Dear {{contact.first_name}}
October has been a rather uneventful property month.
I've been spending quite a bit with our new Gauteng property team to get everything in order and manage the reality on the ground in the city of gold.
With the sad ending to the Kolisi's marriage grabbing headlines locally and a long list of election shenanigans in the USA keeping us nervously amused as we ponder the future of democracy and humanity in the not-so-steady hands of current world leaders. ( Human for now)
On the property front, it has been a time to get your ducks in order. With risk management a hot topic at the moment considering the nature of new risks such as climate change, stricter regulations, economic volatility and the impact of existing and potential wars and global tensions continuing to loom large.
With that in mind, I decided to do a quick guide to risk management for property buyers/ landlords and owners this month.
Property Compliance in South Africa: A Quick Guide to help you tick all the boxes.
When buying, selling, or owning property in South Africa, it's essential to be aware of various compliance requirements.
Here are some key areas to consider:
For Buyers and Sellers:
Property Practitioners Act: Ensure your real estate agent is registered and adheres to ethical practices.
Transfer Duty: Understand the applicable transfer duty fees, which vary based on the property's value.
Electrical Compliance Certificate (ECC): Verify the safety of electrical installations.
Water Installation Compliance Certificate: Ensure compliance with water regulations, especially in water-scarce areas.
Gas Compliance Certificate: If applicable, check for gas appliance safety.
Beetle Inspection Certificate: Mandatory in certain areas to confirm the absence of wood-boring beetles.
For Owners:
Rates and Taxes: Pay property taxes and levies on time to avoid penalties.
Check your property's classification with water and electricity suppliers to ensure the billing of your services is on the correct scale, especially for multi-tenant properties.
Sectional Title Schemes: Adhere to body corporate rules and regulations.
Ensure you have copies of the Sectional title plans, latest financials, AGM minutes and Insurance.
Rental Housing Act: If you're a landlord, comply with tenant rights, maintenance obligations, and deposit regulations.
Building Regulations: Obtain necessary plan approvals for renovations or additions.
Fire Safety Compliance: Install and maintain smoke detectors and fire extinguishers.
Electrical and Gas Safety: Regularly inspect and maintain these systems COCs should be renewed every 2 years.
Environmental Regulations: Adhere to environmental laws and regulations.
Service equipment like air conditioners, elevator plans, pool pumps etc annually.
Lease agreements must always be up to date and compliant with regular renewals.
Inspections need to be done for all tenants, Incoming and Outgoing.
When dealing with legal entities:
- Ensure FICA for all parties
- Resolutions ensure the validity of agreements
- Sign separate surety agreement
Professional Advice:
To ensure full compliance and avoid legal issues, consult with a real estate agent or property lawyer. They can provide tailored advice and help you navigate the complexities of property law in South Africa.
The key is to focus on what directly affects you and those around you and stay aware of the big picture build your go-to team of professionals, plan and get expert advice before you make a big move.
Don't forget to plan your Black November shopping spree!
We have our own Black November specials running to help put cash back in your pocket!
Get in touch, we look forward to guiding you along your property journey.
Yours in property
Jacques Grove
Principal and Dreamer
