Deregistered companies selling or buying properties: what is the legal position?

Posted on: March 11th, 2016 by STBBSiteOwner

In terms of the current Companies Act, companies and close corporations can be deregistered for administrative reasons.

The Act does make provision for the reinstatement of entities in certain circumstances, including instances where the deregistration followed on non-submission of annual returns. This relief is, however, not without a sting in its tail as these applications are lengthy; in the case of entities owning immovable property, it takes some months! Any transaction that the entity seeks to register in the deeds office is necessarily delayed as a result.

However, an important consequence of deregistration is that the entity ceases to exist as a legal person and therefore cannot enter into transactions, such as selling or buying immovable property or registering a mortgage bond. In this video (insert link here) we briefly explain the position and give advice to potential purchaser and sellers holding property in a deregistered entity.

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