F.A.Q
Most frequent questions and answers
General
The Financial Intelligence Centre Act (38 of 2001) (the FIC Act) came into effect on the 1st of July 2003 to help prevent illegal financial activity.As a necessary part of this Act, the identity of any customer participating in any financial transaction through Amour Properties has to be verified.Required Documents
- South African Green Barcoded ID Book / ID Smart-Card / Passport
- A valid document showing Proof of Residential Address (not older then 3 months) e. Utility Bill, Telephone Account
FICA Documents Required For Sale
– Both Seller & Purchaser must submit FICA documents
FICA Documents Required For Rental
Both Landlord & Tenant must submit FICA documents
The Property Practitioners Regulatory Authority (PPRA) formerly the Estate Agency Affairs Board (EAAB) regulates the estate agency profession by ensuring that all persons carrying out the activities of an estate agent as a service to the public are registered with the PPRA.
A real estate agent is a certified professional that not only helps sellers and buyers throughout property transactions, they are also able to manage rental properties on behalf of landlords.
Real estate agents usually are compensated completely by a commission—a percentage of the property’s purchase price.
In order for a real estate agent to legally work in South Africa, they need to have a valid Fidelity Fund Certificate (FFC) issued by the PPRA
A CMA or comparative market analysis is used by real estate agents to determine the market value of a property.
How is a CMA done
This is done by comparing it to similar properties that have recently sold, and properties that are currently listed for sale in the area.
An experienced real estate agent will do a walkthrough and take into consideration all factors affecting the condition of a home.
The Protection of Personal Information Act (or POPI Act) is South Africa’s equivalent of the EU GDPR. It sets some conditions for responsible parties to lawfully process the personal information of data subjects and regulates how information is organised, stored, secured, and discarded.
The Property Practitioners Act has introduced a mandatory disclosure document called the Immovable Property Disclosure. This is a requirement for sale and rental properties
The seller of the property must provide a fully completed and signed mandatory disclosure document in the prescribed form. This mandatory disclosure document (which is prescribed in the Regulations), must be signed by the purchaser (or lessee) and annexed to the sale or lease agreement.
A sole mandate, also known as an exclusive mandate, means you authorise only one estate agent or agency to market your home. It is a contract signed between you and your estate agent, with terms and conditions attached
KYC standards are designed to protect financial institutions against fraud, corruption, money laundering and terrorist financing.
KYC involves several steps to:
- establish customer identity;
- understand the nature of customers’ activities and qualify that the source of funds is legitimate; and
- assess money laundering risks associated with customers.
Sales
Trust accounts by definition, are bank accounts specially designated to hold funds, that belong to others.
A trust account is a legal arrangement, through which funds or assets are held by a third party, for the benefit of another party. This may be an individual or a group.
Real estate agents and attorneys, are required to maintain separate trust accounts for client money and for the deposit of funds for payment of certain conditions that apply to their contracts.
Both industries are protected by fidelity funds. These are accrued by regulatory bodies such as the PPRA, principally from registration and membership fees, as well as from interest earned on trust accounts, that offer valuable financial support to these professions.
The Title Deed is a document, that proves legal ownership of a property in South Africa.
Anyone who purchases a home will need to have the Title Deed transferred into their name. This is proof that they own the property.
The Title Deed Acts as proof of ownership in terms of the Deeds Registries Act 47 of 1937. This document requires each property to have its own separate deed.
Here you will find all the necessary details and important information about the property, such as a comprehensive description and exact size.
No in terms of the ECT Act the following cannot be signed electronically:
An agreement for the sale of immoveable property or Offer to Purchase
Offers may still be scanned and emailed, but must be signed by means of a wet ink signature to be considered valid in law.
The transfer of property is when the ownership of a property is moved from one person to another person. (Eg. When ownership is transferred from the Seller to the Purchaser.)
This happens when a property is sold or when the owner of the property dies and leaves the property to another person.
The Title Deed is transferred into the new owners name
They cancel the seller’s existing home loan on the property. They represent the bank cancelling the seller’s home loan.
Appointed by the bank cancelling the seller’s bond.
They register the bond over the property in favour of the bank that is financing the purchase of the property.
They represent the buyer and the bank granting the buyer’s home loan.
Appointed by the bank granting the buyer’s home loan.
A Conveyancer or Transferring Attorney is by law this is the only person who can register property transactions in the Deeds Offices.
They are responsible for transfer of the property from the Seller to the Purchaser.
The Financial Intelligence Centre Act (38 of 2001) (the FIC Act) came into effect on the 1st of July 2003 to help prevent illegal financial activity.
Both Seller & Purchaser must submit FICA documents:
- South African Green Barcoded ID Book / ID Smart-Card / Passport
- A valid document showing Proof of Residential Address (not older then 3 months) e. Utility Bill, Telephone Account
Q: “I bought a property where the seller did not disclose leaks in the house. The neighbor confirmed with me that the seller did discuss these leaks with her. As this was a latent defect that she did not disclose what recourse do I have?”
A: If the neighbour had confirmed this with you, it is strongly suggested you get this in writing from the neighbour.
Contact the Transferring Attorney/ Conveyancer that has been attending to this deal.
If transfer has not gone through yet:
- Get a in a professional to give you a quote for repair of the damage.
- inform the conveyancer of the situation, since it is a latent defect which the Seller was aware of and is therefore responsible for.
- Give them the quote and let them claim the amount from the Seller on your behalf.
If transfer has gone through this will be slightly more difficult:
- Get a professional quote for the repair,
- you would then have to proceed to sue or institute legal action against the previous owners in order to claim these monies back.
Q: “We have purchased a property where the electric fence is not working. The seller never informed us of this, and we only found this out once we took occupation. Who is responsible to fix this?”
A: Normally this would be the Seller’s responsibility. The electric fence would fall under the Electrical Compliance Certificate (ECC)and should therefore have been in working order and if it was not this would have been noted during the electrical inspection.The Seller should have disclosed this to you.
UPDATE: As of 1 October 2012 a separate Electric Fence Compliance Certificate (EFCC) is required if there is a change in ownership of a property at which property there is an electric fence;
there was no change of ownership but there has been an alteration or modification to an electric fence, even if it was installed before 1 October 2012. There is no mention in the legislation of the certificate being valid for a fixed time period once issued (unlike electrical certificates) and once obtained it can be transferred from one owner to the next. It is however accepted practice that the certificate is valid for 2 years from the date of issue.
Rentals
The Financial Intelligence Centre Act (38 of 2001) (the FIC Act) came into effect on the 1st of July 2003 to help prevent illegal financial activity.
Both Landlord & Tenant must submit FICA documents:
- South African Green Barcoded ID Book / ID Smart-Card / Passport
- A valid document showing Proof of Residential Address (not older then 3 months) e. Utility Bill, Telephone Account
Yes, it is recommended that Landlords perform a credit report on all adults over the age of 18 applying for rent.
However in terms of the National Credit Act Regulations 18(4)(e) and (5) the Tenant must
- first give his / her consent before the Landlord or Amour Properties can access your credit report.
- If the applicant refuses to give consent for the Landlord to perform the credit check – the Landlord is entitled to decline your application for rent.
If the Tenant does not pay the rent, the Tenant is in breach of contract (written or verbal).
Practically the first step of action is to make contact with the Tenant to establish the reason for non-payment. You will know your Tenant and be able to assess if this is a once-off situation or if the Tenant routinely pays late or only partially.
In terms of the Consumer Protection Act, the Landlord must demand payment in writing and give the tenant 20 business days to settle.
Should the Tenant fail to settle after the demand, the Landlord is entitled
- to cancel the lease and
- demand the tenant vacates the property.
Should the Tenant fail to vacate the property as requested, then the Landlord must take legal action to obtain a court order Eviction, after which the Sheriff of the Court will forcible remove the tenant.
The simple answer is No.
The Landlord must maintain the property fit, for the reason/purpose for which it was let.
If the Landlord fails to honour this, the Tenant may demand in writing, that they attend to the maintenance.
The maintenance in question must be a “material breach” by the Landlord eg. a burst geyser or non-working oven. (A material breach does not include missing internal keys, blown light bulbs etc.)
When a tenant doesn’t pay their rent or any outstanding amount in terms of their lease, one of the Landlord’s rights is to load an adverse (default) listing against the consumer’s credit profile.
Before loading the default the supplier must:
- Send the consumer a letter of demand
- The letter of demand must specifically mention the “supplier’s intention to load a default”
- The supplier must wait 20 business days’ before listing the default (and may only list in the account was not settled in full).
- Business Days: when calculating the 20 business days – the date the letter was sent does not count, Saturdays, Sundays and SA public holidays do not count.
Use of the TPN system allows us to access this feature
Yes, Amour Properties is acting as an Agent for the Landlord. The Landlord can and should demand to see the applicant Tenant’s credit reports before making a decision to accept the Tenant.
A Landlord takes the risk should the Tenant default on the rent or miss payments. Every Landlord has a different appetite for risk, and will accept or decline the applicant Tenant based on the credit report, affordability assessment and any other relevant information.
TPN is the largest credit bureau in Africa to specialize in vetting tenants for rental properties.
TPN Database is a network of over 10,000 property managers and landlords across South Africa to access the only comprehensive credit report on your potential tenant.
Consumer and Business credit worthiness checks, tailored specifically for the rental market. Used in more than 90% of rental placements. Credex® score, bank codes, criminal checks and more.
TPN stores the payment behaviour of tenants that is loaded on the system. They also SMS your tenant monthly to advise them of their credit record status, encouraging timeous payment.
Collecting rental timeously is one of the most frustrating tasks that busy property managers and landlords have to undertake on a monthly basis. Using TPN Payment Profile and notification services, requesting rent is quick and easy.
Yes. There is no legislative requirement that a lease must be in writing or signed.
You can conclude, amend, vary the agreement via electronic communications with an electronic signature. Provided it is NOT a long-term lease of land exceeding 20 years