WE HAVE RELAUNCHED OUR KZN OFFICE!
Earlier this month, we celebrated the relaunch of our office in KwaZulu-Natal, which marks a significant milestone in our commitment to expanding our nationwide presence and delivering exceptional and unrivalled client service to the people of South Africa. Managed by experienced Directors Stavros Anthias and Renelle Moodley, our KZN office specialises in property law, conveyancing, commercial law, and estates. With the expertise and dedication of Stavros, Renelle, and their team, we are confident that our KZN relaunch will contribute to our continued success in the province and beyond.
Visit us at Cranbrook Park, 2 Cranbrook Crescent, La Lucia, Durban, or contact us at 031 583 8060 to discover how we can assist you today!
SECURING LAND TENURE: AN OVERVIEW OF THE KEY PROVISIONS OF THE DEEDS REGISTRIES AMENDMENT BILL
The Deeds Registries Amendment Bill (‘the Bill’) is currently awaiting presidential assent. The Bill, which was first tabled before Parliament in late 2022, is expected to be signed into law shortly. Designed to advance the realisation of secure land tenure under section 25(6) of the Constitution, the Bill introduces numerous amendments to the Deeds Registries Act (‘the Act’), which governs the registration of deeds in South Africa.
NAVIGATING THE TAX LANDSCAPE: CLARIFYING TRANSFER DUTY V VAT ON THE SALE OF SHARES IN A PROPERTY-OWNING COMPANY CONNECTED TO AN ENTERPRISE
By Abduraghmaan Farao
In a property-related transaction, one is responsible for paying transfer duty or VAT. There is no division or apportionment of these payments, which are regulated under two separate Acts.
Under the Transfer Duty Act 40 of 1949 (‘TD Act’), the purchase of shares in a company is subject to transfer duty if the company is a residential property company. As defined in section 1(1)(b) of the TD Act, a ‘residential property company’ is a company that holds residential property where the fair value of the property comprises more than 50% of the aggregate fair value of all assets held by said company. Under the same Act, a ‘residential property’ includes any dwelling-house, apartment, and holiday home, but excludes a hotel, guesthouse, and apartment complex of five or more units used for rental purposes.
TAKE ADVANTAGE OF THE CITY OF CAPE TOWN’S SPECIAL RATES REBATE FOR PENSIONERS
Property owners aged 60 or older who are dependent on a pension or social grant, and whose monthly household income falls between R7 501.00 and R22 000.00, may qualify for a 10-95% municipal rates rebate.
The rebate is not applied automatically, and applications can be made by downloading and completing this form, which is available in English, isiXhosa, and Afrikaans. Applicants should email their completed forms to rates.rebate@capetown.gov.za or hand-deliver them to their nearest municipal office or civic centre.
COMMISSION CONFUSION: IS IT STILL PAYABLE ABSENT PRIOR AGREEMENT?
Recently, the Durban High Court adjudicated a dispute arising from the payment of estate agents’ commission. In Golden Rewards 120 CC t/a Remax Marine v M3 Holdings (Pty) Ltd, an agent was tasked with finding a lessee for a commercial property under a verbal (later confirmed in writing) mandate for a five-year lease. The agent successfully introduced a lessee to the lessor, facilitated changes to the lease terms, and ensured they submitted a draft lease for the lessor’s approval. The lessor accepted the terms and finalised signature of the lease, and rebuffed the agent’s subsequent inquiry as to the payment of commission. The lessor argued that no commission was owed to the agent because both the verbal and written mandates stipulated that commission terms were still to be agreed upon, which agreement never materialised. Ultimately, however, the court ruled in favour of the agent.
CONVEYANCING TRANSACTIONS AND CYBER FRAUD
Last month, the Supreme Court of Appeal overturned a High Court ruling that ordered a law firm to compensate a purchaser R5.5 million stolen by fraudsters who infiltrated her email account and altered emails sent from the firm. The judgment is an important reminder to always adhere to cyber security protocols – and to verify a recipient’s bank details telephonically before making an electronic payment.
IT’S NOT TOO LATE TO REGISTER FOR OUR UPCOMING WEBINAR!
In this month’s instructive webinar, join co-hosts Junel Hickman and Stefan Hougaard for a discussion on the intricacies of bonds. Focusing on the distinction between mortgage and notarial bonds, Conveyancer and Senior Associate, Junel, will elucidate the security these instruments offer and their significance to property transactions. Against this backdrop, litigation specialist and STBB Director, Stefan, will guide participants through the practical enforcement of bonds. Whether you’re a potential purchaser intending to apply for a bond, an experienced agent looking to brush up on your knowledge, or an aspiring attorney with a special interest in property law, secure your spot now.
MISSED LAST MONTH’S PODCAST?
Does listing your property during the winter months negatively impact its re-sale value? Tune into this brief, but insightful, episode with Dillon Lebotschy as he explains why there may be untapped advantages to selling your property during winter!
