Marite Property Management

Geyser Replacement Limit Increase

In line with escalating geyser replacement costs we are pleased to advise that effective from 1 st March 2010 the limits under our Sectional Title policies will be increased as follows:

100lt from R5,000 to R5,200
150lt from R5,200 to R5,500
200lt from R6,700 to R7,100
250lt from R9,300 to R10,000
The limit of R1,000 in respect of geyser repairs will remain as is.

Be Pro-Active...

The volume and cost of geyser claims has a major influence on the formulation and calculation of premiums.

Nasty surprises, inconvenience and potential catastrophic resultant damage can be avoided if geysers are serviced regularly. A major supplier of geysers recommends that this be done every 3 to 4 years where the water supply is of a good quality and every second year where the water supply is of a bad quality (hard water).

It pays to be pro-active. Servicing and maintaining a geyser may well result in a premium saving.

Again, please ensure this Newsletter is circulated to all your staff, policyholders and managing agents.

With regards from

André, Georgie and the CIA Team

Your suggestions toward improved product or service are welcomed by the CIA Management Team and should be forwarded to jhb@cia.co.za for consideration.

Produced by BRITS DREYER ATTORNEYS

So you have finally managed to work your way through the concrete jungle and found your dream house? Congratulations. With the Deed of Sale still hot on the table you are about to be introduced to the term conveyancing. With a series of commonly asked questions and answers we will endeavour to explain this process in an informative manner.

What is conveyancing?

In South Africa immovable property is transferred through a process of registration in the Deeds Office. Conveyancing is the term encompassing the process in terms of which ownership of immovable property is transferred from the Seller to the Buyer through registration in the Deeds Office. Conveyancing is reserved for attorneys and in practice the Seller nominates the attorney to be entrusted with transferring his/her property.

What is the relevance of the Deed of Sale?

In accordance with legislation the sale of immovable property must be reduced to writing. The Deed of Sale forms the blue print of the conveyancer’s instructions and he/she is responsible to ensure compliance with every term and condition thereof prior to effecting registration of transfer.

Who is involved apart from the parties to the Deed of Sale?

Apart from the Seller and the Purchaser, various other parties is involved prior to transfer being effected, each contributing to compliance with terms of the Deed of Sale and statutory requirements, consequently resulting in title and ownership being transferred to the Purchaser. We will briefly elaborate on the steps taken by the conveyancer during the process:

· Deeds Search: The conveyancer, on receipt of a Deed of Sale, conducts a search in the Deeds Office to ensure the Seller has the necessary Title to the immovable property. In addition the search will reveal the particulars of any existing bondholders and whether the property is subject to judicial attachment.

· Cancellation of Bonds: Prior to a property being transferred existing mortgage debts must be settled in full. The conveyancer will liaise with the bondholder who in turn will instruct another conveyancer to represent its interest in conducting the cancellation of the bond. The bondholder holds the Title Deed to the Seller’s property in security and such Title Deed must be produced prior to registration of the property, whereafter it would, following registration, be replaced by a new Title Deed in favour of the Purchaser. Without the Seller’s Title Deed the property cannot be transferred. It is of utmost importance that the Deed of Sale contains the particulars of the Seller’s bond account number since the financial institutions conduct their filing with reference thereto.

· Municipality: The municipality is requested to provide a valuation certificate reflecting the municipal value of the property which in turn is utilized to convince SARS that the property has been sold for value, negating donations tax being invoked. In addition the municipality requires that all rates and service charges be paid up, which ensures that the Purchaser acquires a new account. It is also practice that the rates in relation to the immovable property is paid in advance until 30 June, signifying the end of the Municipality’s financial year. The conveyancer will apportion the prepaid rates between the Seller and the Purchaser with reference to the occupation date, the risk clause in the Deed of Sale or the date of registration. Upon receipt of payment the Municipality will issue a Rates Clearance Certificate without which registration cannot be effected. If the immovable property is a sectional title unit then correspondence is addressed to the Body Corporate who will issue a similar certificate in relation to the monthly levies payable.

· SARS: In accordance with the provisions of the Transfer Duty Act, every transfer of immovable property is subject to transfer duties being paid. Transfer duties is calculated based on the purchase price and amounts to exemption for the first R500,000.00, 5% for the next R500,000.00, thus up to R1 million, plus 8% of the balance in excess thereof. The conveyancer must effect payment of the Transfer Duty and obtain a receipt prior to being able to register. Visit our website's cost calculator for convenient calculation: www.britsdreyer.co.za

· Home Owners Associations (HOA): Following the introduction of cluster housing and security complexes, in order to ensure that the new owner subscribes to the rules and constitution of the HOA, it is common to find a condition in such a property’s Title Deed that the HOA consent is required in order to effect transfer. The HOA or its managing agent will provide such consent against payment and in addition ensure that all outstanding levies are settled by the Seller prior to transfer.

· Financing the Purchaser (Bond): Very few people can afford to buy an immovable property in cash and accordingly financial institutions provide assistance in order to facilitate registration. A Seller will not agree to registration unless he is paid the purchase price whilst a financial institution will not release funds in favour of the Purchaser unless a bond is registered in their favour over the property on the day it is registered in the name of the Purchaser. A financial institution will instruct a bond conveyancer to represent its interest in ensuring that no payment is made prior to a bond being registered. The respective needs of the parties referred to hereinabove must be synchronized by the transfer conveyancer in order to ensure that they occur simultaneous.

· Drafting of Documents: The conveyancer will draft the documents necessary to procure the registration of transfer comprising of a Power of Attorney, New Title Deed for the Purchaser, Various affidavits to be signed by the parties confirming their particulars in regard to names, id, marital and solvency status, Declarations to SARS re purchase price.

· Lodging: Once all the aforementioned documents has been produced, delivered and or received the transfer conveyancer will liase with the bond and cancellation conveyancer in order to arrange for the documents to be simultaneously lodged at the Deeds Office. It is important to note that the same conveyancer can fulfill the respective functions of transfer, bond and cancellation conveyancer, but that same remain separate transactions and distinct functions.

· Registration: After about 7 to 10 working days following lodgement, and once the Deeds Office has been satisfied that all statutory requirements has been met, the conveyancers will be notified that they may proceed with registration for a period of 5 days (termed “ up for registration”). If the Deeds Office is not satisfied, the documents would be rejected with a request that the conveyancer must rectify the concerns. Although a rejection can be attributed to a conveyancer this is not always the case. Once notified, the transfer conveyancer will ensure that all the conditions in the Deed of Sale has been met, whereafter he will liase with the bond conveyancer to establish whether the financial institution is ready to release the funds and with the cancellation conveyancer to obtain a settlement amount for the Seller’s bond. Once all the parties are ready he will nominate and arrange the next suitable day for registration on which day the Seller’s bond will be settled, a new Title Deed would be registered in favour of the Purchaser, a bond be endorsed on the new Title Deed in favour of the financial institution and the Purchaser will become owner. If registration does not take place within the 5 days then documents must be relodged resulting in a delay of 10 working days.

How long does this take?

In practice the process of registration takes between 6 to 8 weeks. With reference to the number of parties, especially government organizations, involved it should be noted that completion of the conveyancing process is reliant on the cooperation of the respective parties each of whom, due to service levels or outstanding requirements can cause this to be longer or in some exceptional instances shorter.

What am I signing?

The conveyancer will contact you for an appointment so that you can sign documents in order to facilitate the transfer. These documents are:

· SARS declarations: Both the Seller and the Purchaser must sign a declaration confirming the actual purchase price and the absence of any private agreements deflating same or the existence of barter transactions. These documents are required in order to obtain a Transfer Duty receipt from SARS and is necessitated due to the Transfer Duties being calculated as percentage of the purchase price.

· Personal Affidavits: Both the Seller and the Purchaser sign affidavits confirming their personal particulars, id numbers, marital and solvency status. This is to enable the conveyancer to ensure compliance with lnsolvency and Maritial Property legislation.

· Power of Attorney: This document is only signed by the Seller. The Seller appoints the conveyancer to appear on his behalf during the registration at the Deeds Office and to transfer the immovable property to the Purchaser.

What am I paying?

Unless provided for to the contrary the Purchaser is responsible the payment of the transferring conveyancer. The costs consist of (1) the Conveyancer’s fee plus a nominal amount for Disbursements (ex VAT), (2) Transfer duties due to SARS and (3) an Administration Fee for the Deeds Office. All the aforementioned fees are prescribed by law and a conveyancer may not charge more or for that matter less. In practice conveyancers are willing to discuss a reduction of their fees especially if a Purchaser is willing to refer the registration of the Bond, which will avoid the introduction of another bond conveyancer. If the transaction is financed by a bond, the Purchaser will in addition receive a separate account from the Bond conveyancer in respect of the registration of the bond. The Seller will pay the Bond cancellation conveyancer’s fees.

When must I pay?

The transfer conveyancer must effect payment of the outstanding rates to the municipality and the transfer duties to SARS in order to obtain receipts. In practice the conveyancer will request these amounts about 1 month before the anticipated day of registration.

Username : Password :	Geyser Replacement Limit Increase In line with escalating geyser replacement costs we are pleased to advise that effective from 1 st March 2010 the limits under our Sectional Title policies will be increased as follows: 100lt from R5,000 to R5,200 150lt from R5,200 to R5,500 200lt from R6,700 to R7,100 250lt from R9,300 to R10,000 The limit of R1,000 in respect of geyser repairs will remain as is. Be Pro-Active... The volume and cost of geyser claims has a major influence on the formulation and calculation of premiums. Nasty surprises, inconvenience and potential catastrophic resultant damage can be avoided if geysers are serviced regularly. A major supplier of geysers recommends that this be done every 3 to 4 years where the water supply is of a good quality and every second year where the water supply is of a bad quality (hard water). It pays to be pro-active. Servicing and maintaining a geyser may well result in a premium saving. Again, please ensure this Newsletter is circulated to all your staff, policyholders and managing agents. With regards from André, Georgie and the CIA Team Your suggestions toward improved product or service are welcomed by the CIA Management Team and should be forwarded to jhb@cia.co.za for consideration. Produced by BRITS DREYER ATTORNEYS So you have finally managed to work your way through the concrete jungle and found your dream house? Congratulations. With the Deed of Sale still hot on the table you are about to be introduced to the term conveyancing. With a series of commonly asked questions and answers we will endeavour to explain this process in an informative manner. *What is conveyancing?* In South Africa immovable property is transferred through a process of registration in the Deeds Office. Conveyancing is the term encompassing the process in terms of which ownership of immovable property is transferred from the Seller to the Buyer through registration in the Deeds Office. Conveyancing is reserved for attorneys and in practice the Seller nominates the attorney to be entrusted with transferring his/her property. *What is the relevance of the Deed of Sale?* In accordance with legislation the sale of immovable property must be reduced to writing. The Deed of Sale forms the blue print of the conveyancer’s instructions and he/she is responsible to ensure compliance with every term and condition thereof prior to effecting registration of transfer. *Who is involved apart from the parties to the Deed of Sale?* Apart from the Seller and the Purchaser, various other parties is involved prior to transfer being effected, each contributing to compliance with terms of the Deed of Sale and statutory requirements, consequently resulting in title and ownership being transferred to the Purchaser. We will briefly elaborate on the steps taken by the conveyancer during the process: · *Deeds Search: The conveyancer, on receipt of a Deed of Sale, conducts a search in the Deeds Office to ensure the Seller has the necessary Title to the immovable property. In addition the search will reveal the particulars of any existing bondholders and whether the property is subject to judicial attachment. · Cancellation of Bonds:* Prior to a property being transferred existing mortgage debts must be settled in full. The conveyancer will liaise with the bondholder who in turn will instruct another conveyancer to represent its interest in conducting the cancellation of the bond. The bondholder holds the Title Deed to the Seller’s property in security and such Title Deed must be produced prior to registration of the property, whereafter it would, following registration, be replaced by a new Title Deed in favour of the Purchaser. Without the Seller’s Title Deed the property cannot be transferred. It is of utmost importance that the Deed of Sale contains the particulars of the Seller’s bond account number since the financial institutions conduct their filing with reference thereto. · *Municipality:* The municipality is requested to provide a valuation certificate reflecting the municipal value of the property which in turn is utilized to convince SARS that the property has been sold for value, negating donations tax being invoked. In addition the municipality requires that all rates and service charges be paid up, which ensures that the Purchaser acquires a new account. It is also practice that the rates in relation to the immovable property is paid in advance until 30 June, signifying the end of the Municipality’s financial year. The conveyancer will apportion the prepaid rates between the Seller and the Purchaser with reference to the occupation date, the risk clause in the Deed of Sale or the date of registration. Upon receipt of payment the Municipality will issue a Rates Clearance Certificate without which registration cannot be effected. If the immovable property is a sectional title unit then correspondence is addressed to the Body Corporate who will issue a similar certificate in relation to the monthly levies payable. · *SARS:* In accordance with the provisions of the Transfer Duty Act, every transfer of immovable property is subject to transfer duties being paid. Transfer duties is calculated based on the purchase price and amounts to exemption for the first R500,000.00, 5% for the next R500,000.00, thus up to R1 million, plus 8% of the balance in excess thereof. The conveyancer must effect payment of the Transfer Duty and obtain a receipt prior to being able to register. Visit our website's cost calculator for convenient calculation: www.britsdreyer.co.za · *Home Owners Associations (HOA):* Following the introduction of cluster housing and security complexes, in order to ensure that the new owner subscribes to the rules and constitution of the HOA, it is common to find a condition in such a property’s Title Deed that the HOA consent is required in order to effect transfer. The HOA or its managing agent will provide such consent against payment and in addition ensure that all outstanding levies are settled by the Seller prior to transfer. · *Financing the Purchaser (Bond):* Very few people can afford to buy an immovable property in cash and accordingly financial institutions provide assistance in order to facilitate registration. A Seller will not agree to registration unless he is paid the purchase price whilst a financial institution will not release funds in favour of the Purchaser unless a bond is registered in their favour over the property on the day it is registered in the name of the Purchaser. A financial institution will instruct a bond conveyancer to represent its interest in ensuring that no payment is made prior to a bond being registered. The respective needs of the parties referred to hereinabove must be synchronized by the transfer conveyancer in order to ensure that they occur simultaneous. · *Drafting of Documents:* The conveyancer will draft the documents necessary to procure the registration of transfer comprising of a Power of Attorney, New Title Deed for the Purchaser, Various affidavits to be signed by the parties confirming their particulars in regard to names, id, marital and solvency status, Declarations to SARS re purchase price. · *Lodging:* Once all the aforementioned documents has been produced, delivered and or received the transfer conveyancer will liase with the bond and cancellation conveyancer in order to arrange for the documents to be simultaneously lodged at the Deeds Office. It is important to note that the same conveyancer can fulfill the respective functions of transfer, bond and cancellation conveyancer, but that same remain separate transactions and distinct functions. · *Registration:* After about 7 to 10 working days following lodgement, and once the Deeds Office has been satisfied that all statutory requirements has been met, the conveyancers will be notified that they may proceed with registration for a period of 5 days (termed “ up for registration”). If the Deeds Office is not satisfied, the documents would be rejected with a request that the conveyancer must rectify the concerns. Although a rejection can be attributed to a conveyancer this is not always the case. Once notified, the transfer conveyancer will ensure that all the conditions in the Deed of Sale has been met, whereafter he will liase with the bond conveyancer to establish whether the financial institution is ready to release the funds and with the cancellation conveyancer to obtain a settlement amount for the Seller’s bond. Once all the parties are ready he will nominate and arrange the next suitable day for registration on which day the Seller’s bond will be settled, a new Title Deed would be registered in favour of the Purchaser, a bond be endorsed on the new Title Deed in favour of the financial institution and the Purchaser will become owner. If registration does not take place within the 5 days then documents must be relodged resulting in a delay of 10 working days. *How long does this take?* In practice the process of registration takes between 6 to 8 weeks. With reference to the number of parties, especially government organizations, involved it should be noted that completion of the conveyancing process is reliant on the cooperation of the respective parties each of whom, due to service levels or outstanding requirements can cause this to be longer or in some exceptional instances shorter. *What am I signing?* The conveyancer will contact you for an appointment so that you can sign documents in order to facilitate the transfer. These documents are: · *SARS declarations:* Both the Seller and the Purchaser must sign a declaration confirming the actual purchase price and the absence of any private agreements deflating same or the existence of barter transactions. These documents are required in order to obtain a Transfer Duty receipt from SARS and is necessitated due to the Transfer Duties being calculated as percentage of the purchase price. · *Personal Affidavits:* Both the Seller and the Purchaser sign affidavits confirming their personal particulars, id numbers, marital and solvency status. This is to enable the conveyancer to ensure compliance with lnsolvency and Maritial Property legislation. · *Power of Attorney: This document is only signed by the Seller. The Seller appoints the conveyancer to appear on his behalf during the registration at the Deeds Office and to transfer the immovable property to the Purchaser. What am I paying?* Unless provided for to the contrary the Purchaser is responsible the payment of the transferring conveyancer. The costs consist of (1) the Conveyancer’s fee plus a nominal amount for Disbursements (ex VAT), (2) Transfer duties due to SARS and (3) an Administration Fee for the Deeds Office. All the aforementioned fees are prescribed by law and a conveyancer may not charge more or for that matter less. In practice conveyancers are willing to discuss a reduction of their fees especially if a Purchaser is willing to refer the registration of the Bond, which will avoid the introduction of another bond conveyancer. If the transaction is financed by a bond, the Purchaser will in addition receive a separate account from the Bond conveyancer in respect of the registration of the bond. The Seller will pay the Bond cancellation conveyancer’s fees. *When must I pay?* The transfer conveyancer must effect payment of the outstanding rates to the municipality and the transfer duties to SARS in order to obtain receipts. In practice the conveyancer will request these amounts about 1 month before the anticipated day of registration.