Advice and Opinion

Avoid Delays When Selling Property Held In A Deregistered Entity

A deregistered close corporation or company can be reinstated in cases where the deregistration resulted from the failure to file annual returns. But beware acquiescence in this knowledge, as the process to re-register is lengthy and can generally postpone a transfer/bond instruction anywhere between 7 to 14 weeks!

This is relevant to all role players in a transaction, financiers too, as the transfer and bond process cannot proceed if the entity is deregistered. It is therefore good practice to obtain confirmation on the status of the entity selling the property as soon as possible. In the event that it is deregistered, appoint your conveyancers upfront to commence the re-registration process. You will thereby avoid some of the delays necessarily occasioned by the restoration of the selling entity.

For more information about this, or other legal advice, please contact STBB

Source: STBB “Thought Of The Week”

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