BUYING IN THE WESTERN CAPE

With an ever increasing footprint in the Western Cape property market, we came across this article by Private Property that is packed full of vital stats for potential property buyers in the Western Cape - and in particular - Noordhoek!

For some, your work may require you to semigrate, for others you've contracted the coastal fever and can't wait to sink your feet into some beach sand, whilst others may simply be looking for a good investment.

According to FNB's Regional Migration Trends report, the Western Cape continues to outperform other provinces in terms of its ability to attract repeat home buyers from other provinces and retain its own.

This north-facing Lake Michelle home with three bedrooms, three bathrooms and two lounges, boasting panoramic views of Chapman’s Peak, was sold for R3.2 million.

According to the report, the big four provinces (Gauteng, Western Cape, KwaZulu-Natal and Eastern Cape) have the lowest percentage of repeat buyers buying in other provinces, with the Western Cape having the lowest percentage of repeat buyers buying elsewhere, recording a total of 12.9% of its total repeat buyers.

Writing in the report, John Loos, FNB household and property sector economist, and Kutlwano Maphapho, FNB statistical analyst, explain that the 2012 level of repeat buyer outflows correlates broadly inversely to relative provincial economic performances over the prior five years (2007-2011), with the major provinces showing both the higher average economic growth rates along with the lower repeat buyer outflow rates.

BUILDING LOANS ARE DIFFERENT

It's exciting when you find the perfect place to build your dream home! But remember that when a bank grants a purchaser a building loan to build on vacant property, many compliance issues arise, making the registration of the transaction somewhat more lengthy.

Banks require long lists of documentation to ensure that there is adequate value in the home to be constructed to cover the loan, and also that all legalities are complied with so that the bank can sell the property in execution without unnecessary complication, should the purchaser default.

This could cause delays in registration if not complied with BEFORE registration and even lodgement. Here are some examples of the documentation that may be required.

It is best to get professional advice when applying for a building loan to make all the additional paperwork as painless as possible.

Contact the property professionals for more info: allison@rivigangroup.com

<original article from stbb>

TO WHAT EXTENT SHOULD YOUR SECURITY PROTECT YOU?

In a recent judgment by the Supreme Court of Appeal, the Court investigated the question whether a private security guard company can be held liable for a client's damages that arose after its employee allowed robbers entry to that client's family home, believing them to be police officers.

Our law acknowledges that in such a relationship, the guard has a duty of care with regard to the client, his home and property; but what is the extent of this duty?

After the incident, the family sued the security company that employed the security guard for the damages they sustained during the robbery. The South Gauteng High Court found in their favour and held the security company liable. The company then appealed to the Supreme Court of Appeal ('the SCA') against this decision.

Click here to read the full story!

SARS TO KNOW MORE ABOUT YOU

MORE WAYS THAN ONE IN WHICH THE TAXMAN KNOWS YOUR INCOME

Taxpayers are in for a stronger audit from SARS with the new requirement that certain persons – such as banks, financial institutions and medical schemes – must submit third party returns.

Estate agents and attorneys are also required to submit third party returns if they “pay amounts to, receives amounts on behalf of” another person. As such interest earned on a purchase price deposit or occupational rental collected, will be brought under SARS’ attention, via the estate agent or attorney as third party.

The information provided to SARS in this way will be used to pre-populate a taxpayer’s return and will help SARS to verify accuracy of taxpayers’ disclosures.

Contact us at allison@rivigangroup.com should you have any questions in this regard.

Article courtesy of our lawyers www.stbb.co.za.

‘OCCUPATION’ vs ‘POSSESSION’

With legal jargon as confusing as it is, and the fact that legislation keeps changing and moving the goal posts, it's essential that we do all that we can to keep our clients up to date with legal information that can help them make informed decisions around their property investments!

Every week our lawyers (Smith Tabata Buchanan Boyes) send us great little snippets that are really useful.  Here is one of them regarding the difference between occupation and possession - two fundamentally different concepts.

Many homebuyers are unaware of the legal difference between the terms ‘occupation’ and ‘possession’ of a property as used in sale agreements.

REACHING OUT TO OUR LOCAL COMMUNITY

There are very few people who are fully concerned with the welfare of others.  Home of Hope in Tableview is full of such people!  It is for this reason that we have made supporting them a priority for our Rivigan Property Cape Town team.

After our last visit, in April 2013, they had this to share with us:

If children live with security, they learn to have faith. If children live with approval, they learn to like themselves. If children live with acceptance and friendship they learn to find love in the world.

Thank you for reaching out to us and sharing your love.

At Home of Hope we are trying to create this positive environment so that our children can learn these invaluable lessons, and experience the love they so deserve.

It is through the generous donations and support that we are equipped to do so.

Thank you for your donation of the Easter eggs. It was greatly appreciated, and enjoyed!

You have made a difference to us and to the children and we thank you. We pray that you, the giver, find rich reward in the gift of giving.

If you would like to support them too, please visit their website, www.homeofhope.co.za,  and explore the many options to get involved with this community assistance project!

IS YOUR DIVIDING WALL ON YOUR BOUNDARY?

NEIGHBOURS’ DISPUTE WHEN LEARNING DIVIDING WALL NOT ON BOUNDARY

The law will try to exercise its discretion to address the interests of both parties.

When our lawyers, STBB sent us this, we thought it would be very applicable to many of our new home owners! This judgment is an illustration of the exercise of a Court's discretion when faced with a dispute between two owners relating to the boundary between them.

The wall between the erven was, unbeknownst to all, not on the boundary. The Court noted here that demolition is not necessarily the only remedy in the case of encroachment and exercised its discretion to address the interests of each of the owners.

The full judgment can be viewed here.  Roseveare v Katmer, Katmer v Roseveare and Another (2010/44337, 2010/41862) [2013] ZAGPJHC 18 (28 February 2013)

RENTING OUT DIGS FOR STUDENTS

STUDENT ACCOMMODATION & ZONING LAWS

Stellenbosch offers great opportunities for property investment
with the growing demand for student accommodation.  Make sure
you're buying within the correct zoning provisions!

In a recent email from one of our lawyers, Smith Tabata Buchanan Boyes, a case was highlighted where an owner was renting part of her property out to students in Stellenbosch.

This is an important judgment to anyone offering accommodation to students. The Court here granted the Stellenbosch Municipality’s application for an interdict to prohibit a property owner from offering student accommodation if the property zoning only allows for a dwelling house to be occupied by one family. The owner must obtain the required permission from the municipality or face the penalties.

The full judgment can be read here.  Stellenbosch Municipality v Van Wyk and Others (1549/2012) [2013] ZAWCHC 18 (8 February 2013)

HERE ARE THE FACTS

This matter deals with an application by the Stellenbosch Municipality for an order interdicting Ms Van Wyk from providing student accommodation on her residential property in Stellenbosch, as it is contrary to the provisions of the applicable zoning scheme.

HOW DOES THE 2013 BUDGET EFFECT THE PROPERTY MARKET?

Minister of Finance, Pravin Gordhan, delivered the National Treasury's budget for 2013/2014 at 14h00 yesterday afternoon. From a property law point of view, it is business as usual as transfer duty, donations tax, the capital gains tax inclusion rate, VAT and estate duty have remained unchanged! 

If you have any queries - contact us at allison@rivigangroup.com.

WHO IS LIABLE FOR PAYMENT OF A SPECIAL LEVY?

In a recent email from one of our conveyancors (STBB), they answered this question brilliantly.  This troublesome issue has a simple answer!

The Sectional Titles Act makes provision for it in Section 37(2A), which states that a special levy becomes due on the passing of a resolution levying such contribution and may be recovered by the body corporate from the persons who were the owners of units when the resolution was passed.

This becomes especially important when a special levy is raised after an owner has sold his unit, but before the transfer of ownership has taken place. If a seller was the owner at the time the special levy was raised and therefore when it became due and payable, the body corporate must recover the special levy from him and has no legal entitlement to recover the special levy from the purchaser as the new owner, unless there is a contractual agreement to the contrary.

In these circumstances it is very important to deal with the issue of special levies in each and every agreement of sale that relates to sectional title property.

If you would like more information on this topic, please feel free to contact us at allison@riviganpg.co.za.