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Pretoria, Gauteng Province, South Africa
Property Lawyer & Conveyancer ... Lover of Life in general!! www.prop-law.co.za In this Blog we have always brought you the latest PROPERTY NEWS but now we will also bring you a Q & A SECTION, where we answer readers questions. Please e-mail your questions to gareth@propertylaw.onmicrosoft.com (The information contained in this Blog does NOT constitute legal advice. If you require legal advice, you are very welcome to contact me.)

16 May 2013

EAAB's intern monitoring system almost 'unworkable'

Although I am not an Estate Agent by profession, I do deal with Estate Agents on a daily basis and would be interested to know if Estate Agents share the opinion of Tony Clarke, Managing Director of the Rawson Property Group???

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EAAB's intern monitoring system almost 'unworkable'

The latest figures from South Africa's Estate Agency Affairs Board show that currently only 32,718 estate agents are still working in the formal recognized sector of the industry.

Of these, 10,373 are now fully qualified agency principals, 12,162 are full status (i.e. fully qualified) estate agents and 10,183 are interns learning to become fully fledged agents. Another 47 are attorneys who have chosen to acquire Fidelity Fund Certificates.

Tony Clarke, Managing Director of the Rawson Property Group, stated that it is now law that all new entrants to the estate agency profession, regardless of whatever qualifications they may have, have to be registered with the EAAB as interns and have to be monitored by their principals or by a full status estate agent (one who is fully qualified and has had a Fidelity Fund Certificate for at least three consecutive years) for a period of at least 12 months.

Interns are not allowed to perform any action which could affect the outcome of the sale unless they do so in the presence of and under the supervision of a mentor. All documentation, for example, has to be completed under the mentor's surveillance and any valuation of a property can only be accepted if the mentor has also inspected it. Similarly, any negotiation regarding price and conditions has to be done under the guidance of their mentor.

These rules, said Clarke, are exceptionally difficult to apply because, as the EAAB employment figures above show, there are so few fully qualified estate agents in South Africa and most of them are working long hours to maintain their own turnovers and meet their budgets.

To give an intern the full monitoring required by the EAAB, said Clarke, could mean that the mentor would have to devote as much as half his working time to this task - which only a few qualified estate agents are prepared to do.

"Inevitably, therefore," said Clarke, "estate agents and principals are reluctant to be involved and this will mean that they hold back on taking on interns. These rulings have, therefore, created a barrier to entry into the profession and, along with certain factors, have held back the transformation of our sector."

The rulings, added Clarke, could now result in dishonesty because the busy qualified estate agent, unwilling to hold back the progress of his intern, might sign the required forms testifying that the intern had received his full supervision, when in fact this had been done inadequately in terms of the EAAB rulings.

"The intern rulings, in my view, show that the EAAB is out of touch with how agencies and estate agents work," said Clarke. "I fear that they will encourage mentoring estate agents to act in a way that, although helpful to their protégées, is not strictly in line with the rules."

Another intern stipulation which has proved to be difficult to apply, said Clarke, is that which lays down that the intern has to inform any person who he is involved with in a property matter - especially his clients - that in fact he or she is still an intern.

"Although there will always be exceptions, the majority of clients, we have found, object to this and prefer to deal with a qualified estate agent, thereby denying the intern the opportunity to get the necessary experience. It has to be said that while no one wishes to deceive the client, the ruling about disclosing the intern's status is, in our view unnecessary, and, it can be added, the chances of a previously disadvantaged intern being fully accepted by clients will always be fairly low."

Another 'issue' that most estate agents find irksome, said Clarke, is the fact that the intern is expected to keep an onerous logbook of all his work activities and this again has to be approved and signed off by the mentor.

"The plain truth is that the EAAB board will never have the staff or the time to assess the interns' logbooks adequately and if such log books have been manipulated, with the consent of the mentor, they are very unlikely to have any way of discovering that."

"The real test of the intern should, we believe, be the exams that he writes at the end of his training period. These will show what he has learnt or what he has failed to learn. A logbook is, therefore, superfluous and nothing more than a nuisance."

Asked what he recommends as solutions to the current difficulties, Clarke said that the best plan would be to revert to the old system adopted by the EAAB, under which the estate agent was supervised on an on-going basis but to a far less stringent degree than currently is expected to happen. Everything he did - and particularly any documentation on which he worked - had to be checked, verified and approved by the mentor. Under the old system, said Clarke, the intern was allowed a far freer hand and greater scope to take the initiative and grow. The new system is a barrier to the Industry's transformation initiatives.

Rawson Property Group Press Release

15 May 2013

New electric fence regulation set to be implemented

In my humble opinion, this is yet another example of an over-regulated "nanny state", where the "man in the street" is being drowned in red tape.

As an attorney, I guess that I should be happy if government puts so much legislation in place that the individual can't possibly keep track of it all and at any given time may be breaking a hundred laws without even knowing it ... the only beneficiaries being the attorneys dealing with the fall out.

HOWEVER, at the same time it restricts free economic activity and thereby harms the economy ... which is bad for property attorneys (except maybe insolvency practitioners and those representing bank robbers).

Gareth Shepperson

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New electric fence regulation set to be implemented

Property owners are going to have to be more careful about who they contract to install electric fences so as to comply with a new regulation.


A new regulation stipulates that electric fences should be certified before a property can be sold.

This regulation stipulates that all electric fences be certified and come with an electric fence system certificate of compliance, as reflected in Regulation 12 of the Electric Machinery Regulations of 2011.

This applies only to systems that came into existence after October 1 last year.

However, it also will apply in cases where the system is

Paltered or added to, or where the premises changes ownership after October 1 this year. Any property transfer after that date, therefore, carries with it the obligation to provide a certificate if there is an electric fence in place.

All properties - including residential, commercial and sectional titles within complexes - must comply.

A number of people have complained about the regulation on social networks, with many saying the it was meant to protect burglars.

"Next they will tell me to remove my burglar proofing because a burglar might get stuck in it and hurt himself... This is total insanity. I'll remove my fence when they remove the criminals," said one.

SA Electric Fences Association founder member Etien van der Merwe said the regulation actually protected innocent people within the property. He added that electrical output from fences had always been regulated.

"Energisers are controlled: the electrical machinery regulations stipulate a certain output. Adjusting fences to be more lethal is actually illegal."

The regulation would ensure installers were held accountable and minimise flyby-night installers.

Failure to have a compliance certificate could cost one a great deal, said John Graham, the chief executive of HouseCheck Home Inspection Services.

"If you don't have the certificate, you can't sell your house, and if somebody gets hurt by a non-compliant fence, you could get sued."

He said electrical fence installers had to write an examination and be registered with the Department of Labour by October 1 this year.

What makes an electric fence compliant?


•It must be installed by a registered electric fence installer, not a non-specialist company.


•Owner must have an electric fence system certificate of compliance.


•Output should not be adjusted to make it more lethal.


•There should be proper warning signs about the existence of an electric fence visible from driveway and pavement.


•It should not over-hang into a neighbour's yard or pavement.

Penalties for non-compliance


•You cannot sell your house without the certificate.


•If someone gets hurt on your property, you have a legal obligation, you could get sued.


•One might have to upgrade to be compliant or be forced to remove the fence.

The Star

14 May 2013

Tshwane boasts of property and tourism at travel show

Tshwane boasts of property and tourism at travel show

Tshwane hopes to woo tourists to the Jacaranda City with its exhibition at the annual travel show, Indaba, being held in Durban. The exhibition showcases all the capital has to offer, from ambitious property developments to sporting events and even wildlife.

Among the developments being promoted is the 110-storey Symbio City, planned to tower over Centurion and include residential, hotel and shopping facilities.

On the tourism front, the city is offering a range of options, including monuments and attractions for nature lovers, including the Groenkloof and Rietvlei nature reserve, the National Zoological Gardens and the Dinokeng Game Reserve, where one can see the Big 5 on the city's doorstep.

Executive mayor of Tshwane Kgosientso Ramokgopa said that as part of the city's Inner City Regeneration Project, work will start on the Tshwane International Conference Centre (TICC) and supporting mixed-use developments.

The TICC site will include three hotels, retail space, offices, residential apartments and a public transport facility.

The project, worth several billions of rand, will create at least 15 000 jobs.

Another massive development is the Symbio City development, a reflection of the range of economic opportunities, cultural experiences and physical environments Tshwane offers.

Ramokgopa said the City of Tshwane was already well on its way to staking its claim as a leading African sports capital, and was promoting the Tshwane Open Golf - the first edition of which was held today.

But what may most surprise visitors to Indaba is Dinokeng. It combines private land to create a 90 000ha reserve with a range of activities including game drives, horse riding, hiking, quad biking, balloon rides and cultural tours.

Pretoria News

10 May 2013

Julius Malema's property auctioned for R5.9 million

Julius Malema's property auctioned for R5.9 million

Expelled ANC Youth League (ANCYL) president Julius Malema's half-built mansion in Sandown, Joburg, was sold for R5.9 million on auction yesterday.


The half-completed property in Sandown, Johannesburg.

The buyer was Norman Tloubatla, chief executive of the company Magnified Designs. He left in a hurry, in a white Porsche, after clinching the purchase. He refused to speak to reporters.

Auctioneer Pieter Geldenhuys said the auction for the three-storey property had gone exceptionally well.

"It actually exceeded my expectations."

He said he expected the property to sell for between R4m and R4.5m.

Much more needed to be spent to complete the house, which would be the best in the neighbourhood, he said.

Asked if the fact that the house previously belonged to Malema had played a role in the interest shown, Geldenhuys said: "Without a doubt. I must say this specific property drew a lot of interest, even internationally."

The house was sold in less than a hour.

Geldenhuys started the bidding at R5m, but no one was interested.

He joked about the bidders all looking down, saying: "It doesn't matter where we start, it's where we end."

The price was then dropped to R2m before the first bidder raised a hand. The home was attached by the court to help cover Malema's tax bill. He owes Sars R16m. Malema bought the property in 2009 for R3.6m.

He had the existing structure torn down and began building his own mansion. The plans provide for a private cinema room, a cigar lounge, a pool and a spa bath, a wine cellar, a coffee bar, and a lift. There is also a "song room". However, the home has no fittings, flooring, plumbing or windows yet.

On March 19, the former ANCYL leader had his Limpopo farm, worth approximately R4m, seized by the Asset Forfeiture Unit.

National Prosecuting Authority (NPA) spokesman Medupe Simasiku said at the time, that the property had allegedly been acquired with the proceeds of fraud, corruption, theft, and money laundering. The alleged crimes were perpetrated against the Limpopo department of roads and transport, Simasiku said. Alternatively, the property had been used to launder money.

In January, sheriffs seized Malema's Sandown and Polokwane homes. Sars rejected a R4m settlement offer on the houses in February.

Malema also faces charges of fraud and racketeering related to the irregular awarding of a R52m tender to OnPoint Engineering in Limpopo.

Sapa

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R2bn new council building to arise in Pretoria

R2bn new council building to arise in Pretoria

Today, Munitoria's south block is a far cry from the showpiece it was when it opened its doors as headquarters of the then Pretoria City Council.

On July 7 the block will be imploded and 44 years of history will be reduced to a pile of rubble.


The south wing under construction in the 1960s.

Built in the 1960s, the official inauguration of Munitoria took place on February 28, 1969 and the first council meeting in the new council chamber took place that afternoon.

At the time, 17 high-speed lifts served Munitoria, making it the largest lift installation in the city, and one of the largest in the country.

The south wing was completed first in 1965 at a cost of R3 million.

Stocks & Stocks built the upper structure of the south block and Engel And Ruyter constructed the south block basement.

However, Munitoria's proud history came to an end on Monday, March 3, 1997 when the west wing, completed in 1968 at a cost of R9m, was gutted by fire.

More than 170 firefighters from the city and Swartkops AFB battled the blaze which raged throughout the night.

The fire started late in the afternoon in the licensing department, but the extent of the devastation was only visible at sunrise the next morning. The south wing was also shut down for days as authorities waited for the smoke to clear.

The west wing was imploded a year later, leaving a gaping hole on the site at the corner of Johannes Ramokhoase and Lilian Ngoyi streets.


The implosion of the west wing, as seen from the Union Buildings.

For years there was debate and lawsuits over the future of the site.

Tshwane Metro Council decided to demolish the south block and build new headquarters, to be known as Tshwane House, on the site.

The intention is to have headquarters which will house all council departments which have been accommodated in buildings throughout the city since the fire, and to have buildings which meet the demand placed on the municipality in the 21st century.

Council staff moved from the south block of Munitoria to nearby Isivuno Building at the corner of Madiba and Lilian Ngoyi streets earlier this year to allow contractors to "strip" the building before its implosion planned to take place later this month.


What the south wing looks like today.

Tshwane spokesman Blessing Manale said the implosion had been delayed mainly because of an assessment which established that the building contained asbestos.

"The country, in implementing a ban on asbestos use, also promulgated regulation for the dismantling, storage, disposal and transportation of material containing active, potential airborne, asbestos.

"The current Munitoria project has to comply with the ban and regulations on asbestos use," he said.

Manale said the implosion had been rescheduled for July 7.

"This will however not delay the completion of the new Munitoria House which is expected to take at least 18 months and be occupied by the first quarter of 2015."

The rubble from the implosion will be stored off site for use as landfill.

Tshwane House construction is estimated to cost R2 billion.

The contractor, Tsela Tshweu Investments, a consortium made up of Standard Bank, Nedbank, Group Five and smaller ventures, was handed the site in February.

Manale said the bridge over Madiba Street would not be removed.

"The design includes the retention of a strengthened and fortified crossover adjoining Sammy Marks and the council offices."

Pretoria News


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