“declared value” in relation to property means the value of the property as declared in the declaration completed in terms of section fourteen by the person who has acquired the property;

“deeds registry” includes the Mineral and Petroleum Titles Registration Office established by section 2 of the Mining Titles Registration Act, 1967 (Act No. 16 of 1967);

[Definition of “deeds registry” substituted by section 1 of Act 24 of 2011]

“fair value”–

(a)     in relation to property as defined in paragraphs (a) and (c) of the definition of “property”, means the fair market value of that property as at the date of acquisition thereof;

[Para (a) substituted by section 1 of Act 24 of 2011]

(b)     in relation to a share or member’s interest in a company as contemplated in paragraph (d) or (e) of the definition of “property”, means so much of the fair market value as at the date of acquisition of that share or member’s interest, of any property held by that company which constitutes –

(i)      residential property;

(ii)     a share or member’s interest in any company as contemplated in paragraph (d) or (e) of the definition of “property”; or

(iii)    a contingent right in property of a trust as contemplated in paragraph (f) of the definition of “property”,

(without taking into account any lease agreement, any liability in respect of any loan or any right to or an interest in the use of immovable property conferred on the owner of a share in a share block company as contemplated in section 1 of the Share Blocks Control Act, 1980 (Act No. 59 of 1980), in relation to that residential property or any residential property of any company or trust contemplated in subparagraph (ii) or (iii)), as is attributable to that share or member’s interest;

[Paragraph (b) amended by section 1 of Act 45 of 2003 and section 1 of Act 17 of 2009]

(c)     in relation to any contingent right to any property, which constitutes –

(i)      residential property;

(ii)     a share or member’s interest contemplated in paragraph (d) or (e) of the definition of “property”; or

(iii)    a contingent right in property of a trust as contemplated in paragraph (f) of the definition of “property”,

held by a discretionary trust, means the fair market value of that property (without taking into account any lease agreement or any liability in respect of any loan in relation to that residential property or any residential property of any company or trust contemplated in subparagraph (ii) or (iii)), as at the date of acquisition of that contingent right; or

[Paragraph (c) amended by section 1 of Act 17 of 2009]

(d)     in relation to a share in a company as contemplated in paragraph (g) of the definition of “property”, means so much of the fair market value, as at the date of acquisition of that share, of any property held by that company which constitutes property as contemplated in paragraphs (a) and (c) of that definition (without taking into account any lease agreement or any liability in respect of any loan in relation to that residential property) as is attributable to that share:

[Paragraph (d) inserted by section 1 of Act 17 of 2009 and substituted by section 1 of Act 24 of 2011]

 

Provided that –

(a)     the fair market value of any property of a company or a trust which constitutes a contingent right in property of a trust, as contemplated in paragraphs (b)(iii) and (c)(iii) shall be equal to the fair value of that contingent right as determined in terms of paragraph (c) of this definition; and

(b)     where property, has been acquired by the exercise of an option to purchase or a right of pre-emption, the fair value in relation to that property shall be the fair market value thereof as at the date upon which the option or right of pre-emption was acquired by the person who exercised the option or right of pre-emption;

[Definition of “fair value” substituted by section 2 of Act 74 of 2002]

“mining asset” means any building, shaft, excavation, borehole, structure, fixture or other improvement or work used or intended to be used for purposes of mining, or purposes incidental thereto, including the accommodation of mine personnel, but does not include any building or structure on land in a proclaimed township;

[Definition of “mining asset” inserted by section 11 of Act 80 of 1959]

“person” includes the estate of a deceased or insolvent person and any trust;

[Definition of “person” inserted by section 8 of Act 37 of 1996]

“property” means land in the Republic and any fixtures thereon, and includes –

(a)     any real right in land but excluding any right under a mortgage bond or a lease of property other than a lease referred to in paragraph (c);

[Paragraph (a) substituted by section 1 of Act 24 of 2011]

(b)     ……….

[Paragraph (b) deleted by section 1 of Act 24 of 2011]

(c)     any right to minerals (including any right to mine for minerals) and a lease or sub-lease of such a right;

(d)     a share (other than a share contemplated in paragraph (g)) or member’s interest in a residential property company;

[Paragraph (d) substituted by section 1 of Act 17 of 2009]

(e)     a share (other than a share contemplated in paragraph (g)) or member’s interest in a company which is a holding company (as defined in the Close Corporations Act, 1984 (Act 69 of 1984), or as defined in the Companies Act, 2008 (Act 71 of 2008), as the case may be), if that company and all of its subsidiary companies (as defined in the Close Corporations Act, 1984, or Companies Act, 2008), would be a residential property company if all such companies were regarded as a single entity;

[Paragraph (e) added by section 2(1)(b) of Act 74 of 2002 and substituted by section 1(1)(d) of Act 17 of 2009 and by section 1 of Act 16 of 2022]

(f)     a contingent right to any residential property or share or member’s interest, contemplated in paragraph (d) or (e), held by a discretionary trust (other than a special trust as defined in section 1 of the Income Tax Act, 1962 (Act No. 58 of 1962)), the acquisition of which is –

(i)      a consequence of or attendant upon the conclusion of any agreement for consideration with regard to property held by that trust;

(ii)     accompanied by the substitution or variation of that trust’s loan creditors, or by the substitution or addition of any mortgage bond or mortgage bond creditor; or

(iii)    accompanied by the change of any trustee of that trust and;

[Paragraph (f) amended by section 1 of Act 7 of 2010 effective on 1 September 2009]

(g)     a share in a share block company as defined in the Share Blocks Control Act, 1980 (Act No. 59 of 1980);

[Paragraph (g) added by section 1 of Act 17 of 2009]

[Definition of “property” amended by section 1 of Act 5 of 2001 and section 2 of Act 74 of 2002]

“registration officer” means the person who is in charge of a deeds registry;

“Republic” means the territory of the Republic of South Africa and includes the territorial waters, the contiguous zone and the continental shelf referred to respectively in sections 4, 5 and 8 of the Maritime Zones Act, 1994 (Act No. 15 of 1994);

[Definition of “Republic” inserted by section 5 of Act 103 of 1969, deleted by section 2 of Act 87 of 1988 and inserted by section 1 of Act 5 of 2001]

“residential property” means an dwelling-house, holiday home, apartment or similar abode, improved or unimproved land zoned for residential use in the Republic (including any real right thereto), other than –

(a)     an apartment complex, hotel, guesthouse or similar structure consisting of five or more units held by a person which has been used for renting to five or more persons, who are not connected persons, as defined in the Income Tax Act, 1962 (Act No. 58 of 1962), in relation to that person; or

(b)     any “fixed property” of a “vendor” forming part of an “enterprise” all as defined in section 1 of the Value-Added Tax Act, 1991 (Act No. 89 of 1991);

[Definition of “residential property” inserted by section 2 of Act 74 of 2002]

“residential property company” means any company, other than a REIT as defined in section 1 of the Income Tax Act, 1962 (Act No. 58 of 1962), that holds property that constitutes-

[Words preceding paragraph (a) substituted by section 1 of Act 31 of 2013 effective on 12 December 2013]

(a)     residential property; or

(b)     a contingent right contemplated in paragraph (f) of the definition of “property”,

and where the fair value of that property or contingent right comprises more than 50 per cent of the aggregate fair market value of all the assets, as defined in paragraph 1 of the Eighth Schedule to the Income Tax Act, 1962, (other than financial instruments as defined in section 1 of that Act or any coin made mainly from gold or platinum), held by that company on the date of acquisition of an interest in that company;

[Definition of “residential property company” inserted by section 2 of Act 74 of 2002]