Practice
News
Legal Practitioners
Dr Hlope has been in the news quite often of late; the MK party’s application for leave to appeal the decision that Hlope be prohibited from serving on the JSC will be heard on the first November.
Dali Mpofu SC is a well-known practitioner for mostly the wrong reasons: he was taken to task by Judge Ponnan for his recent role theatrics; give that judge a Bells! This incident took place during
a failed SCA appeal application brought by our erstwhile PP Mkhwebane.
Some three weeks or so ago, our Minister of Justice had been in the news on the issue of her VBS embroilment and, having heard her and noting her inability to distinguish between borrowing and lending, I confess to having doubts about her suitability for the post.
RAF
The RAF has been granted relief leave to appeal against a recent judgement, which scrapped this its attempts to impose stringent new requirements on claimants.
The AG raised concerns regarding the RAF financials, describing them as “not credible”.
Nevertheless, the RAF reported a significantly reduced financial deficit. One must be sceptical, as a similarly dated Citizen report held that the RAF had a R8.27bn claims backlog – which, of course, the RAF CEO challenged strenuously.
The RAF attempt to avoid paying interest on court orders, has been dismissed by the Pretoria High Court.
A recent article by DSC, claims that it takes between three and six years for the RAF to pay out on a claim instituted against that entity.
Lastly, the SIU is now investigating the ejection by the RAF of its panel attorneys. This is going to be fun as, if not a business decision, then who would benefit from this?
Our ability to withdraw a part of our pensions early has been much in the news of late. How are these dealt with on divorce: https://www.dotnews.co.za/Code/Article.aspx?qry=yKPR5eDKNlaukY9Ps7iCg3x2G68IxYIBM66umpQfbx-cXrDVCApCnWA31prdEHOFHplTxffN_bT9OZBuREdW2v8DDOmhQqH-IjRAqUxbnz0=-NOPAD
Which phone calls may you record? https://www.dotnews.co.za/Code/Article.aspx?qry=yKPR5eDKNlaukY9Ps7iCg3x2G68IxYIBM66umpQfbx-cXrDVCApCnWA31prdEHOFHplTxffN_bT9OZBuREdW2v8DDOmhQqH-IjRAqUxbnz0=-NOPAD
Ph published a list of trustees’ administrative duties: https://www.phinc.co.za/OurInsights/ArticleDetail.aspx?Title=Trustee-administrative-duties-under-the-spotlight
Another publication by Ph deals with a waiver, by directors, of a claim, by the company they manage; interesting because the judgement distinguished between the non-variation of a contract and an abandonment of rights to enforce payment.
May you publish a person’s cell phone number, together with criticism of his conduct? https://www.cliffedekkerhofmeyr.com/en/news/publications/2024/Sector/Technology/technology-and-communications-alert-18-september-summary-of-the-popia-case-of-munetsi-v-madhuyu-and-another
Transfer pricing is a topic few of us would willingly engage in, but, for the few, this article may be interesting: https://www.moneyweb.co.za/mymoney/moneyweb-tax/the-heart-of-transfer-pricing-tested-for-the-first-time-in-sa-courts/
Similarly, the taxation of trusts and the taxation flow-through principle is not common knowledge amongst practitioners, but is very relevant when you start a trust: https://www.moneyweb.co.za/mymoney/moneyweb-tax/clarity-for-trusts-and-beneficiaries-on-taxation-of-distributions/
SARS is on the hook for the hacking of a SARS eFiling profile, as it is being sued by two brothers for R900m.
BEE and the profession: larger firms especially should note the new sector codes and could benefit from looking at the following: https://serr.co.za/the-new-legal-sector-b-bbee-codes-transforming-the-legal-landscape See also https://stbb.co.za/pulse-transforming-the-legal-industry-government-approves-the-b-bbee-legal-sector-code/
The Magistrate’s Court and High Court tariffs were increased with effect from 20 September.
Hard News
Whilst not of direct interest to practitioners, members of the public should note that there are easier and cheaper ways to divorce if your divorce is reasonably amicable: https://stbb.co.za/online-divorce/
Can you claim maintenance on behalf of your adult dependent child? Yes: https://www.saflii.org/za/cases/ZASCA/2022/113.pdf
Prescription and claims on behalf of major children: https://legalbrief.co.za/media/filestore/2024/10/Rensburg_and_Another_v_Cilliers.pdf
How does one determine who the beneficial owner of an entity is? This https://www.fic.gov.za/wp-content/uploads/2024/08/PCC-59-Beneficial-ownership.pdf
Conveyancing
Property ownership is virtually inviolate. When you buy into a life right retirement scheme this is not so: https://www.saflii.org/za/cases/ZASCA/2024/125.html
The Durban Master has migrated to a new datacentre.
Sales in execution and sales for less than the property value; conduct of the claimant consistent with an agreement to reinstatement of the bond agreement: https://stbb.co.za/all-about-property-high-court-reverses-property-sale-and-orders-the-deeds-office-to-revive-durban-womans-title-deed/
Can you amend the marital status of a person in terms of section 4.1.b? Yes: https://www.tech4law.co.za/business/conveyancing-in-south-africa/amendment-of-an-error-in-the-vesting-clause-of-a-deed-conveyancing-news/
Be wary of customary marriages, which have not been registered, as non-registration does not necessarily invalidate such marriages: https://www.derebus.org.za/the-legal-implications-of-unregistered-customary-marriages-on-the-acquisition-of-immovable-property-a-conveyancing-perspective/
Property
Trends
Our GNU has targeted a growth rate of 3.3% by the end of next year. This is substantially more than the rate most economists and, the IMF, predicts but, bluntly, it is the first time in many years that there seems to be some application by government towards economic growth.
Residential property prices are rebounding, having reached a national average of 4.7% in July, up from 2.4% a year ago. Despite this, it is still a buyers’ market in the sense that house prices become steadily cheaper at below-inflation price rises.
The office property market is improving, partly owing to a shortage of stock. Redefine says that the office vacancy rate has decreased steadily.
The retail property market has seen an increase in positive sentiment, compared to the second quarter of this year.
Residential rentals are up slightly, according to TPN, but that entity says that vacancy rates have increased across all provinces and rental bands. Having said that, the first of this year reflected a below average (since 2016) annual national residential vacancy rate, coming in at 5.57%, down from 17.21% in the previous year.
Investors in shopping centres should consider looking at the CLUR Shopping Centre Index which gives interesting graphs on trading densities and headline performances of shopping centres.
The intended release by Transnet of non-core properties, might well impact on our property market. Apparently, this includes some 5300 houses and about 3000 other properties!
Finally, real estate stocks were up some 24%, on the beginning of the year figures, last month. With the expected interest rate cuts expectations further growth is probable.
News
The new SAPOA head says that his mission, before his term expires, is to promote South Africa as a property investment destination. Let’s hope this materialises.
A Moneyweb note in September, held that the PPRA has quietly ditched its plan requiring BEE for fidelity fund certificates. Great!
Beware of fraudsters presenting themselves as legitimate estate agents, in order to secure deposits for on -line rental properties. Apparently, such contacts are primarily by way of email and messaging.
The Ekurhuleni water crisis sparked my interest in services and the maintenance of infrastructure by municipal authorities.
Our Minister had said that our municipalities lose 40 % and 80% of water supplied, owing to the non-maintenance of infrastructure. Interestingly, prior to cadre deployment, losses were about half this.
Simultaneously, reports hold that some 40% of electricity meters, in major centres, malfunction.
The result of all this is that municipal services are not what they used to be, and a very real possibility exists of our running out of, especially, water. We have yet to see the promise of heads rolling, for non-performance by any municipality, of its duty to maintain infrastructure.
Many sales contracts contain a clause which says that the purchaser may abandon/waiver its/his right to obtain a bond. This can go wrong: https://blog.jjsinc.co.za/2024/08/27/waiving-the-bond-clause-to-keep-a-sale-alive-risk-versus-reward/
When buying sectional property, you must ensure that you take transfer of any exclusive use area attached to that property. Such areas are quite often not dealt with during transfer as the agent fails to include that area in the contract of sale and the conveyancer fails to properly search the property, owned by the Seller: https://www.phinc.co.za/OurInsights/ArticleDetail.aspx?Title=Exclusive-use-areas-Is-your-new-space-truly-yours?–
Whilst on this topic, do check for unauthorised alterations to EUAs: https://www.paddocks.co.za/paddocks-press-newsletter/common-problems-with-euas/
Shakakraal will see a new affordable housing development worth R10bn. At the same time Club Med is building its first resort in South Africa at Tinley Manor.
How does one deal with a problem neighbour in a sectional scheme: this https://blog.jjsinc.co.za/2024/09/25/three-ways-to-protect-yourself-from-the-nightmare-neighbour-in-your-complex/
Legal stuff
HOA rules, specifying a penalty for late building, is binding: https://stbb.co.za/wp-content/uploads/2024/09/stbb_plu20-2024-s2.pdf
Commission due to an agent, assisting a developer to obtain financing, is not a financial service in terms of the FAIS Act and therefore commission may be charged: https://stbb.co.za/wp-content/uploads/2024/09/stbb_plu20-2024-s1.pdf
A recent SCA judgement, on life rights in a retirement housing scheme, emphasises that your claim is only as good as the financial status of the developer: https://www.moneyweb.co.za/investing/property/protection-of-those-who-buy-life-rights-in-retirement-developments-thrown-into-doubt-by-sca-judgment/
LUPO: https://stbb.co.za/all-about-property-split-zoning-and-clerical-errors-a-summary-of-cape-estate-properties-pty-ltd-v-george-local-municipality/
Lighten up
Q: How many estate agents does it take to change a lightbulb?
A: None! “The lightbulb is in excellent working order and comprised of a beautiful retro teardrop illuminator, offering original glass and metal features and located very centrally in the middle of the room. Local amenities abound and the property is serviced by a newly refurbished power cord connecting it to the ceiling. Nearby is a tasteful power switch to enable the purchaser to switch it on and off. Leasehold with share of power supply with lovingly improved wattage by the current owners. Would suit a professional couple or family looking for more light.”
“I’m getting married to a top-producing estate agent tomorrow. He’s so dreamy. Check out the diamond engagement ring he sold me.”
Two friends were walking through a cemetery when they came across a headstone that read:
this “Here lies Walter Smith, an estate agent and an honest man”
“Blimey,” said one friend to the other: “They buried two people in here,”