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

Author

Kruger Attorneys & Conveyancers Inc

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)

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