This week the Property Poser expert considers the question of the calculation of pro rata rental. A reader writes that his tenant vacated his leased premises during February, which is the shortest month of the year, and did not stay for the full month. The reader correctly pointed out that, if one takes the monthly average over an annual period and calculates the pro rata rental for a shorter month, a disparity will arise. Although he does not give the reasons for the early departure, … [Read more...] about Calculating pro rata rental fairly
property poser
Should you employ a letting agent?
This week the Property Poser expert assists a reader who does not have a problem at present but is proactively trying to prevent one. The reader explains that she would like to rent out her townhouse, which is in a sectional title complex, and is considering using the services of an estate agent to make the process easier. The agent has found a seemingly suitable tenant and is pressing the reader to sign the contracts he has provided, namely a mandate and lease agreement. The reader is … [Read more...] about Should you employ a letting agent?
Water damage to rental premises
A tenant has asked the Property Poser expert to wade through a difficult situation involving his rental property, which has been flooded twice. The reader explains that the second flooding was so bad that he had to call the fire brigade to pump out the water. He now wishes to know whether he has a claim against his landlord for damages to his furniture. Sean Radue of Radue Attorneys in Port Elizabeth says the lessor has the duty to give the lessee the beneficial use and enjoyment of the … [Read more...] about Water damage to rental premises
Mend those brotherly communication fences
This week the Property Poser panel deals with a case of sibling rivalry between two brothers who co-own a property, in which the one lives. The reader, who resides elsewhere, appears to be having communication issues with his brother. He has discovered that his sibling has made arrangements regarding outstanding instalments and payments at the bank and municipality without his knowledge. The reader does not, however, mention whether the arrangements entered into have any direct financial … [Read more...] about Mend those brotherly communication fences
Trust no sleeping partner
This week a reader asks the panel's opinion on setting up a business as a company and whether it would be wise for a trust he is part of to own shares in it. The reader would also like to know what the tax implications of this structure might be. This is a reasonably complex issue with many aspects to consider, says Rian du Toit from DTS Attorneys in Port Elizabeth. "It's quite a common planning technique to run one's business in a company as opposed to a sole proprietorship, where … [Read more...] about Trust no sleeping partner
Storm Brewing Over Runoff
With all the rain that has fallen across the country recently, it is not surprising to hear from a reader who complains about the manner in which his neighbour diverts stormwater runoff. He writes that his neighbour has made numerous holes in their shared boundary wall, diverting stormwater to the reader's side. The problem is exacerbated by the fact that the properties are on an incline, with the reader's erf being the lower of the two. The reader would like to know whether this practice … [Read more...] about Storm Brewing Over Runoff
Of Moral, Latent and Patent Defects
This week, our panel deals with a question from a reader grappling with the issue of moral defects versus latent and patent ones. The reader is currently renting a property, which is on the market and has been viewed by several potential buyers. When questioned by the viewers about possible issues or faults relating to the property, he has responded truthfully. Unfortunately, it appears that there are structural defects, which have caused the walls and tiles to crack. The reader’s … [Read more...] about Of Moral, Latent and Patent Defects
Property Purchase up in Heir
This week our panel helps a reader who is uncertain about what the heirs can do with a property that forms part of a deceased estate. The reader explains that she is currently living in a property that belonged to a deceased family member and she now wishes to make an offer to purchase on it. She does not mention how long ago the family member passed away but it appears that the transfer from the estate to the ultimate beneficiary has not yet taken place. The matter is further complicated by … [Read more...] about Property Purchase up in Heir
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
