'ROUWKOOP' CLAUSE : WHEN DOES IT APPLY?

from our legal team

A 'rouwkoop' clause included in a sale agreement provides for the purchaser to pay a deposit to the seller which may be retained by the seller should the purchaser decide to withdraw from the agreement.

This does not constitute breach of the agreement, but is a mechanism whereby the purchaser legally buys his way out of the agreement.

CAN THE SALE OF A PROPERTY…

be subject to both transfer duty and vat?

In a recent article from our lawyers, the answer is a resounding “NO!”

Here’s why:
The Seller determines whether the transaction will attract VAT or transfer duty and VAT takes precedence over transfer duty.

LANDLORD & TENANT

electricity blues

 It is common practice, in lease agreements, that the Landlord and Tenant contractually arrange which party will be liable for the costs of electrical consumption on the leased premises. 

However, this arrangement applies between the parties only: the 2010 Electricity Supply By-Law of the City of Cape Town municipality regulates the relationship between the “consumer” of the electrical supply and the municipality, as supplier thereof.

Read the details of the By-Law here.



Landlords, make sure you are not caught out of pocket as a result of your Tenant's failure to pay the municipality for the electrical supply: Contact us at allison@riviganpg.co.za to review your agreement where necessary.