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“ I f you think education is expensive, try ignorance” MC ade my.

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Presentation on theme: "“ I f you think education is expensive, try ignorance” MC ade my."— Presentation transcript:

1 “ I f you think education is expensive, try ignorance” MC ade my

2

3 Legal issues pertaining Building plans Sectional plans Zoning & property rights 24 April 2013

4 Multidisciplinary nature of problem Legal Town planning Surveyor Architect City Council Agent

5 Multidisciplinary nature Property law is complex Architects Surveyors Work togetherTown planners Conveyancers Agents

6 Purpose of seminar 1.Hear from experts – other fields 2.Answers on FAQ 3.Give directionfuture

7 Sonja du Toit Skills & Expertise Conveyancing Property Law Commercial Contracts Sectional Title Development Township Establishment Notarial Work Education University of Pretoria LLB (Cum Laude), University of Pretoria BLC (Cum Laude), Director at M.C. van der Berg Incorporated Attorney, Conveyancer & Notary

8 SECTIONAL TITLES

9 1. How did sectional titles originate? 2. Differences between sectional title and full title 3. Opening of a sectional title scheme 4. Terminology 5. Extension, subdivision and consolidation of a unit

10 1. How did sectional titles originate? 1.Definition of property ito common law: -Ground -Structures attached thereto 2.Shortcoming of the definition -no ownership of “flat” 3.Solution to the problem -Previously: share block schemes -Sectional titles act

11  Owner of erf and structures attached thereto  No body corporate  Can improve the property with approved building plans  Rates & taxes and consumption of water & electricity payable to local municipality  Owner of the unit & undivided share in common property  Body corporate – all owners are members  Consent by body corporate, building plans and new sectional title plans for improvements  Rates & taxes and consumption payable to local municipality Full title Sectional title 2. Differences between sectional title and full title

12 PROPERTY INFORMATION Property TypeERF Erf Number 776 Portion Number 15 Township CLUBVIEW EXT 39 Local Authority CITY OF TSHWANE METROPOLITAN MUNICIPALITY Registration Division JR Province GAUTENG Diagram Deed T86055/1994 Extent SQM Previous Description - LPI CodeT0JR PROPERTY INFORMATION Property TypeSECTIONAL TITLE UNIt Unit 1 Scheme Name SS SNEAD MANOR Scheme Number/Year 134/2008 Situated At CLUBVIEW EXT 90, 1095, 0 Local Authority CITY OF TSHWANE METROPOLITAN MUNICIPALITY Registration Division JR Province GAUTENG Diagram Deed - Extent SQM Previous Description - LPI CodeT0JR ,D553/2007

13 Example: 93 ÷ 231 = 0, x 100 = 40, ÷ 231 = 0, x 100 = 59,7403 If levies are R5 000 per month: Unit 1 pays: R5 000 x 40,2597% = R2 012,98 Unit 2 pays: R5 000 x 59,7403% = R2 987,02

14 Sectional title plans - drafted by surveyor -approved by surveyor general Application drafted by conveyancer Annexure 8 and 9 to sectional titles act: Rules Lodge at deeds office Separate titles: Certificate of registered sectional title 3. Opening of a sectional title scheme

15 4. Terminology 1.Unit 2.Section 3.Common property 4.Exclusive use ( sect 27) 5.Right to extend

16 1.Unit:Section + undivided share in common property 2.Section = house 2.Common property:Areas surrounding unit 3.Exclusive use ( sect 27) in terms of notarialin terms of rules deed of exclusive use Real rightcannot be bonded can be bonded

17 4.Right to extend: addition of more units -Developer -On opening of scheme -For a specified period -Horizontally or vertically

18 5. Extension, subdivision & consolidation of a unit Extension of a unit (Usually problem with duets) -In addition to building plans -Consent body corporate -Approved surveyor general plans -Application to extend – conveyancer -Letter by surveyor - 10% or less increase in participation quota -More than 10% - consent by all bondholders -Effect on exclusive use areas -Simultaneously with transfer -Also possible to subdivide and consolidate units

19 Lydia Lewis Managing Member of Velocity Townplanning & Project Management Skills & Expertise Strategic Planning and Integrated Planning Township Establishment Applications Development Control applications Development Investigations and Advice Urban Renewal & Township Designs Due Diligence studies / Property Audits Education & Membership University of Pretoria B(TRP) Professional Planner: South African Council for Town and Regional Planners (TRP(SA)) South African Planning Institute (SAPI) South African Association of Consulting Professional Planners (SAACPlan)

20 TOWN PLANNING IN GAUTENG 101

21 Introduction to town planning Why Town Planning? Spatial / Strategic Planning Town Planning Schemes Types of land use applications Professions involved Process Applications Land Development Requirements (LDR)

22 Introduction to townplanning

23 Introduction Lydia Lewis B(T&RP) UP, TRP (SA) Member of:- The South African Council for Planners (SACPLAN) - The South African Planning Institute (SAPI) - South African Association of Consulting Professional Planners (SAACPP) A broad overview of town planning, terminology, processes, land use management and other useful information.

24 Why Town Planning?

25 Town and Regional Planning is the process of making decisions on the development and use of land. It is a tool for guiding and facilitating development and regeneration in a way that also preserves the best features of our environment. Thus: What may happen where in the city, and how much of it.

26 Spatial / Strategic Planning

27 Strategic planning,(forward planning) -Regional Spatial Development Frameworks (RSDF) -Local Development Frameworks (LDF) -Spatial Development Plans (SDP). Planning authorities use these documents to control development and determine planning applications. Very important developing tool. -Uses -Densities, etc Policies Guest House, Creche, Commune, Second Dwelling, Home Office, etc. Environmental

28 Spatial Development Plan / Framework

29 Town Planning Schemes

30 Land uses are managed by what are known as Town-planning schemes. Each municipality has its own, unique Town-planning scheme Tshwane is using The Tshwane Scheme of Title Deeds In addition to the zoning regulations, development is also controlled by conditions of title. These conditions are set out in the Title Deed of each property, and can restrict the way in which a property may be developed. “The erf may not be subdivided, except in special circumstances, and with the written permission of the Administrator”. “The erf may only be used for the purpose of a residential dwelling...”

31 Town Planning Schemes (Land use management) Residential 1 Residential 2 Business 1 Business 2 Business 3 Business 4

32 Types of land use applications Township Application Any property with the zoning of “agriculture” are subject to a township establishment application in terms of that area’s Town Planning Scheme

33 Professions involved A land use application is a comprehensive action that includes critical information from many professional disciplines. - Environmental consultant - Land surveyor - Electrical Engineer - Civil Engineer - Traffic Engineer - Geotechnical Engineer - Conveyancer - Town Planner

34 Process After all the information of the abovementioned professions became available, the TP can commence to design the plan. The layout plan is the end result of all information available.

35 Rezoning Application - A rezoning application is basically when you want to change the zoning (use) of your current erf to a different zoning, or if you want to increase the bulk (fsr) or density of your property. Done in terms of the Town Planning Ordinance, In line with Spatial Framework? Every individual erf has it’s own zoning (no blanket zoning). Timeline Costs

36 Process (public participation, council circulation, external circulation) -Submission (including the Bondholder’s Consent). -Advertised in the Provincial Gazette and 2 other newspapers for two consecutive weeks -Site notice is displayed on site for 14 days. -Period for objections is 28 days. -Application is distributed to the different departments of the Municipality. - Comment period is 60 days from submission. -The City Planning Division makes a recommendation which is referred to the applicant for comments. -The application is approved and the amendment scheme is promulgated in the Provincial Gazette

37 Zoning Certificate

38 A rezoning application is subject to certain bulk services Contributions payable to local authority. Bulk services contributions can be regarded as taxes levied by the local authority for the increase in the capacity of the existing storm water drainage sewer system water provision electrical network upgrading of roads due to the rezoning application and is determined according to the area / ”bulk” of the new development. From “Residental1” erf to “Business 4” erf = ± R

39 Consent Use Application When? rezone consent use application Is not a permanent right. A Consent Use application in terms of the relevant Town Planning Scheme.

40 Removal of Restrictive Conditions Application The importance of title conditions as development control measures has diminished over the years due to implementation of more effective & flexible policy documents & laws such as Town Planning Schemes and Municipal Ordinances. -Building Lines -Uses -Building Materials, etc.

41 Subdivision Application A subdivision application is done when you want to subdivide an existing erf into two or more parts. Things you must consider when you want to subdivide: -Density policy -Restrictive conditions in the title deed -Servitudes Time & Costs

42 When you want to consolidate two or more portions with each other. Consolidation Application

43 Things you must consider when you want to consolidate: -Same rights -Same owner -In the same township Notarial ties Application advertised in the press or on the property itself the approval thereof is left to the discretion of the Council - Section 38 process

44 Other Applications Purchase of Council land Second dwelling Relaxation of building lines Advertisements along the Provincial / Gautrans Roads Etc.

45 Land Development Requirements (LDR) What is LDR’s? The rules which you must oblige to in order to do a development on a specific site. Specifically set out in every Town Planning Scheme

46 Includes the following: Landuse Coverage Density Floor Area Ratio or FAR (FSR) Height Parking Requirements Building Lines

47 Eamon Swart Skills & Expertise Township Establishment Sectional Title Practitioner Replacement of Erf Beacons Education University of Pretoria BLandm (Cum Laude), Land Surveyor

48 S V R Land Surveyors 246 Willem Botha Wierda Park

49 Introduction Role of Land Surveyor What does a Land Surveyor do? Requirements before submission to Surveyor General Sectional Titles Extension of Section

50 Role of Land Surveyor

51 University degree Register at Institute of Professional Land Surveyors Working closely with: o Town Planners o Architects oTransfer Attorneys oCity council

52 What does a Land Surveyor do?

53 Cadastral oNew Townships oConsolidations oSub Divisions oServitudes oSectional Titles oReplacement of Erf Beacons

54 Non Cadastral oDetail Surveys oConstruction Surveys

55 Requirements before submission to Surveyor General

56 Consolidation  Approval from Town Council  60 Days after Submission

57 Example:

58 Sub-divisions  Approval from Town Council  Pegging of Erf or Erven  Not the Remainder

59 Example of Parent Diagram

60 Example of Sub-division Diagram

61 Original Erf

62 Sectional Titles

63 Why Sectional Title? Necessary when you have more than one owner on a single property (erf or stand) examples oBlock of Flats oTown House Complex oDuets oGame Farm Developments

64 Pre-requirement for Sectional Title Submission to Surveyor General oSecond Dwelling Approval (City Council) oApproved Building Plan (City Council) oBuildings Completed to Roof Height

65 Extension of Section

66 Any addition i.e. oStoep oBalcony oCar Port oLoft oGarage oAdditions to Existing Building

67 Example: Sheet 1

68 Example: Sheet 2

69 Example: Sheet 3

70 Example: Sheet 4

71 Please Remember Home owners either have approved building plans or no building plans but seldom sectional title plans for extension of section ! ! ! ! ! ! ! Once the property is put up for sale please check if building plans and sectional title plans are up to date.

72 Tertius Horak Owner – KAROH ARCHITECTURAL DESIGN STUDIO Senior Professional Architectural Technologist SKILLS AND EXPERTISE Residential property design Commercial property design Industrial property design Project Management Quantity estimation EDUCATION Technical College SA Nat. Tech. Dipl. (Construction & QS) QBE

73 Introduction

74 South African Council for the Architectural Profession 1Architect (degree) 2Senior Professional Architectural Technologist 3Professional Architectural Technologist 4Professional Draughtsman

75 The role of professionals is multi-functional. 1Advice on a wide scale related to the full scope of works 2Advice related to SANS Advice related to Town planning scheme and by-laws 4Practical design 5Supervision and quality control 6Ultimately to assist a client in achieving his goal within the requirements of the trade

76 The process of plan approval Submission of any building plan with any authority vests only with persons registered with SACAP.

77 Time frame to approve plans Plans are generally approved by City councils City councils have 30 days Disputes with city council interpretation Plans can be obtained by or with consent of the registered owner Responsibility of the home owner to always produce proof of approved plans Loss of plans at city council

78 Timeframe for plan approval 1. Scope of project, appointment and design 1-4 weeks 2. Finalizing of plans & documents, signatures 1-4 weeks 3. Submission to Council 1-5 days 4. Approval by Council 4-8 weeks

79 Process of approval at Council 1Submission of documentation and plans to Building office 2Registration by building office 3On site inspection by building inspector 4 Scrutinizing of plans by Plan examiner 5Geology 6Transport 7Water & sanitation

80 8Health 9Electricity 10Fire 11Town Planning 12Roads & storm water 13Subdivision & consolidation 14Property Services 15 Finance Occupation certificates

81 Cost of plan approval Example eg. 80m² addition not yet on plans Professional fee R (3,5 -7,5% of contract value or rate per m²) Buildingline & height relaxationsR Plan copies, documents and preparationR Appointment of engineer Submission to Council R11 per m²)R Other applications to Council fire) Administrative fee for runnerR Council submission fees 11.00/m² with a minimum fee of R Additional fees

82 Problems occurring due to different requirements of the old and new regulations Implementation of the new National Building Regulations (SANS 10400) 2010.

83 The role of a SDP for commercial properties Site Development Plans (SDP) Purpose of a SDP

84 Coverage, FAR and GFA Coverage is expressed in percentage terms It is calculated as the area as a percentage of the total ground floor area divided by the total site area FAR (floor area ratio) is expressed as a ratio of the total of all floor areas divided by the total site area The reverse calculation to determine the maximum FAR is by multiplying the GFA (gross floor area) by the area of the property

85 The role of parking on commercial properties The Townplanning Scheme.

86 Requirements regarding the NHBRC and Enrolment The principle to create a fund All new residential structures Compulsory irrespective of finance Guarantee for a five year period Cost of enrolment Enrolment not applicable

87 Frequent questions Where and how are building plans obtained? Who may apply for such plans? What is the cost? How long does it take? What if plans are missing or non existing?

88 What is the cost to re measure and provide new plans for a structure and how long does this take? 1New house 2Additions 3 Pools, wendy’s, lapa’s etc What plans or permission is required to build something which was already approved on a previous plan but not concluded at that point in time? Availability and fees

89 Dougie Donald Chief Building Inspector Building Control Office Region 4 Education NHDP Building Management Skills & Experience 21 Years –City Council Building inspector Chief Building Officer –Tshwane Metro Region 4(Centurion)

90 Building inspections

91 Building Control office (Tshwane) Building Control officer (Tshwane)Deputy Director Regions Akasia Sinoville Pretoria Centurion Cullinan Pta East Kungwini Central & West Office Manager

92 Office Manager Chief plan examiner Architect Chief building Inspector (Dougie Donald) 6 Building inspectors 1 Law enforcement Officer 6 Zones in Centurion

93 Duty of Building Control Office Building industry + All buildings in Tshwane are built according to National Building regulations Town planning scheme RSA Tshwane

94 National Building regulations SANS of 2010 Act for whole RSA e.g.Materials SABS Stairs Ventilation Ceiling heights Fire installation Stormwater Foundations Safety Drainage Roofs Walls Floors Glazing

95 Town Planning scheme Every town Differ from town to town Akasia PretoriaTshwane 2008 New Town planning scheme Centurion

96 What does Town planning regulate? Zoning Building line Floor space ratio (FSR) Density Height of buildings Storeys

97 When do we inspect? 1.If requested by owner Are building built according to National building regulations (NBR)? 2.Complaints & inspection Enforce law if buildings out of National Building regulations NB: Duty on current owner to ensure building is according to -NBR -Town planning scheme

98 Occupational certificate When? 1.New buildings 2.Addition to buildings 3.Structural alterations to buildings 4.Additions to property Before 2000 After 2000

99 Process to obtain occupational certificate 1.Submit building plans 2.Approve building plans 3.Request all necessary inspections 3.1Foundation 3.2Floor level 3.3Roof 3.4Open drain 3.5Final drain 3.6Final building

100 4.Certificates Foundation Stairs Engineers Slab Roof Glazing (glass) Electric Plumber 5.Occupational certificate

101 Owner uncertain Building plans  Anyone inspect (seller / purchaser / agent)  No copies  Building office Centurionc/o Basden & Rabie streets Centurion Pretoriaacross Munitoria Isivono building Akasia6649 Dale street, Karenpark

102 What must be on a plan? 1.Buildings 2.Swimming pools 3.Lapa 4.Wendy house 5.Boundry walls 6.Walls 7.Louvre deck 8.Carport

103 Transfer by conveyancer NBR every owner must have plan Inspector enforce against current owner Excuseignorance! NO No prohibition to transfer? Banks? Possible future legislation

104 Advice Sellers: 1.Make sure if plans are in order 2.If not, get plans in order 3. Occupation certificate Purchasers to make sure plans are in order

105 Enforcement 1.NBR e.g. Stairs Ceiling 2.Town Planning scheme Density Storeys Notice to correct

106 Tiaan (M.C.) van der Berg Director at M.C. van der Berg Incorporated Attorney, Conveyancer & Notary Skills & Expertise Conveyancing Property Law Notarial Work Mediation Contracts Practice Management Education University of Pretoria/AFSA Higher Diploma in Alternative Dispute Resolution (Cum Laude), 2000 University of Johannesburg Higher Diploma in Labour Law, 1997 University of Pretoria LLM (Constitutional Law), 1994 LLB, BLC,

107 Framework 1.The problem 2.Can MC (your attorney) transfer property 3.Obligation to disclose - seller 4.Obligation to disclose – agent 5.Where does this leave purchaser? 6.Your dilemma 7.Our advice

108 1.The problem 1.Building plans generally not in order 2.Sectional plans not updated 3.Insurance 4.Home Owners Association 5.Banks may require 6.Purchaser may require 7.Future legislation 8.Estate agent wants to earn a living 9.Not one solution 10.Estate agents approach can differ

109 Framework 1.The problem 2.Can MC transfer property 3.Obligation to disclose - seller 4.Obligation to disclose – agent 5.Where does this leave purchaser? 6.Your dilemma 7.Our advice

110 2. Can MC transfer property? Any prohibition to transfer property? Building plans Sectional plans not in order Zoning Occupational certificate In other words: A. Statutory prohibition? B. Contractual stipulation? C. Bond condition?

111 2. Can MC transfer property? A. Statutory prohibition? currently none future legislation?

112 B. Contractual stipulation? Condition vs warrantee Condition - add clause to contract “the seller must provide the purchaser with approved plans before transfer” -Obligation on MC -can only transfer if plans are approved! If plans are not approved - only with consent from purchaser - then approve after registration ▪ retention? ▪ problem - can plans be approved? ▪ how long will purchaser wait? 2. Can MC transfer property?

113 B. Contractual stipulation? Condition vs warrantee Warrantee - Add clause to contract “seller warrantees that plans are in order” Obligation on Seller: - Sidestep defect issue Purchaser cancels ? If notLower purchase price Purchaser enforces warrantee 2. Can MC transfer property?

114 C. Bond condition? Contract subject to bond Building plansLegal status of Sectional plansbond? Bank requires Zoning Occupational certificateOnly conditional Comply with request Seller can Suspensive condition not fulfilled Bond only conditionally approved Therefor no transaction

115 Framework 1.The problem 2.Can MC transfer property? 3.Obligation to disclose - seller 4.Obligation to disclose – agent 5.Where does this leave purchaser? 6.Your dilemma 7.Our advice

116 3. Obligation to disclose – Seller? Zoning Building plansnot in order Sectional plans Occupational certificate Must seller inform purchaser? A.Statutory obligation to disclose? B.Common law obligation to disclose?

117 A. Statutory obligation to disclose Consumer Protection Act Transaction = CPA compliant YES seller must disclose Developer Seller Bank Speculator If not disclosed statutory warrantees or Purchaser can Reduce purchase priceRight to cancel Transaction = Not CPA compliant NO obligation on seller to disclose NO statutory warrantees Typical transaction

118 B. Common Law obligation to disclose In absence of legislation Default – common law -Non CPA transactions = subject to common law Important to understand common law

119 B. Common Law obligation to disclose …. Defects existed before24 April 2013 Contract concluded Common Law Patent / Latent defects Regulate position Building plans Sectional plans Zoning Occupational certificate

120 Definition A. Patent vs B. Latent Obvious vsHidden

121 A. Patent defect Patent defect isvisible or visible with reasonable inspection ZoningZoning certificate Building plansCity council Sectional Title plansDeeds Office Can argue legal defect = patent Therefore advise purchaser to inspect

122 A. Patent defect… If legal defect = Patent Common Law Caveat Emptor!(Purchaser beware) THEN Zoning  Legal obligation on purchaser to ensure Building plans are in Sectional plans order  No legal obligation on seller to disclose

123 B. Latent defect… Latent defect is not visible or visible with reasonable inspection

124 B. Latent defect… If legal defect = latent Common Law Seller Purchaser As general rule seller is liable for latent defects Warranty There is no latent defects!

125 BUT Voetstoots (as is) reverses position Voetstoots clause excludes / cancels warranty Most estate agent’s contracts If Voetstoots no warranty against latent defects If Voetstoots Latent defect = purchaser’s problem Warranty There is no latent defects!

126 UNLESS Seller 1 Knew of latent defect*Onus of proof 2 Fraudulently & on purchaser Deliberately conceals existence To move seller to buy* Very difficult to prove If purchaser can prove seller’s problem

127 Is legal defect e.g. non-compliance with Building Regulations? PatentLatent

128 Van Nieuwerk vs McCrae (Witwatersrand High Court) (2007) No approval of Building plans High court “assumption there is an implied warranty Buildings are erected in compliance with statutory requirement” Voetstoot clause in contract Court rules - Voetstoots clause only relates to physical defects - Physical nature i.e. geyser, roof, sewerage etc -Not legal issues i.e. plans, zoning Therefore :Purchaser can assume plans are approved as on date of contract

129 Odendaal vs Ferraris (Supreme Court of Appeal) (2008) Facts Seller appoints estate agent Purchaser introduced to property by agent Purchaser inspects property No access to an outbuilding Agent assured purchaser property is in faultless condition Contract is entered into

130 Purchaser occupies property before registration Purchaser notices sewerage manhole in outbuilding before registration Purchaser approaches Municipality Ascertains outbuildings not on plans Purchaser instructs bank not to register bond Seller sees this as repudiation, places purchaser on terms and cancels transaction Purchaser refuses to accept cancellation Seller approaches court to evict purchaser

131 Seller argues: Legal (plans) defect is latent Voetstoots clause protects seller Problem is purchaser’s Purchaser argues: 1. Voetstoots not applicable oVan Nieuwerk vs Mc Crae (W) oImplied warranty buildings are erected in compliance with statutory requirements oVoetstoots only deals with physical defects o Voetstoots does not deal with legal defects Voetstoots clause of no effect 2. Seller had prior knowledge Furthermore Seller knew of defects Had to disclose

132 Supreme Court of Appeal Court rules Contravention of Building Regulations = Latent defect Physical defects Voetstoots clause protects seller latent and patent Legal defects Remember! Unless purchaser can prove that seller -Knew of defect -Fraudulently & -Deliberately conceals - To move purchaser to buy SCA rules-Seller could not prove this

133 Framework 1.The problem 2.Can MC transfer property? 3.Obligation to disclose - seller 4.Obligation to disclose – agent 5.Where does this leave purchaser? 6.Your dilemma 7.Our advice

134 4. Obligation to disclose – agent AgentCPA SellerPurchaser Patent No duty to ascertain any defects Latent But: If agents are aware must disclose (EAAB code of conduct) Don’t give oral warranties Advice: Purchaser must inspect properly

135 Framework 1.The problem 2.Can MC transfer property? 3.Obligation to disclose - seller 4.Obligation to disclose – agent 5.Where does this leave purchaser? 6.Your dilemma 7.Our advice

136 4. Where does this leave purchaser?  If patent defectCaveat Emptor oInspection at City council / deeds office oBefore making offer o Purchaser is not protected Purchaser must inspect  If latent defect No voetstoots – common law warrantee Voetstoots oProtects seller * patent + * latent Unless seller has prior knowledge of latent oPurchaser must prove fraud oSeller is protected oPurchaser is not protected

137 Contractual warrantee o“Plans are in order” oPurchaser is partially protected Obligation on seller to provide Contractual condition o “can not register if plans are in order” oPurchaser is protected Obligation on MC Bond condition o condition in bond instruction o “provide bank with approved plans” oPurchaser is protected oRisk of cancellation Cannot register

138 Framework 1.The problem 2.Can MC transfer property? 3.Obligation to disclose - seller 4.Obligation to disclose – agent 5.Where does this leave purchaser? 6.Your dilemma 7.Our advice

139 6. Your dilemma 1. Most properties not 100% on plans 2. Legally need to be 100% on plans 3. Not legal requirement to transfer 4. Require plans from seller - ? Mandate 5. Advise purchaser to inspect – no offer 6. Ignore - initial bank requirement - bank on instruction 7. unethical conduct / civil claim Property report

140 Property report 1.Not a legal requirement 2.Not a list of contractual warranties 3.Not a list of patent defects 4.Not a list of all latent defects 5.Is a list of latent defects seller is aware of 6.Purchaser acknowledges receipt 7.Make provision building plans sectional plans zoning 8. Protects agents

141 Framework 1.The problem 2.Can MC transfer property? 3.Obligation to disclose - seller 4.Obligation to disclose – agent 5.Where does this leave purchaser? 6.Your dilemma 7.Our advice

142 Different horses for different courses You must choose 1.Advise seller at listing oEstablish if plans are in order oIf not – get it in order immediately o Consequences 2.Advise purchaser to oinspect at city council / deeds office orequire warrantee all improvements comply with statutory and building regulations 3.Protect yourself as agent oDon’t give oral warrantees to purchaser about plans o Advise purchaser to inspect oUse property report

143 VISIT US AT Or us at

144 Spread Kindness & Hope because People Matter


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