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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

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

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

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

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

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

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