AA - 2021

# RULES FOR 90 DAY NOTICE PERIOD – July 2021

The law states that any person wishing to sell their home needs to give their bank or bond originator written notice of their intent to cancel a bond. The notice period may differ from bank to bank but as a general rule your bank will require 90 days’ notice…

15 common mistakes made by first-time property buyers – 24 August 2021

Navigating the property industry as a first-time home buyer can be nerve-wracking and overwhelming, and the thought of making a mistake with such a large investment can be enormously stressful. In this article, we unpack the most common mistakes made by first-time property buyers and provide advice on how to avoid them…

4 ways to sweeten a commercial property deal – 22 September 2021

Selling a commercial property can be a challenge in difficult economic times, particularly in the current environment where many companies have left the office to work from home. But there are more ways than simply lowering the price to entice a suitable buyer…

5 THINGS TO CONSIDER WHEN PURCHASING AN OLDER HOME – 27 September 2021

To some, buying a ‘fixer-upper’ seems like a dream proposition and for others, it is the only option that their budgets allow for. However, even though older homes often have great character features that most new homes do not, they can also be the stuff of nightmares if buyers are not careful…

6 factors hanging in the balance for property in 2021 – 25 January 2021

Having started the year in technical recession, only to be hit by a pandemic, few would have predicted that 2020 would turn into a successful year for property. Thanks to an unexpected wave of buyers triggered by low interest rates, motivated lenders, and excellent value on the market, however, South African property has emerged from 2020’s challenges with its head held high…

A Testator’s Intention: Is it enough for a valid Will? – 7 September 2021

The Wills Act sets out clear requirements for the drafting of a valid Will, including that it must have a signature or mark of the testator and must be witnessed. However, what happens if the wishes of the deceased are seemingly clear but the document does not otherwise meet the requirements of a valid Will?…

A Testator’s Intention: Is it enough for a valid Will? – 7 September 2021

The Wills Act sets out clear requirements for the drafting of a valid Will, including that it must have a signature or mark of the testator and must be witnessed. However, what happens if the wishes of the deceased are seemingly clear but the document does not otherwise meet the requirements of a valid Will?…

Are one-year lease agreements a thing of the past? – 3 September 2021

Deciding which rental agreement is best for the income you want to earn on your property can be challenging for landlords. As with any successful business, your journey as a landlord should begin with a viable business plan of which your rental contract term is an essential part…

Blow for activists in River Club development – 1 March 2021

On 22 February it was announced that Western Cape minister for environmental affairs and development planning (DEADPA) Anton Bredell had decided to dismiss appeals lodged against the environmental authorisation (EA) issued by his department in August 2020 for a proposed R4.5bn development in Observatory…

Can real estate contribute towards rebuilding South Africa’s crippled economy? – 16 February 2021

Despite President Ramaphosa’s optimistic analogies of fynbos re-emerging after fire, 2021’s State of the Nation Address made it clear that South Africa has a long, and largely undefined, road to recovery ahead. While defeating the coronavirus pandemic and state corruption featured highly, economic recovery took centre stage. The good news is this is one area in which help may be at hand from an often overlooked economic contributor: property…

CAPE TOWN BOUTIQUE HOTEL TO GO UNDER THE HAMMER – 10 February 2021

The scheduled online auction of 40 Burg Street… a landmark heritage building in the centre of Cape Town, comes at a time when the city’s once-thriving traditional business hub faces a potential identity crisis.
This online auction which will close at 14:00pm (South African time) on Wednesday, the 17th of March 2021…

Cape Town Deeds Office – 15 July 2021

During this time we are experiencing extreme delays at the Deeds Office due to the adjusted Level 4 restrictions and the Deeds Office now working with one third the number of employees…

COASTAL HOUSE PRICE INFLATION CONTINUES TO OUTPERFORM – 19 February 2021

The appeal of KwaZulu-Natal’s North Coast is increasing exponentially and home buyers – including those from Gauteng – are looking to make this scenic region their home, edging further northwards, particularly with new schools and commercial developments in the pipeline for these areas…

CONTAINER HOMES IN SOUTH AFRICA: HOW TO GAIN COUNCIL APPROVAL – 31 March 2021

The debate on container homes has gone back and forth for years. At face value, container homes are an obvious solution to addressing the affordable housing shortage and while the concept seems quite simple, there is still a large degree of uncertainty surrounding container homes with South Africans cautious to adopt the alternative building method head on…

Environmental duty of care: realities for the real estate sector – 23 September 2021

Operators in the real estate sector routinely deal with a slew of challenges, relating but not limited to construction defects or delays, injuries to tenants and liability claims due to property damage. Landlords, landowners, and property managers, however, typically overlook their environmental duty of care (DoC) obligations in this respect, which attracts liability risks arising from environmental pollution or non-compliance events at their owned and or managed properties…

Expatriates and South African tax laws – 4 February 2021

Many hundreds, if not thousands of South Africans depart annually in search of greener fields abroad. Most of these expats retain their South African citizenship and live undisturbed with a work VISA issued by the foreign country…

Fiduciary Rights and immovable property: What you need to know – 31 August 2021

For many people, drafting their Will is often a somewhat overwhelming experience. It can even become daunting where various challenges must be addressed. Imagine, for example, that you have married for a second time and there are children from one or both marriages and the relationship amongst the families is not especially amicable…

HELPING YOUR CHILDREN ONTO THE PROPERTY LADDER – 1 March 2021

Getting onto the property ladder is one of the most important financial investments for younger generations. But, with the average age of South African first-time buyers around thirty-six, young adults may be struggling to raise funds for a deposit for their first home or, they may be nervous about making such a big financial commitment…

House showing checklist – September 2021

Whether you are looking to sell or make your home available for rent, you have decided to start this process. However, just because you have made up your mind does not mean that your home is ready to welcome potential tenants and buyers…

How to buy an affordable home in the Western Cape – 25 September 2021

The Finance Linked Individual Subsidy (FLISP) is an excellent option to assist first-time home buyers within the affordable housing market to become property owners.
This subsidy is currently used to cover the difference between the selling price and mortgage loan and can also be used to cover property and bond registration costs…

How to replace a lost or destroyed title deed… – 25 January 2021

A title deed is a document that serves as proof of legal ownership over a property, and is important for the transfer of property. Regulation 68 of the Deeds Registries Act 47 of 1937 sets out the process that needs to be followed when one has lost or destroyed a title deed or mortgage bond…

Is it better to buy or build or plot and plan in South Africa? – 22 August 2021

Trying to decide whether to buy an existing home or to build is tough. An existing home will probably come with a landscaped garden, services installed, and all fitting decisions already made. If the Deeds Office does its thing, the transfer should be a relatively quick process from the moment your offer to purchase is accepted. But there are benefits in other approaches too…

Is Tax Avoidance legal? – 13 July 2021

There is a general misconception between the terms “tax avoidance” on the one hand and “tax evasion” on the other. These terms can be confusingly similar but there is an important distinction between these tax terms that can have the result of the taxpayer being either on right side of the law, or the wrong side of the law…

Meandering along the Sea Point Promenade – 22 May 2021

The Simon van der Stel Foundation recently expressed concern that Heritage Western Cape (HWC), the local successor to the National Monuments Council, is allowing the history of old Bantry Bay to be destroyed by permitting the demolition of structures of heritage importance…

NEIGHBOURHOOD MALLS WILL REMAIN RESILIENT – 20 January 2021

Retail is a function of the South African economy that is struggling but there are defensive segments in the retail sector that are responding valiantly. With an urgent and essential response to the pandemic, we are now seeing the more gradual change – the consequence of constantly morphing property dynamics…

New Board for property industry announced – 26 November 2021

Cabinet on Wednesday approved and Minister Mmamoloko Tryphosa Kubayi-Ngubane, Minister of Human Settlements, announced the new Board of the Property Practitioners Regulatory Authority “PPRA”, which is to replace the Estate Agency Affairs Board (EAAB) as soon as the PPRA Regulations are finalised. The new Act repeals the Estate Agency Affairs Act, No 112 of 1976 (“EAA Act”) in its entirety…

Now is the time to buy – but don’t leap before looking – 24 March 2021

With interest rates at record-breaking lows, property prices subdued but poised for a future upswing, and plenty of stock on the market to choose from, there has seldom been a better time to buy a home. Despite the enviable prospects, however, buyers should be cautious not to throw caution to the wind…

ONE THIBAULT – CAPE TOWN’S REIMAGINED ICON – 17 May 2021

Convenience, comfort, affordability and planet sensitivity are all vital aspects to consider when choosing where to live. Multi-use buildings are fast becoming the norm – offering residents any number of convenient amenities within their own building…

Owning assets in a foreign country – 3 July 2021

More and more South Africans use their annual discretionary foreign investment allowances to invest offshore and to acquire assets in foreign countries. The question to be asked then , is whether one needs to have a separate Will for those assets…

Phil Spencer advises agents: Save A Sale, Restore A Reputation! – 21 June 2021

[Well know Presenter of the Popular – UK TV Programme:  Location, Location, Location]
this article was written for the UK Market.

There may well have been times in recent weeks when any agent would have been forgiven for wanting a break – the workload has been exhausting, as it has been for everyone in the property transaction business…

Predictable outcome as interest rate holds steady – 25 March 2021

The Monetary Policy Committee (MPC) has again announced that interest rates will remain stable, keeping the repo rate at 3.5% and the prime lending rate at 7%. This was a predictable outcome and, unless things take an unexcepted turn, interest rates are likely to remain steady for the remainder of the year…

Prepare for Impact! – 18 May 2021

Hearing what is happening with the US economy post the pandemic, leaves us feeling a little less than comfortable. It is often said that when the United States sneezes, the rest of the world catches a cold. Best you start stocking up on tissues…

PRIVATE POWER PLANTS ARE NOW POSSIBLE FOR ESTATES AND COMPLEXES – 26 August 2021

Homeowners in community housing schemes such as sectional title complexes and gated estates can celebrate the newly gazetted change to the Electricity Generation Act regulations which now allows private individuals and businesses to generate up to 100MW of electricity for their own use without having to obtain a license from the National Electricity Regulator…

Property is a tangible asset you can count on – 19 July 2021

Investing in property is usually done to earn a return through rental. One may even want to sell the property in the future, receiving a significant return, considering that land and buildings do not depreciate in the same way that other assets do…

Pros and cons of buying a house for cash – 14 September 2021

Even if you have enough cash in the bank to be able to buy your next home outright, you should probably think twice before you do. Using a home loan to finance the purchase is often a better way to go, especially if buyers apply through a reputable mortgage originator that will make sure they are offered the best possible interest rate…

Real estate under the spotlight: Is sustainability becoming mainstream? – 3 March 2021

Parliament’s portfolio committee on Agriculture, Land Reform and Rural Development has called for written comment on the Sectional Titles Amendment Bill.
The bill introduces a number of additional regulations which largely relate to the management and development of schemes including extensions and common property – with tenants and trustees less likely to be impacted…

RENOVATIONS AND ALTERNATIONS TO YOUR HOME – 16 February 2021

What is required after your building plans were approved?
Once your local municipality has approved the building plans and you have completed the renovation, alteration, addition or extension to your home in accordance with such plans in the required timeframe…

RESIDENTIAL BUILDING ACTIVITY EXPECTED TO RECOVER IN 2021 – 24 May 2021

StatsSA’s residential building numbers for 2021’s first quarter showed growth in units completed but growth in plans passed remained negative. A growth rate in building activity is still anticipated this year due to 2020’s low base but this may not necessarily mean a strong 2021 level of building…

Rode Report: Market still on recovery route – 19 August 2021

The listed property market continued its end-of-year recovery in the first quarter of 2021 as shown by the improvement in the share prices of JSE-listed companies, albeit from a low base.

Fundamentally, industrial property is still in the best position compared to the other non-residential property types, which suffer from a large supply overhang. The office market remains the riskiest…

Should bond equity be used for debt? – 3 June 2021

Focusing on paying off debt with the highest interest rate is a very good financial strategy. For this reason, many choose to use the equity in their home loan to pay off other debts with higher interest charges…

South Africa joins other countries in push for a global tax – 5 July 2021

South Africa has joined 130 other countries in calls to introduce a global tax.
In talks held by the Organization for Economic Cooperation and Development (OECD) last week, the countries agreed to a plan to set a minimum corporate tax rate and establish a new regime for sharing the taxes imposed on the profits of multinational firms…

Superhomes in South Africa are selling again, but at a fat discount – 6 March 2021

Between 30% and 50% of the high net-worth individuals (HNWIs) globally are planning to buy at least one additional luxury property within the next 12 months, compared to just 20% a year ago, according to the latest research conducted by Luxury Portfolio International (LPI) and Leading Real Estate Companies of the World (LeadingRE)…

Tenders – Why a written agreement is not a maybe but a must – 26 August 2021

In many instances, perhaps over-eager bidders who are awarded opportunities to work with the government often fall short in their claims when not paid. The practical scenario is that an opportunity arises and the bidder enters a bid or engages in discussions. Seemingly these are successful, and then work starts before the service-level agreement is signed…

THE SIX FACTORS HANGING IN THE BALANCE FOR PROPERTY IN 2021 – 25 January 2021

Few would have predicted that 2020 would turn into a successful year for property considering the technical recession and Covid-19. Thanks to an unexpected wave of buyers, triggered by low interest rates, motivated lenders and excellent value on the market, South African property has emerged in 2021 with its head held high…

THE STATE OF SOUTH AFRICA’S PROPERTY MARKET – 11 October 2021

The property market continued to recover during the third quarter of 2021 according to the latest issue of Rode’s Report on the South African Property Market.
This was indicated by the further increase in listed property prices, boosted by higher global economic growth and better-than-expected company results…

Trading in water rights & agricultural land transactions – 22 November 2021

In the commercial agricultural sector, there existed a longstanding practice in which the holder of water rights who was not utilising the rights, or only using part of the quota, could sell or trade such rights with a third party. However, in a 2018 circular, the Department of Water & Sanitation stated that such transfer of (or ‘trading in’) water rights is prohibited in terms of the National Water Act and should no longer be entertained…

Understanding CPD requirements for estate agents – 22 November 2021

The overall aim of the continuing professional development (CPD) programme is to ensure that experienced estate agency practitioners can consistently maintain their knowledge, practical competencies and skills through participation in a variety of relevant learning activities and interventions…

Understanding the deeds office and registration process – 8 December 2022

Despite common belief, the finish line when buying and/or selling property is not reached when entering into an agreement of sale or even when signing the transfer documents at the conveyancing attorney’s offices. In fact, the finish line is only crossed once the transfer of the property has been processed and registered at the relevant Deeds Office…

Understanding the roles of those nominated in your will – 10 September 2021

Estate planning means making a plan for taking care of your nearest and dearest and dealing with everything you own and owe when you pass away. A will or testament is a legal document where you leave instructions on how you want your family to be taken care of, and who will inherit assets like property, jewellery, cars or investments that you own…

What R1.5m and under buys you in KZN – 1 April 2021

Ballito, North Coast and Queensburgh in KwaZulu-Natal offer buyers spacious homes, a more balanced and relaxed lifestyle, with new apartments selling from R550k and homes from R850k. Experts offer advice on what you can expect to buy within the R1.5m price band in this province…

What R1.5m buys you in Gauteng – 31 March 2021

In 2020, more than 95 800 properties were sold in Gauteng according to Property24 Trends Data, with the average sale price for the province being R910 000. The average sold price for an erf in 2020 was R1 million, while a sectional title unit average sold price was R8250 000 for the same period…

What R1.5m buys you in the Western Cape – 29 March 2021

In 2020, more than 53 000 properties were sold in the Western Cape according to Property24 Trends Data, with the average sale price for the area being R1.25 million. The average sale price per erf for 2020 in the Western Cape is R1.32 million, while Section Scheme Units average sale price for the same period is R1.1 million…

When Bond Clauses Sink Sales – June 2021

A very common suspensive clause in property sale agreements, where the buyer cannot pay the purchase price in cash, is the “bond clause” making the sale subject to the buyer obtaining a “bond approval” from a financial institution (usually a bank)…

When incapacity results in the lapsing of a power of attorney – 8 July 2021

A power of attorney is a formal document where a person (the principal) gives another person (the agent) the ability to act legally on his behalf. It is not a contract but rather an expression of will by the principal. Typically, a power of attorney allows an agent to manage the proprietary and financial affairs of the principal should the principal become unable to do so…

Why is it important to have a Will? – 14 September 2021

Events which shape one’s life such as marriage, the purchase of a property, the birth of a child, the death of a loved one, a divorce or emigration, all lead to a change in personal circumstances which may require the updating of your Will…

Why South Africa’s rental market is shifting – 24 September 2021

South Africa’s housing market has been turned on its head once again with the current spike in the rental market. While the market experienced a surge in homebuyers due to the banks’ low-interest rates and favourable lending criteria, there is now a high demand for rental properties…

Will the door stay open for estate agents in adjusted Level 4? – 28 June 2021

Estate agencies will probably close head offices and allow staff to work from home in the wake of the new adjusted Level 4 announced by President Cyril Ramaphosa tonight.

In Level 4 last year estate agents were unable to work or show property and it is still uncertain if this will be the case in an adjusted Level 4…