What role do homeowners’ associations play in shared developments?
Homeowners’ Associations (HOAs) are a critical component of shared developments in South Africa, managing everything from noise levels to pet policies. While they offer many benefits, the legal framework surrounding HOAs can be complex, involving legislation such as the Sectional Titles Schemes Management Act of 2011. In addition to managing disputes and enforcing rules, HOAs […]
Property ownership transfer and the abstract theory
South African courts have adopted the abstract theory, which means that the validity of transferring ownership is not affected by whether the original transaction is valid. In the case of Legator McKenna Inc. v Shea [2009] 2 All SA 45 (SCA), McKenna, an attorney, was appointed as the curator of Mrs Shea’s estate because she […]
Renting vs buying: The pros and cons
In a lowering interest environment, tenants are reconsidering their priorities. Driven by reduced interest rates and more lenient loan criteria, tenants are starting to have their sights firmly set on owning a home. While many particularly the ‘millennial generation’ chose to travel and live more ‘freely’ in the past, priorities have since changed. The pressing […]
Claiming Ownership Through Acquisitive Prescription
One way to acquire property in South Africa is through acquisitive prescription. This method does not rely on the transfer of rights from a predecessor in title; instead, it acknowledges specific factual criteria that, when met, grant legal rights and title to ownership. This article will outline the requirements necessary for successfully claiming ownership through […]
Why a Home Loan Prequalification Matters
So you’ve been looking to buy your dream home, and you’ve seen something for sale that grabs your fancy. Now imagine yourself walking through the front door carrying a suitcase filled with cash. You’ll certainly get the buyer’s attention, won’t you? Of course, not many people are in the fortunate position of being able to […]
Understanding homeowners associations (HOAs)
If you are considering buying a property in a housing development, it’s essential to understand what a Homeowners Association (HOA) is and how it operates. HOAs are legal entities responsible for managing and regulating housing development schemes. Although homeowners own their individual properties, the HOA maintains and oversees communal infrastructure, such as roads, security systems, […]
Are you obligated to pay arrear levies when purchasing a Sectional Title Unit? Part 1
Recently, the High Court and the Supreme Court of Appeal (SCA) was required to interpret Section 15B(3)(a)(i)(aa) of the Sectional Titles Act 95 of 1986 in relation to a sale in execution in the case of the Body Corporate of Marsh Rose v Arno Steinmuller and others. The Sectional Titles Act 95 of 1986 stipulates […]
Tenant ‘Red Flags’ and how to avoid them
The wrong tenant can have a lasting negative effect. The residential property industry continues its upward trajectory, and investors are getting in on the action. However, with the rise of investors choosing to take advantage of low prices and invest in ‘buy-to-let’ properties comes an excess supply of rental properties in areas with high supply […]
Are you using your residential property for an unauthorised or illegal purpose?
Residential homeowners must be aware of the judgment handed down by the Supreme Court of Appeal (SCA) in the case of the City of Johannesburg Metropolitan Municipality v Zibi (234/2020) [2021] ZASCA 97 (9 July 2021). The outcome of this case carries significant implications for residential homeowners who utilise their homes for commercial purposes without […]
Understanding mortgage bond cancellation: Key steps and considerations
In South Africa, the process of cancelling a mortgage bond is commonly necessitated when a property is sold or the bond is fully paid off. This procedure is intricate, consisting of several critical steps: Step 1: Notice of cancellation Initially, the property owner must submit a written notice of intent to cancel the bond to […]