What should I know about when a trust enters into a sales agreement?

Author
Kruger Attorneys & Conveyancers Inc
Kruger Attorneys & Conveyancers Inc is a specialised conveyancing practice, providing incomparable property law services through practical wisdom and trusted advice.

The Trustees of a Trust need to have Letters of Authority issued by the Master of the High Court prior to the sale agreement being entered into. The Trustees cannot enter into a sale agreement without the letters of authority being issued.

The Trustees will also have to sign a Resolution prior to entering into an Offer To Purchase (OTP) to agree to the sale/purchase of the property or all Trustees must sign the OTP.

Another aspect to consider is FICA requirements for a Trust. FICA will need to be collected for the Donor, the Trustees and the Beneficiaries.

(Article by Damian Sequeira from Kruger Attorneys & Conveyancers Inc)