'Cover clause' on mortgage bond explained
Rawson - South Africa
When an applicant is awarded a mortgage bond, the bank will automatically register it with, on average, an additional 20% 'cover clause' over and above the original loan amount applied for and granted. For example, a R1 million loan will be registered with a R1,2 million bond.
This R200,000 'cover' amount, says Mike van Alphen, National Manager of the Rawson Property Group's bond origination division, Rawson Finance, can cause dismay and alarm among bond applicants because they think that they are being given - and will be charged interest on - a sum larger than they need or asked for.
This is a misconception, says van Alphen, and it is definitely not the case."The extra 'cover' is not for the client's use, nor is he charged interest on this extra amount," says van Alphen.
So what purpose does the extra 'cover clause' serve?
Rawson Finance Press Release
The Property Market: not flying but neither is it flat
Leapfrog - South Africa
In 2012, property economist Erwin Roode made a few waves with his statement that property prices were overvalued by at least 25 percent.
At the time a number of those associated with the industry objected to his appraisal with John Loos, FNB home loans strategist, believing that Rode was not using the most accurate period from which to make his deductions. Loos reasoned that Rode based his assessment over a 44 year period from 1967 to 2011 but that it would be more accurate to valuate properties from 1995 onwards due to the political shifts that preceded it.
“The issue I had, and still have, with Rode’s statement then is that property values will always increase over time. There is a scarcity of land and, as Mark Twain said; ‘they’re not making any more’. If one takes a long term perspective, property is an appreciating asset”, believes Jan le Roux, CEO of Leapfrog Property Group.
Judge cuts R1.8m transfer bill to R50
The Citizen - South Africa
The developers of an upmarket estate in the East of Pretoria obtained a court order forcing the Tshwane metro council to issue a clearance certificate for a property transfer for a payment of R50.40, instead of the R1.8 million the council
Judge Bill Prinsloo granted the order to Mooikloof Estate following an urgent application launched in a desperate effort to sort out a dispute with the council which threatened to derail numerous sales transactions. Mooikloof developed a new security estate called Summer Place while the area still fell under the Kungwini municipality.
Kungwini initially did levy and property taxes on the separate stands not yet transferred, but billed Mooikloof for the remainder of the property not yet sold, despite providing no services to the area.
Electric fencing certificates, an additional requirement when selling immovable property
Polity - South Africa
When selling residential properties, property owners must not only provide electric compliance certificates for the house electrics, but should also provide an electric fence compliance certificate if the fence was erected from December 2012.
The recent changes to the Electrical Machinery Regulations, place a duty on every user of an electric fencing system, to obtain an electric fence compliance certificate.
These regulations do not apply to electric fence systems which were erected prior to 1 December 2012 except when any additions, energizer changed or alterations are effected to the existing electric fencing systems to that date.
Tenant 'has right to sub-lease a property '
IolProperty - South Africa
According to the Rental Housing Act, a landlord is "the owner of a dwelling which is leased and includes his or her duly authorised agent or a person who is in lawful possession of a dwelling and has the right to lease or sub-lease it".
We can divide this definition into two parts:
(a) The first part of the definition simply means what it says - "the owner of a dwelling which is leased and includes his or her duly authorised agent".
The landlord is the owner who himself enters into a lease with a tenant.
A person who concludes a lease on behalf of the owner (duly authorised agent) or performs any act on behalf of the landlord based on the lease.
(b) An explanation is necessary for the second part of the definition, which states: "or a person who is in lawful possession of a dwelling and has the right to lease or sublease it".