General Once a property has been sold, the seller’s Conveyancer is appointed to attend to the transfer of property. One of the functions of a Conveyancer is to secure the purchase price of that property. To secure the purchase price, the Conveyancer must either have received payment of the purchase price in cash and have the actual funds in their trust account, or the Conveyancer must have...
Because home loans and mortgage bonds play such an important part in your work as a Property Practitioner, you need to understand what they are and how they work. A mortgage bond is a LEGAL DOCUMENT in which: The LENDER (e.g., the financial institution) agrees to lend the BORROWER (your purchaser) money to buy the property, and The BORROWER pledges the property as security for the loan. Should...
Sellers often have to accept ‘subject to’ offers on a property. What does this mean for the buyer and seller? In any sales agreement, there are some clauses that can cause a certain amount of confusion. In terms of property sales, a common clause included in many agreements is that the sale of the property is subject to the sale of another property. This is a suspensive condition, meaning that the...
Section 4.1.1 of the Code of Conduct + CPA = Questions about the appropriateness of the “Voetstoots” clause = the “birth” of the “Property Condition Report” Introduction Section 4.1.1 of the Property Practitioners Code of Conduct provides that a Property Practitioner who has a mandate to sell a property shall: “convey to a purchaser …. all facts concerning such property as are,...
The Basics of Determining a Fixture A common term of any property sale contract is the one dealing with fixtures and fittings. The clause will read something like this: The Property is sold inclusive of all existing FIXTURES AND FITTINGS of a permanent nature, which the Seller warrants are their exclusive property and fully paid for. These, together with the following movable items which are...
Paying occupational rent and the consequences of failing to do so should be as simple as paying your bond every month, but all too often other issues arise to complicate matters, usually because buyers and sellers have all sorts of preconceived notions about the laws governing occupational rent, which invariably works in their favour alone. It is important to know what the myths are in this field and what...
It remains a fixed principle in law that the conveyancer represents the seller, regardless of who appointed them. This is because the seller authorises the transferring attorney, by way of a power of attorney, to transfer the property to the purchaser. The parties may agree to use the purchaser’s transferring attorney; however, should the seller refuse, the transferring attorney of the seller must...
An Explanation of the “Effective Cause” Commissions Due in Terms of a Contract Property practitioners need to know precisely what they have to do to secure their commission in a sale, as disputes often arise after a sale is concluded or, commonly, where the Seller has deliberately or innocently avoided their property practitioner when finalising sales with prospective Buyers. The law at this...
The sale or purchase of a property is, for many people, one of the most important transactions they will enter into in their lifetime. The parties to a Sale of Land Agreement will inevitably enter into a contractual relationship that will have legal consequences for both the purchaser and the seller. It is often the case that contracts are cancelled, and this is when an understanding of certain clauses and...
Electrical Certificates There is an obligation in law that when a property is transferred, a valid electrical compliance certificate must exist or there is an obligation to obtain one. This onerous obligation is most often placed on the seller and extends beyond a mere contractual obligation, as it is governed by statute, namely, the Occupational Health and Safety Act of 1993 (as amended)...