Where a property is registered in the name of a Close Corporation or Company, cognisance must be taken when selling the property, that such entity is still registered at the offices of the Companies and Intellectual Property Commission (CIPC).
The CIPC usually deregisters a Close Corporation or Company in the event of failure to submit annual returns at CIPC.
A deregistered Close Corporation or Company can be reinstated, but be aware, as the process of reinstatement can be a lengthy one which can cause delays in the transfer of the property of up to 3-4 months.
The transfer of a property registered in the name of a CC or PTY cannot proceed if the entity is deregistered.
Sellers and estate agents therefore need to be aware and obtain confirmation on the status of the entity selling the property as soon as possible, to prevent any unnecessary delays.
Contact your Attorney/Conveyancer beforehand to assist with the reinstatement of the deregistered entity.
Wietz Viljoen, WVA INC.
This article is for general information purposes and is aimed at advising the public. It should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your legal adviser for specific and detailed advice.