The rental housing act a little known act with huge consequences.
Written by Smith Tabata Buchanan Boyes
The Rental Housing Act 50 of 1999 (“the Act”) came into effect on 1 August 2000. The aims of the Act are to regulate the relationship between tenants and landlords by laying down general requirements relating to leases, making provision for the establishment of Rental Housing Tribunals in each province, and establishing principles to govern conflict resolution in the rental…
In February of 2011 the City of Cape Town municipality passed a new water by-law which requires that, with effect from 18 February 2011 onwards, all sellers of properties within its jurisdiction must furnish a Plumbing Certificate to the municipality before transfer. In order to facilitate future compliance with this requirement on the side of the Purchaser, sale agreements usually…
In the recent judgment of Riverspray Lifestyle Estate (Pty) Ltd v Auby, the Court held that the agreement of sale between the parties was void because the bond was not obtained within the period stipulated in the agreement. However, of specific interest was the reminder that where parties to an agreement include a provision that the seller may extend the…
When you register a bond over property and the Title Deed has a condition prohibiting alienation of the property without the written consent of the relevant Homeowners Association, a document containing consent to register the bond and waiving the Title Deed condition, must be obtained from the Homeowners Association and lodged at the Deeds Office. Should this consent not be…
No, never! Only one of the two taxes will be payable in a transaction. VAT takes preference over transfer duty. The VAT payable is taken from the seller’s perspective. If the seller is registered for VAT and the property forms part of that seller’s (vendor’s) taxable supply, then VAT is payable and not transfer duty. However, if the seller is not…
A trust is a legal entity with its own distinct identity. It has the contractual capacity to acquire, hold and dispose of property and other such assets for the benefit of its nominated beneficiaries. All trusts are governed and administered in terms of the Trust Property Control Act, and formed and governed in terms of a trust deed, a written…
The revenue raised by the Fiscus from Transfer Duty Paid is a reflection of the well-being of the residential property market. This is the case because transfer duty is gathered by conveyancers (on behalf of the Receiver of Revenue) when existing houses are bought and sold (new houses are subject to VAT). To assist middle-class people to purchase a home,…
These data include both voluntary and compulsory liquidations of construction companies during the period 1962 to 2011. The accompanying graph has shaded areas that represent the upswing phases in the overall business cycle. Observe that, in most cases, the numbers of liquidations drop during growth periods and rise during economic recessions. However, as liquidations can take a while to be…
The easiest way to determine the boundaries between properties is to consult the official town planning diagrams kept by the local authority in control of the area. In the event of a dispute over the dividing line between two properties, the first point of reference would be the official property plans (diagrams). One can refer to the title deeds of…
Consumers have a right to expect fair and responsible marketing from estate agents in relation to its services.
Written by Karien Hunter
1. WHAT IS 'MARKETING'? The Chartered Institute of Marketing defines marketing as "the management process responsible for identifying, anticipating and satisfying customer requirements profitably".Sellers and buyers alike are 'consumers' of estate agency services. 2. WHO IS AN ESTATE AGENT'S TARGET MARKET IN RESPECT OF THE MARKETING AND ADVERTISING OF ITS SERVICES? The target market of the services of estate agents…
Children owning land?
Written by Smith Tabata Buchanan Boyes
Children owning land? If land is donated or bequethed to children born or to be born of any person or from any marriage, or is acquired on behalf of such children, transfer of the land can be effected on behalf of such children. In such a case, the land may be registered in the name of a person to hold…
Can a sectional title owner act against the managing agent. What can a registered owner of a unit in a sectional title scheme do, should he be of the opinion that the scheme is mismanaged or that the Body Corporate has suffered damages but failed to do anything about it? In terms of Section 41 of the Sectional Titles Act,…
VAT Relief coming for developers who rent out unsold property
Written by Smith Tabata Buchanan Boyes
VAT Relief coming for developers who rent out unsold property Due to current harsh economic circumstances, many developers are struggling to sell the residential units in their developments. To rent these out is an option in order to generate funds, but VAT legislation considers this a change in use of the property, thereby triggering VAT liability in the hands of…
CPA Lease agreements- when may they exceed 24 Month? In terms of the Consumer Protection Act, a lease agreement between a supplier and a consumer (as defined in that Act) may not exceed a period of 24 months. However, the following exceptions apply: where both parties are juristic persons; where the landlord is able to prove that the property being…