Property 24/10 - 300

Who is responsible for outgoing contractor defects?
When it comes to construction contracts, it is not uncommon for a contractor to be replaced with an alternative contractor prior to completion of the works according to Director Adine Abro and Senior Associate Muhammed Somrey from Cliffe Dekker Hofmeyr's Dispute Resolution Practice, who say should an employer require that the incoming contractor assume responsibility for remedying defects or damages caused by an outgoing contractor, it would be prudent for the employer to ensure that this is expressly stated in the agreement.

They say failure to do so, as can be seen from the case of Trencon Construction (Pty) Ltd v South African Airways (Pty) Ltd and another [2015] JOL 33366 (GJ), may result in the employer being left wanting.

Graduates - want to start a career in property?
Applications are open for the 2017 JLL and Tétris South Africa Graduate Programme. The scheme provides graduates with the opportunity to learn from specialised property-related disciplines in the business, allowing them to obtain real property experience according Craig Hean, MD of JLL South Africa, who says JLL and Tétris recruit, train and retain the highest calibre of graduates, challenging them to develop enduring client relationships built on quality service, collaboration and trust.

With a wide range of service lines to explore and a wealth of expertise in house, Hean says interns are exposed to all of the technical, business and professional skills they need to shape and develop a meaningful career in professional property services.

Billions being invested in Cape Town's CBD
Published for four years now by the Cape Town Central City Improvement District (CCID), The State of Cape Town Central City Report details more than R8 billion of new investment to be made into South Africa’s oldest downtown within the next five years. It provides analysis on the major sectors that are influencing growth in the CBD, from the rollout of accessible and affordable broadband in a pilot project being championed by the City of Cape Town, to the CBD’s ever-increasing night-time economy and residential desirability.

Rob Kane, chairperson of the CCID, says the public and private sectors play a huge collaborative role in driving this economy to succeed, which is evidenced in the billions of rands that have come into the area in both buildings and infrastructure.

As a result, he says they’ve seen the value of property rise from R6.127 billion around 2005 to well over R24 billion in just over a decade, and conservatively this is expected to be well over R32 billion within five years.

Will buying property off plan save you money?
Buying a home “off plan” or directly from the developer has many benefits for first-time buyers and others without large sums of cash for transfer duties and various other transaction costs, but there are some challenges involved too.

Shaun Rademeyer, CEO of BetterLife Home Loans, national mortgage originator, says one of the most appealing aspects of buying an off-plan or newly-built home is that tax is built into the sales price in the form of VAT.

“For anyone buying a property priced at more than R750 000, this means a considerable saving when it comes to upfront expenses, as there is no transfer duty payable,” says Rademeyer.

Four home selling misconceptions debunked
When it comes to selling a home there is no shortage of advice from a number of sources, such as family and friends. However, being given a lot of information doesn’t necessarily mean that it is the right information.

According to Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, receiving advice and information from so many different sources can lead to uncertainty about certain key aspects of the property sales transaction.

He says in today’s age of technology there is a vast amount of information at a consumer’s fingertips, but having access to information and determining what can be trusted are two very different things entirely.

“It is not always easy to determine what information and advice should be held onto and what to ignore. As a result there are several misconceptions that have made their way into the marketplace,” says Goslett.

Tips for buying a property on auction
Buying a home on auction can be an alternative way of becoming a homeowner. However, these properties need thorough inspection and a good understanding of the risks and costs prior to bidding, as well as the responsibilities when a bid is accepted.

“Properties sold on auction have ended up there for various reasons, either the customer has defaulted, or it is a deceased estate where the surviving relatives were unable to take over the bond, or the customer is sequestrated, which is court ordered,” says Dr Simphiwe Madikizela, head of projects at FNB Housing Finance.

Dr Madikizela says the sale is conducted through a Sheriff of the court at a public sale in execution. The Sheriff is appointed by the courts to act within specific areas or regions and is considered an unbiased party between the execution debtor and successful bidder.

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