usuage rights in his name (the usufruct) and transfer the title (ownership) to the property to the trust. As the ownership of a property which is encumbered by a usufruct is not worth much, the price tag for such ownership is negligible and it is this amount that transfer duty would be payable on.
However, since the ownership of the property is now held in the trust, investors enjoy the same asset protection they would have had if the full property rights and ownership were held by the trust as well as the estate planning benefits of having the capital growth accumulating in the trust rather than in their personal names.
Contact Vania on vania@propertybargainfinder.com - 0794855355 for more info.
Warm regards,
The Property Bargain Finder team
Web: www.propertybargainfinder.co.za
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