Is your electric fence legal?
In terms of the Electrical Machinery Regulations of 2011, issued under the Occupational Health and Safety Act 85 of 1993, every lessor or user of an electric fence system must be in possession of an electric fence system compliance certificate. This additional compliance certificate will therefore be a requirement where immovable property is being transferred. more...
VAT implications for the transfer of leased commercial property to an only tenant
Often an only tenant enters into an agreement for the purchase of commercial property from its present owner. In terms of the Value-Added Tax Act (‘VAT Act’) such a transaction would constitute a ‘supply’ and thus tax considerations would have to be taken into account. As a point of departure, zero-rated supplies are taxable supplies more...
The difference between a consolidation and a notarial tie-agreement with regards to immovable property
Owners of immovable property will sometimes find it necessary or be compelled to consolidate or notarially tie their property. Understanding the difference between the two procedures and when it becomes applicable is therefore necessary. Consolidation A consolidation is done by way of an application, by the owner/s of the properties, for the issue of a more...
Are Disclaimers and Exclusionary Clauses still valid for Property Owners?
A recent decision by the High Court in Naidoo v Birchwood Hotel (2010/47765) [2012] ZAGPJHC 59 (3 April 2012) has rendered disclaimers and exclusion clauses less reliable protection than they previously gave to property owners. It is important that they remain in place, visible and clear but it is vital to limit risk by regularly more...
Expropriation and Compensation
Late in 2011 the Constitutional Court made a decision allowing the expropriation of property prior to compensation being determined. As a result it is therefore now possible for a homeowner to lose their property before knowing what they will receive in compensation. With regard to expropriation, the decision placed public interest above private ownership. The more...
The definition of boundaries to sectional title sections and exclusive use areas
Welcome amendments to the sectional title act and regulations. When the Sectional Titles Act 95 of 1986 (“the Act”) amendments came into effect on 7 December 2010, one welcome change to the Act related to how the boundaries of a section are defined that provided clarity for sectional title managers and sectional title owners. Although more...
Separate enjoyment and control
Trusts are flexible and there is a relative lack of formality in their creation and operation. Trustees and Beneficiaries should be aware that the leeway provided by the wording of the trust deed does not absolve them of the need for accountable administration. In a recent judgement, Land and Agricultural Bank of South Africa v more...
The right to terminate a lease in order to increase rental
The Supreme Court of Appeal considered the matter of Maphango v Aengus Lifestyle Properties (Pty) Ltd (2011) 3 All SA 535 recently. The Respondent was the owner of the premises and the Appellants were the tenants. The Respondent gave the Appellants written notice of the termination of their leases and further advised that should they more...
On the lighter side … a quick guide to estate agent speak
What they say What they mean Renovated The lounge has been painted Just waiting for your touch As far as the interior is concerned, this is a no-hoper Centrally situated/convenient The main road and the station are 5 metres from your bedroom Character-filled Tatty and there's no en-suite bathroom or off-street parking Big family bathroom more...
How the Consumer Protection Act affects estate agents
An estate agent supplies goods and services in the ordinary course of his or her business to the sellers and purchasers of immovable property. In this role, the estate agent falls squarely within the definition of a supplier as defined by the Consumer Protection Act (“the CPA”). The CPA applies to many transactions in which more...
The transfer process explained
Download the guide to "How the transfer process works"
Does the Consumer Protection Act (“CPA”) apply when I am selling my home?
The short answer is that the CPA will only apply if the seller is acting in the course and scope of her business, such as a property developer. (The CPA specifically defines “transaction” as meaning when a person acts in the ordinary course of business.) When you are a once off seller then you will more...