What is a sole mandate?

When homeowners decide to sell their property and have chosen an estate agent/agency to market their property, they will be asked to sign a sole mandate with the said estate agent/agency. A sole mandate is given to only one agency and no other. This is different from an open mandate, which means that the property goes to as many agencies as the seller wishes. It is important to note that a sole mandate is a legally binding agreement, therefore, the seller must understand and agree to all the terms and conditions set out in the agreement.

What are the requirements?

• A sole mandate must be a written agreement• The sole mandate needs to include the seller’s signature• The expiry date of the sole mandate must be recorded in the agreement• The estate agent is responsible for supplying the seller with a copy of the sole mandate • The estate agent is responsible for explaining the meaning and consequences of the sole mandate to the seller• The estate agent is responsible for explaining the legal implications that would occur, should the seller sell the property without the assistance of the estate agent or through the intervention of another estate agent

What are the benefits of a sole mandate?

One of the main benefits the sole mandate system is that it forces agents to put all their focus on a few properties, instead of running around, desperately trying to get more and more properties to sell and market. Other benefits include:

• The seller could get a better price for their property when employing a sole mandate agent• The agent will put more energy, effort and money into the marketing of your property • By employing a sole mandate agent, the seller can avoid double commission claims, thus saving him/her money

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THE REQUIREMENTS AND BENEFITS OF A SOLE MANDATE

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• The seller will have more privacy and security, as there won't be a potential buyer walking through the door • When too many agents are marketing the same property, it could lower the property value• Only one “For Sale” sign will be placed outside your property, which means that potential buyers should contact only one agent or agency• The sole mandate agent has a whole team to back him/her and has access to a full buyer list, which means that a quick sale at the best price is more likely

TIPS FOR RENTING OUT YOUR PROPERTY

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Regardless of whether the property you are renting out is a studio apartment, a cottage at the back of the garden or an entire estate, the same rules apply and need to be understood in order to make a success of your investment in the property. To invest in a property is a very big commitment and you don’t want to end up in a situation where you lose on the investment because you didn’t follow all the necessary steps to prevent this from happening.

1. Handle your tenants constructively

Establish a fair system of setting, collecting, holding, and returning deposits. Inspect and document the condition of your property before the tenant moves in to avoid conflict regarding the refund of deposits. This inspection should preferably be done with the tenant being present. Try to resolve disputes with your tenants without the involvement of lawyers and lawsuits. If you’re having an argument with a tenant that doesn't immediately call for an eviction, meet with them and try to resolve the problem in person.

2. Keep your tenants happy

Keep up to date on maintenance and repairs needed to the property and make sure these are done when the tenants request any work to be done. If your property is not kept in good condition, good tenants will not want to stay on. Remember, your tenants are your customers, make sure they are happy. Although it is recommended to inspect your property from time to time to check that the condition of your property is up to standard, you must remember that your tenants’ privacy must be respected at the same time. Notify them if you’re planning to inspect the property and make sure to let them know a while in advance.

3. Make sure the property is safe

Don't let your tenants and property be easy targets for criminals. If the property needs security additions, take the necessary steps to protect it. Proper lighting, trimming tree branches that hang over the wall and efficient security gates are often all that is needed. If there is a hazard such as mould due to leaks, your tenants should be informed beforehand and steps should be taken to fix the problem. If your tenants later suffer from health problems that can be linked to the hazard in the property, you might be held responsible.

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You’ve scoured the web for what feels like weeks, and you’ve finally found your dream home! You’ve put in your offer, and it’s been accepted. But before you can pack your boxes and move into your dream home, there are certain requirements needed when buying a home in South Africa.

Property sales are usually handled by estate agents. They will assist in preparing the necessary documents and put the transfer and registration process into motion. In some cases, owners will buy and sell property privately, as this is legal in South Africa.

Once you want to purchase a property, the following will happen:

1. A document titled, “Offer to Purchase” will be signed by the purchaser as soon as the purchaser and seller have come to a mutual decision. 2. The purchaser signs the Offer to Purchase, after which it is submitted to the seller. 3. The signed Offer to Purchase becomes the new Deed of Sale. In the Deed of Sale, there may be certain suspensive conditions such as raising a mortgage bond, and once these conditions have been met, the contract between the purchaser and the seller will be binding.4. The Deed of Sale is then sent to a conveyancer, who will take care of all the financial arrangements and ensure that all finances are in place and secure. 5. Before the transaction can be submitted to the Deeds Office, the conveyancer will prepare all the documents. Once these documents have been submitted, the transfer process will begin.6. A Municipal Clearance Certificate for rates and taxes is then requested by the conveyancer from the municipality. 7. The purchaser is required to pay the transfer duty and registration costs before the documents will be submitted to the Deeds Office, while the seller will have to provide a Tax Clearance Certificate acquired from SARS.8. At the time agreed upon in the Offer to Purchase, a cash deposit for the balance of the purchase price will have to be made into the conveyancer’s trust account.9. If the property has a mortgage bond, a bond attorney will have to cancel the bond registration.

10. The transfer process can take two to three months to be finalised and the purchaser will be kept up to date on the progress of the transfer by either the agent or the conveyancer.

Once the property is registered in the purchaser’s name, the property officially has a new owner, and you can start moving into your newly-bought dream home!

WHAT DOCUMENTATION IS NEEDED FOR BUYING A PROPERTY IN SOUTH AFRICA?

Conclusion

It is advised to document everything possible regarding the renting of your property – from the rental contract to how you handle complaints. Remember that it is of utmost importance to get insurance for your property. You must protect yourself against possible losses to your rental property caused by anything from vandalism to natural hazards.

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The economic downturn has taken its toll on South Africans over the past few years. Most simply cannot keep up with the hikes in fuel, rates and taxes, basic foods, water, etc. The strain has pushed house-holds in search of any means to reduce expenses and to save wherever they can. This is visible during the ongoing drought in Western Cape as more and more households invest in boreholes to escape the rise in water tariffs.

Many households have invested in Solar PV to cut electricity costs and to ensure the lights stays on during load shedding or simply to reduce the reliance on government. For some, going green is simply the only way forward as no one is sure what to expect in the coming years.

The City of Cape Town released a statement on 24 July 2018 encouraging citizens to register both grid-tied and off –grid small –scale embedded generation (SSEG). The City of Cape Town has set 28 FEBRUARY 2019 as the deadline by which these installations must be registered. The exception under the by-law is that the SSEG Regulations do not apply to solar water heaters.

The City encouraged citizens to go green and has ensured that the registration process is not too penal-ise existing and future citizens’ attempt in going green, simply to ensure that it is installed to code. By connecting the SSEG system to the grid, it can pose a safety risk to the self-same grid. The City has issued regulations and guidelines ensuring that all generating equipment is approved and installed correctly. It is of utmost importance to note that this bylaw is not new, but has been in existence since 2010 and may become a national legal requirement.

The deadline should by no means be taken lightly as adequate time was given since 2010 to register all solar systems for authorization. To place emphasis on the importance herein, the City has warned that hefty fines will be dealt out to those whose solar systems do not comply with the bylaw. Non-compliance can result in the disconnection of the SSEG system with a fine of R6 425.90 or more. In addition, the City also has the authority to disconnect the supply of electricity to the property until the existing SSEG system has been disconnected or the necessary authorisation obtained, as well as the service fee paid in full.

The unauthorised supply of electricity may be disconnected by the City and can result in fines of up to R10 000, imprisonment of up to six months as well as being held liable for the costs in disconnecting such unauthorised supply. A further concern is that in the event of damage due to an electric shortage/-fault it is found that the SSEG system in non-compliant, thus unauthorised supply, your insurance com-pany may just abandon your claim due to the alteration. It is possible that you may not be able to obtain an electrical compliance certificate which, is a requirement when you sell and transfer your property, as equipment and alteration to the City’s grid will be regarded as illegal.

The City, in their attempt to accommodate citizens as far as possible has also granted a grace period of six months. Allowing citizens to register and obtain the necessary written authorisation letter from the City. This does not mean that you can postpone the registration of your SSEG system after the deadline. In the City’s statement, they make it clear that in the event that the SSEG system is registered after the deadline but, during the six months grace period, registration for authorisation will be accepted.

SOLAR INSTALLATIONS: REGISTER NOW! Provided that the system is compliant with the City’s by-law. In the event that the system in found non-compliant, it will have to be disconnected until written authorisation obtained. It is clear that in order to minimize the risk of receiving fines from the City, registration should take place in accordance with the deadline. The registration alone of your SSEG system does not meet all the requirements. There are five steps in total which, in summary include:

• Submit the application form; • the assessment of the said application which include an inspection of the connection and meter; • obtaining the “permission to install letter”; • request from the City to lodge further documents such as the electrical certificate of compliance and circuit diagram;• sign the contract once appointment has been scheduled by the City.

Once this has been done, you will receive the approval letter. All the necessary forms and more in-depth information can be found on the City’s website.

SOURCES:1. http://resource.capetown.gov.za/documentcentre/Documents/Bylaws%20and%20policies/ Electricity%20Supply%20By-law.pdf2. http://www.capetown.gov.za/City-Connect/Apply/Municipal-services/Electricity/ apply-for-authorisation-for-grid-tied-sseg

The economic downturn has taken its toll on South Africans over the past few years. Most simply cannot keep up with the hikes in fuel, rates and taxes, basic foods, water, etc. The strain has pushed house-holds in search of any means to reduce expenses and to save wherever they can. This is visible during the ongoing drought in Western Cape as more and more households invest in boreholes to escape the rise in water tariffs.

Many households have invested in Solar PV to cut electricity costs and to ensure the lights stays on during load shedding or simply to reduce the reliance on government. For some, going green is simply the only way forward as no one is sure what to expect in the coming years.

The City of Cape Town released a statement on 24 July 2018 encouraging citizens to register both grid-tied and off –grid small –scale embedded generation (SSEG). The City of Cape Town has set 28 FEBRUARY 2019 as the deadline by which these installations must be registered. The exception under the by-law is that the SSEG Regulations do not apply to solar water heaters.

The City encouraged citizens to go green and has ensured that the registration process is not too penal-ise existing and future citizens’ attempt in going green, simply to ensure that it is installed to code. By connecting the SSEG system to the grid, it can pose a safety risk to the self-same grid. The City has issued regulations and guidelines ensuring that all generating equipment is approved and installed correctly. It is of utmost importance to note that this bylaw is not new, but has been in existence since 2010 and may become a national legal requirement.

The deadline should by no means be taken lightly as adequate time was given since 2010 to register all solar systems for authorization. To place emphasis on the importance herein, the City has warned that hefty fines will be dealt out to those whose solar systems do not comply with the bylaw. Non-compliance can result in the disconnection of the SSEG system with a fine of R6 425.90 or more. In addition, the City also has the authority to disconnect the supply of electricity to the property until the existing SSEG system has been disconnected or the necessary authorisation obtained, as well as the service fee paid in full.

The unauthorised supply of electricity may be disconnected by the City and can result in fines of up to R10 000, imprisonment of up to six months as well as being held liable for the costs in disconnecting such unauthorised supply. A further concern is that in the event of damage due to an electric shortage/-fault it is found that the SSEG system in non-compliant, thus unauthorised supply, your insurance com-pany may just abandon your claim due to the alteration. It is possible that you may not be able to obtain an electrical compliance certificate which, is a requirement when you sell and transfer your property, as equipment and alteration to the City’s grid will be regarded as illegal.

The City, in their attempt to accommodate citizens as far as possible has also granted a grace period of six months. Allowing citizens to register and obtain the necessary written authorisation letter from the City. This does not mean that you can postpone the registration of your SSEG system after the deadline. In the City’s statement, they make it clear that in the event that the SSEG system is registered after the deadline but, during the six months grace period, registration for authorisation will be accepted.

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Provided that the system is compliant with the City’s by-law. In the event that the system in found non-compliant, it will have to be disconnected until written authorisation obtained. It is clear that in order to minimize the risk of receiving fines from the City, registration should take place in accordance with the deadline. The registration alone of your SSEG system does not meet all the requirements. There are five steps in total which, in summary include:

• Submit the application form; • the assessment of the said application which include an inspection of the connection and meter; • obtaining the “permission to install letter”; • request from the City to lodge further documents such as the electrical certificate of compliance and circuit diagram;• sign the contract once appointment has been scheduled by the City.

Once this has been done, you will receive the approval letter. All the necessary forms and more in-depth information can be found on the City’s website.

SOURCES:1. http://resource.capetown.gov.za/documentcentre/Documents/Bylaws%20and%20policies/ Electricity%20Supply%20By-law.pdf2. http://www.capetown.gov.za/City-Connect/Apply/Municipal-services/Electricity/ apply-for-authorisation-for-grid-tied-sseg

THIS NEWSLETTER IS COMPILED IN-HOUSE BY BYRON WHITE OF ESI ATTORNEYS.

Please contact ESI A�orneys at 021 943 5111 or Robert Louw at robert@esilaw.co.za should you have any further queries and/or would like to make sugges�ons for future property related ar�cles!