Property 24/10 - 518

SA arrears rates deep dive as more luxury and lower-end rental properties stand empty
Financial pressure caused by the Covid-19 lockdown continues to impact the South African rental market, as the slow deterioration of tenants able to pay their rent on time hits a deep dive.

The steady deterioration of 5.43% over the last 6 years is hardly noticeable in comparison to the overnight drop to 50% in good standing in a single month between March and April, according to rental monitor data from TPN Credit Bureau.

TPN Managing Director Michelle Dickens says breaking down the quarter into monthly analysis helps to predict the short term trend.

Can the seller or auctioneer bid at an auction?
More and more in South Africa, sellers are turning to auctions, as a ‘fast fix’ to dispose of their immovable properties. One issue that arises often at auctions, is that the seller or auction house has a representative bidding for the property.

Yet, this representative has no intention of buying the property.

Is such conduct legal?
Can the seller or auctioneer or their representative bid at the auction, even though they have no intention of buying the property?

"In terms of the law, the Consumer Protection Act actually allows the seller OR auctioneer to bid, but only if notice is given in advance that the auction is subject to, a reserve price and a right to bid by the seller or auctioneer," says Alan Levy of Alan Levy Attorneys Inc. in Johannesburg.

I've lost my title deed. What do I do now?
After months on the market you have finally sold your house, your purchaser’s bond has been granted and you are ready to start the transfer. Then the Conveyancer asks you for the Title Deed for the property and your heart sinks …. you have no idea where it is.

All is not lost, however, as the Deeds Office Regulations provide for a mechanism whereby you can apply for the issue to you of a certified copy to replace the lost original – Regulation 68(1), advises Natalie Shephard, Director at Denoon Sampson Ndlovu Inc.

Regulation 68(1) allows for an owner to apply to the Registrar of Deeds for the issue of a certified copy of his lost Title Deed. The application takes the form of an affidavit signed in front of a Commissioner of Oaths.

Mortgage Bond vs Home Loan | Two parts of your land asset whole
Because we refer to property related loans as “mortgage bonds”, folk often assume that home loans and mortgage bonds are one and the same. They are not!

"One is the security given to the bank under the mortgage bond agreement and the other is the actual loan obtained. To complicate matters further, they don’t have to be of the same amount and it doesn’t always have to be a mortgage bond that secures the home loan," explains Property Factor's Tess Rodrigues.

The mortgage bond is a legal agreement whereby you, the owner of the property, hand over your rights over the property to the bank in order to secure a loan. This can be either a home loan, an overdraft or a personal loan. You can choose the amount for which you want the mortgage bond agreement to be, as long as it is higher than the loan it secures. Furthermore, you don’t have to “qualify” for and your property doesn’t have to have the value of the amount stipulated in your mortgage bond agreement.

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