In my years as an estate agent, one recurring request I often receive is for old documents — sales agreements, building plans, or transfer records from properties sold many years ago. Understandably, homeowners misplace this over time. However, what many people don't realise is that as estate agents, we are legally required to retain such documents for only five years. After that, the trail often goes cold — and so does our ability to help.
This pattern has taught me something important: the onus of keeping property-related paperwork lies squarely with the homeowner.
Capital Gains Tax (CGT) – A Paper Trail Matters
When it comes time to sell, capital gains tax can take a significant bite out of your profit — unless you have the proper paperwork to support your claim for allowable deductions.
The South African Revenue Service (SARS) allows you to deduct certain costs from your capital gain, including:
• The original purchase price
• Transfer costs
• Professional fees
• Documented improvements to the property
• Commissions and advertising costs
• The final account from the conveyancer
But if you can't prove these expenses, you can't deduct them — and that could mean paying more tax than necessary.
What You Should Keep (And For How Long)
Even though SARS currently requires supporting documents to be kept for five years after submission of your return, I strongly recommend keeping all key property documents indefinitely, or at least as long as you own the property and for several years after you've sold it.
Your property file should include:
• Sale and purchase agreements
• Invoices for renovations and improvements
• Building plans and approvals
• Rates clearance certificates
• Final accounts from the transferring attorney
• Municipal valuation and rates records
• Estate agent commission invoices
Your Property, Your Responsibility
Think of your home as a long-term investment, and your paperwork as the proof of that investment's history. Storing your records safely (and digitally, where possible) may save you time, money, and stress down the line, particularly when SARS comes knocking.
As estate agents, we are here to assist and guide you during and shortly after a sale. But when it comes to long-term recordkeeping, you are your own best resource.