This week our experts deal with a sticky situation involving the joint ownership of a property - proving that a problem shared is not always a problem halved. A reader writes that his mother passed away some 30 years ago, leaving her fixed property to be shared equally between him and his brother. He says that his brother never once used the property, whereas the reader used it as a holiday home. It appears that no agreement was ever reached between the brothers concerning the payment … [Read more...] about House Divided
Property Poser
Time out for Transfer
This week our experts shed light on the transfer process and how long it typically should take. A reader made an offer to purchase a property - subject to obtaining a bond to finance it and selling her existing property within three months. However, the property that she purchased is one of two houses on a piece of land that was to be subdivided into various stands for a cluster housing development. The Section 21 company, which will form the basis of the homeowners' association, has … [Read more...] about Time out for Transfer
Letting Agent go
The question posed to our panel this week revolves around estate agents managing rental contracts. The reader would like to know whether he, as lessor, may terminate a tenant's contract and then continue with the same tenant under a new lease agreement that excludes the agent. He was told by the letting agent that only the tenant may terminate the lease agreement. Also, if the tenant and landlord were to conclude a new contract excluding the agent, the agent would still be entitled to his … [Read more...] about Letting Agent go
Tenant has trust issues
This week, a reader asks our experts for assistance regarding the leasing of a commercial property, which had been jointly owned by a trust and a natural person. At the beginning of the lease agreement, the reader made improvements to the property by installing a shower room, with the consent and knowledge of the person who co-owned the building. It appears that the lessee did not deal with the trust, but only with the other part-owner and paid the initial deposit and all rental over to … [Read more...] about Tenant has trust issues
Cracking down on defects
The topic of latent and patent defects requires further discussion since our panel is often asked to comment on situations relating to this issue. This week's question comes from a reader who purchased a property in 2003 for the sum of R160 000. Two years ago, cracks started appearing in the walls of the garage. Upon investigation, the insurance assessor found that the cracks were due to structural failure and that these had been repaired and painted over "before the sale took place". The … [Read more...] about Cracking down on defects
A bond for life
This week our panel of experts considers the important issue of the insurance requirements with regard to mortgage bonds. A reader would like to know whether it is compulsory for a bondholder to take out life insurance when a bond is registered in his or her name. She also asks what would happen if a bondholder were to die without any life assurance. The question is whether there is negligence on the part of the bank for not insisting on life assurance. Charl Crous from Du Toit … [Read more...] about A bond for life
Structuring a section
At a time when space comes at a premium, our experts encounter issues relating to sectional title complexes with increasing frequency. One such issue relates to the structural status of wendy houses and lapas erected on exclusive use areas. A reader would like to know how such structures affect participation quotas and whether they need to be registered with the Surveyor-General. "In terms of the Sectional Titles Act, a sectional owner acquires ownership of his or her section and joint … [Read more...] about Structuring a section
Complexities of mismanagement
Our experts have been called on once again to deal with mismanagement problems in a sectional title complex. One of our readers is a trustee for the complex in which he lives. He complains that he is always outvoted on matters he feels are important and in line with his vision for the complex. He claims that the complex is not being properly maintained and that the gardens are not being kept tidy. Despite the imprudent use of existing funds, the monthly levies continue to increase and are … [Read more...] about Complexities of mismanagement
Executing a disputed sale
A reader has enlisted the help of our experts regarding a property he purchased from a deceased estate. In September last year, he signed an offer to purchase in his capacity as trustee of a trust. One of the terms of the agreement was that transfer would take place by November. Shortly after the reader and the executor of the estate signed the offer to purchase, the executor objected to the terms and insisted on a new contract. The original offer was drafted by the agent who was … [Read more...] about Executing a disputed sale
Rental income is taxing
This week a reader asks our panel of experts to clarify the issue of income tax as it relates to rental income. The reader and her spouse are joint owners of a property, which they rent out. She is no longer employed and this rental currently represents her only income. The rental money is also used to pay the membership fees for their medical aid scheme, of which the reader is its principal member. She would like to know whether she would be able to reflect the rental income and … [Read more...] about Rental income is taxing
Fine time to pay levy
www.MyPE.co.za: A resident of a sectional title complex, who was fined for non-payment of a special levy, has approached our panel for some expert guidance. In June last year, says the reader, all residents were informed of the introduction of the levy, which would be "payable over the next six months". She also reports that the managing agent confirmed the full payment would be due by December 10. It was the reader’s understanding that the levy could be paid in varying instalments or, as … [Read more...] about Fine time to pay levy
No Will to Keep Property
www.MyPE.co.za: A reader, whose mother passed away without leaving a will, has approached our experts with a query about transferring a fixed property to a beneficiary. He has obtained a letter of executorship and would like to know what the transfer process entails, how long it will take and whether the property can be sold. "The panel has touched on this issue before, but it is useful to point out some of the important aspects again," says Charl Crous from Du Toit Strombeck Attorneys in … [Read more...] about No Will to Keep Property
Changing the Scheme of Things
www.MyPE.co.za: This week our panel of experts addresses the issue of whether a sectional title scheme could be converted into a homeowners' association. As manager of a body corporate, one of our readers is often confronted by annoyed sectional title owners who cannot understand why they require permission to make alterations to their property. She would like to know if they could be appeased through a change in the structure of ownership. "To answer this, we really have to look at each … [Read more...] about Changing the Scheme of Things
Getting a Handle on Access Rights
www.MyPE.co.za: This week our panel of experts examines the issue of a reader's right of access to his property via a so-called "panhandle". He says the vacant stand adjacent to his property was recently sold and the new owners also have access to their property via the same panhandle. The reader would like to know whether he could cut back the trees and vegetation along his driveway and erect a wall without the neighbours' consent. "It is important to establish what the legal rights … [Read more...] about Getting a Handle on Access Rights
Sweeping Defects Under the Rug
www.MyPE.co.za: The tricky issue of latent versus patent defects raises its head again this week. A reader recently signed an offer to purchase on a property, which the seller had originally bought on auction and renovated before putting up for sale. The owner assured the purchasing reader that the house had wooden floors, even though these were covered with carpet when the offer was signed. The reader visited the property again while the transfer was in progress to take certain … [Read more...] about Sweeping Defects Under the Rug
