SHEPPERSON'S FIRST LAW

GARETH'S LINKEDIN NEWSLETTER EDITION FIVE

noreply@blogger.com (Gareth) — Wed, 6 Apr 2022 07:22:00 +0200

RENEW YOUR PURPOSE

The word “April” actually comes from the Latin word aperio, meaning to open, uncover, reveal, make clear, which is why in this issue, I am highlighting the theme of renewing your purpose. [Credit to The Entrepreneurial Lawyer for this idea.]

For those of you who have followed my journey, it would appear that I am constantly renewing my purpose (or at least renewing the path that I have chosen to achieve such purpose).
From my first foray into the realm of running my own business, ... READ MORE HERE

Please hit the SUBSCRIBE button on my LinkedIn Newsletter "The Competitive Edge" to see all of my updates.

GARETH'S LINKEDIN NEWSLETTER EDITION FOUR

noreply@blogger.com (Gareth) — Mon, 7 Mar 2022 12:08:00 +0200

Place not your trust in money, but place your money in Trust.

The heading of this Edition of The Competitive Edge is a quote from Oliver Wendel Holmes. In the past week, I have written an Article for a magazine on Trusts and Property and, in the process of researching the Article, I used some older material that I had gathered over the years. In the older material (2014), I discuss the risks that everyone faces and ........

Click HERE to read the remainder of the Newsletter

GARETH'S LINKEDIN NEWSLETTER EDITION THREE

noreply@blogger.com (Gareth) — Mon, 7 Mar 2022 12:03:00 +0200

Faster than the speed of light

The title of my second LinkedIn Newsletter was "And just like that" because the second week snuck up on me so fast. If that was fast, then the third edition was due "faster than the speed of light"!

I realised that bi-weekly editions may be more manageable. I have therefore changed ....

Click HERE to read the remainder of the Newsletter

GARETH'S LINKEDIN NEWSLETTER EDITION TWO

noreply@blogger.com (Gareth) — Mon, 7 Mar 2022 11:52:00 +0200

And just like that ... the second Edition

Hello my loyal and faithful band of Subscribers (and others)

As the heading of this Article suggests, in the blink of an eye, we've arrived at the second edition of The Law, Property and Business. The first order of business must surely be to find a better name for this Newsletter. All suggestions will be most welcome. I know what some people think of Lawyers, so let's keep it clean. ;)

What's in this Edition, I hear you ask ........

Click HERE to read the rest of the Newsletter.

GARETH'S LINKEDIN NEWSLETTER EDITION ONE

noreply@blogger.com (Gareth) — Mon, 7 Mar 2022 11:46:00 +0200

Love some Feedback ... please!

This is my first LinkedIn Newsletter and it therefore seems appropriate that it be somewhat "introductory" in nature, rather than "informative". I nevertheless hope that you'll find it interesting.

In future editions, I will address specific issues, current topics of conversation, questions, discussions, etc. that may crop up from time to time in my specialist areas. Please let me know if you would like me to discuss any specific issues.

What can I tell you about myself that isn't apparent ......

Click here to view the remainder of the Newsletter

Zakhelikhaya Video Feb 2022

noreply@blogger.com (Gareth) — Mon, 7 Mar 2022 11:27:00 +0200

Elegant Corporate Services March 2022

noreply@blogger.com (Gareth) — Mon, 7 Mar 2022 11:25:00 +0200

THE ZAKHELIKHAYA PROJECT CHANGES THE SELF-BUILD LANDSCAPE

noreply@blogger.com (Gareth) — Mon, 13 Dec 2021 13:56:00 +0200

PRESS RELEASE

THE ZAKHELIKHAYA PROJECT CHANGES THE SELF-BUILD LANDSCAPE

The word zakhelikhaya means “Build your home” and that is exactly what the Zakhelikhaya Project is doing. According to Gareth Shepperson of M5 Bimagorsy (the Project Managers), “An applicant may easily apply for a house in selected Cashbuild stores or by scanning a QR Code or by SMS.”

There is a well-documented housing shortage in South Africa. Many people don’t know that they qualify for loans and finance but by simply completing an extremely simple online application form, people will immediately be pre-qualified for such finance and subsidies. Even if they don’t qualify, our consultants will assist the applicant in making the necessary changes in their personal financial circumstances to access funding.

The applicant will also be asked whether they have land available or whether they would like the Project to find them a Stand. The applicant can select a house from three different options. The houses have been designed by top South African architects, with an international reputation for excellence. As part of the turnkey solution, the Zakhelikhaya Project will ensure that the plans are adapted to the orientation and specifics of the stand and approved by the Municipality.

Once the registrations are completed in the Deeds Office and the plans are approved, the Zakhelikhaya Project will construct the chosen house to the highest possible standards. Not only will the contractors be fully vetted but all the materials will be sourced from Cashbuild, so the quality will be there. The project will be rolled out nationally to all Cashbuild stores (almost 300 stores in South Africa).

There is clearly a massive opportunity for people who want to build their own home, but the Project will also benefit Local Builders (SMME’s), Developers, Estate Agents and Municipalities. As part of the Project, M5 Bimagorsy will appoint local builders who have been fully vetted to ensure that they meet the required standard. As the Project unfolds, training will be provided to uplift local builders to ensure that they can attain the required standard.

Developers, Estate Agents and Municipalities may add their Land to the Project database for inclusion in the Project and thereby gain access to a vast number of pre-qualified Buyers. Properties may be listed at www.webuystands.co.za and are free to upload.

Shepperson says, “By simply completing an easy online application, the applicant sets the wheels in motion to receive a dream house in their chosen location, with absolutely none of the frustration usually associated with a self-build. In addition, local builders will benefit by inclusion in something much bigger than they would usually gain access to and, lastly, Developers and others may approach a vast pool of potential buyers, with access to finance. It’s a triple win!”

M5 Bimagorsy (Pty) Ltd

13 December 2021

www.gorsy.co.za

NOTARIAL BONDS - Can they save your business?

noreply@blogger.com (Gareth) — Mon, 7 Jun 2021 17:21:00 +0200

Does your business sell goods/services on Credit?
Does your business buy goods/services on Credit?
How do you secure that Risk?
In these COVID times, the security that a creditor will hold will be of EXTREME importance.

Notary Public

Debtors may encumber their immovable property with mortgage bonds or cede various rights in favour of creditors as security (e.g. pledges, cessions, etc.). There is also Credit Insurance or Factoring that may be used to "secure" the debt. However, a form of security that is often overlooked is notarial bonds.

1. BENEFITS OF NOTARIAL BONDS

Commercial convenience

Debtors generally have easier access to movable property, as opposed to immovable property. Many debtors have movable property that can be used as security but they are unable to “unlock” the value of these movables because most lenders only want security over land.

A lender who is willing to take security in the form of a notarial bond over movables (which is just as secure in law as a mortgage bond over immovables) will have a much wider target market.

Possession

The second reason that notarial bonds are particularly useful in the South African context is that the debtor remains in possession of the movable property even though it has been bonded in favour of the creditor.

This means that more debtors are willing to bond their movables because the debtors can keep the property safe in their possession whilst they are repaying the loan

Real Right

With a special notarial bond, the Creditor gets a limited real right in respect of the moveable property specified and described in the bond

Prescription

The prescription period under a special notarial bond is 30 years (and not after 3 years as the case with most normal loan agreements that are not secured).

Registration costs

The registration cost of notarial bonds is ordinarily based on the value of the movable property, and which means that the cost is usually affordable to the debtor (who is most commonly made responsible for bearing the cost of the registration of the notarial bond).

Fruits

A notarial bond can encumber not only the movable property itself but any fruits of the movable property - like rental earned on the lease of the movable property, or if the movable property is the kind of thing that would produce young (like a flock of sheep, of a herd of cows), then the offspring of the movable property can also be encumbered.

This gives the creditor additional security over and above the value of the movable property on its own and it is not necessary for a creditor to register further notarial bonds over the fruits as and when they come into existence.

2. BASIC REQUIREMENTS

The following elements contained in a notarial bond are essential:

· A valid causa for the registration of a notarial bond

The cause of debt refers to the circumstances necessitating the registration of a notarial bond. This emanates from an agreement. Typical causes of debt include monies lent and advanced in accordance with the terms of a loan agreement, a credit facility or a guarantee provided for the debts of a third party in accordance with the terms of a guarantee agreement.

· A power of attorney and draft notarial bond as an annexure

The power of attorney is a unilateral document, signed by the borrower and two witnesses. A draft notarial bond is attached to the power of attorney as an annexure.

By signing the power of attorney, the borrower authorises an agent, to appear before a notary public in his place and stead and to encumber his movable property in favour of the bondholder, in accordance with the terms of the draft notarial bond attached.

In the event that the mortgagor does not wish to sign a power of attorney, the mortgagor may appear before the notary public and execute the notarial bond in the notary public’s presence.

· Necessary resolutions

Copies of the relevant resolutions and the power of attorney are filed in the notary public’s protocol for verification purposes.

· Registration

Section 61 of the Deeds Registries Act 47 of 1937, requires every notarial bond to be registered in a deeds registry within a period of three months after the date of its execution or within such extended periods as the court may on application allow

Registration in respect of different Entities

Natural Person

The application of section 61(3)(b) of the Act creates no problem where natural persons are concerned.

The Partnership or Trust

If the mortgagors are described as carrying on business in partnership, or as a trust, section 61(3)(b) of the Act must be complied with in respect of all the partners of the partnership or trustees of the trust (RCR 16 of 1954).

The Company with Limited Liability

Nothing prohibits the bond from being registered in any of the other Deeds Registries within the prescribed period of time (see RCR 38 of 2006).

The registered registry of the company or close corporation is regarded as the place of “residence” of the company or close corporation for the purpose of section 61(3)(b) of the Act.

Section 62 of the Deeds Registries Act, 1937, stipulates –

For companies (and cc’s) the notarial bond must be registered in the Deeds Registry for the area in which the registered office of the company or cc is located and shall be effective as registration for the whole of the Republic of South Africa.

A special notarial bond must meet the requirements set out in the Security by Means of Movable Property Act, 1993, the most important of which is that all assets covered by a special notarial bond must be described clearly and accurately in order to ensure that, upon enforcement of the applicable security, such assets are specifically identifiable through reference to the bond only, without the need for additional extrinsic evidence.

3. GENERAL VS SPECIAL NOTARIAL BONDS

General Notarial Bonds

A general notarial bond does not confer a real right on the Creditor in respect of the moveable property encumbered by the bond. Only once the general notarial bond is perfected will a limited real right be created in favour of Creditor in respect of the moveable property encumbered by the bond.

The perfecting of a general notarial bond requires the taking of possession of the movable property under the bond pursuant to a Court order.

It is important to remember that a Debtor can register more than one general notarial bond over his or her movable property and that the date of perfection will determine the ranking of the Creditor’s claim (not the sequence of the registration of general notarial bonds).

Where a creditor of a general notarial bond perfects his or her claim before sequestration/liquidation of the Debtor, the Creditor will enjoy a secured claim against the insolvent estate. If the general notarial bond is unperfected at the time of liquidation/sequestration, then despite the general notarial bond having been successfully registered, the Creditor will not have a limited real right and therefore no secured claim against the insolvent estate (Development Bank of Southern Africa v Van Rensberg).

After the sequestration/liquidation of the Debtor, the Creditor can no longer perfect the bond and the Creditor will rank as a concurrent creditor with a preferential claim against the free residue of the insolvent estate (Trisilino v De Vries).

Special Notarial Bonds

With the registration of the special notarial bond, the Creditor gets a limited real right over the movable property encumbered by the special notarial bond. Unlike a general notarial bond, there is no need to take possession of the movable property under the special notarial bond to create the limited real right (see s.1 of the Security by Means of Movable Property Act, 1993).

The ranking of claims when it comes to special notarial bonds also differ from general notarial bonds. When there is more than one special notarial bond registered over a particular movable asset, the special notarial bond registered first will have priority.

Another advantage of a special notarial bond is that it will rank above a landlord’s tacit hypothec if the landlord’s tacit hypothec is unperfected at the registration date of the special notarial bond.

4. TYPES OF NOTARIAL BONDS

·         Ordinary notarial bond
·         Notarial covering bond
·         Collateral notarial bond
·         Notarial surety bond
·         Notarial indemnity bond

5. WHAT CAN SERVE AS SECURITY?

Security serving under a notarial bond may be corporeal movable things, such as furniture, the goods of a business, animals, etc., and/or incorporeal things such as e.g. an unregistered lease, a short term lease of immovable property, a liquor license, shares in a company, etc. (see RCR 15 of 2004).

If stock-in-trade is mortgaged under a special notarial bond, not only the original articles will be covered (if unsold), but also subsequent replacements and additional stocks will serve as security.

· Leases And Sub-Leases

Sections 81, 82 and 83 of the Deeds Registries Act, 1937, lay down, inter alia, certain rules for and in connection with the hypothecation of leases and sub-leases by notarial bonds.

· The Ship Registration Act 58 Of 1998

In terms of Items 9 to 11 of Schedule 1 to the Ship Registration Act 58 of 1998, a ship or a share of a ship may be mortgaged as security for the discharge of an obligation, however not in terms of a notarial bond registered in a deeds registry.

· Convention on the International Recognition Of Rights in Aircraft Act

An aircraft or a share in an aircraft shall not after the coming into operation of the Convention on the International Recognition of Rights in Aircraft Act (hereinafter referred to as the “Rights in Aircraft Act”) be mortgaged by bond registered in a deeds registry.

However, the said Act is not applicable to the following:

Ø Hang glider

Ø Para glider

Ø Captive balloon

Ø Kite

Ø Model Aircraft

Ø Foreign registered aircraft

Ø Parachute

Ø Powered para glider

Ø Hot-air balloon

Ø Unmanned radio-controlled aircraft.

Liquor Licenses

A liquor license may be hypothecated by means of a notarial bond (Solomon v Registrar of Deeds).

· Stock-In-Trade

Stock-in-trade is normally intended for sale, therefore it is impractical for it to be used as an object in a notarial bond. It is in practice permitted to determine to what extent stock-in-trade is identifiable and as an object for utilisation in a notarial bond. It will look more or less like a stock list.

· Crops

Existing as well as future crops which have not yet been harvested are regarded as immovable property and cannot be mortgaged under a notarial bond.

· Plant and Equipment

Manufacturing entities frequently have plant and equipment of significant value that is capable of being used as security under a notarial bond.

6. THE NATIONAL CREDIT ACT

The treatment of a notarial bond and a mortgage bond is different under the NCA.

Under the NCA a “mortgage agreement” is regarded as a “large agreement”. Accordingly, a mortgage agreement that is concluded with a consumer that is a juristic person will not be subject to the NCA, irrespective of the consumer’s asset value or turnover and irrespective of the principal debt under the transaction.

A notarial bond is not regarded as a mortgage agreement and is therefore not a large agreement under section 9 (4) (a) of the NCA. The structuring of the transaction is therefore important..

Generally, where the principal debt exceeds the threshold value (currently R250,000.00) and the consumer is regarded as a juristic person in terms of the NCA, the NCA regards the transaction as a large agreement in terms of section 9 (4) (b). If the principal debt does not exceed the threshold value, you will need to determine the asset value or annual turnover, together with the combined asset value or annual turnover of all related juristic persons, of the consumer.

7. PARATE EXECUTIE CLAUSE

In some cases the secured creditor can simply agree with the borrower that the secured assets are sold without the need for judicial execution. This is known as parate executie (the right of a creditor to realise a borrower’s property without first obtaining a court order).

An agreement of parate executie concerning movables pledged and delivered to the secured creditor is valid provided there is no prejudice to the security provider. However, an agreement of this nature is invalid in relation to security over:

Immovable property.

Secured assets not in the possession of the secured creditor at the time it wishes to enforce its rights.

8. RANKING OF CLAIMS

· General notarial bonds (GNB)

Perfection of a GNB bond is crucial in creating a limited real right over the bonded property. Perfection entails a further step of taking possession of the movable property pursuant to a court order.

· Ranking of claims

A borrower is entitled to burden its moveable property with numerous GNBs. Where a borrower has granted more than one GNB over its moveable property, the date of perfection rather than the date of registration determines the ranking of the bondholder’s claims.

· Insolvency of the Borrower

Where a bondholder of a GNB perfects its claim prior to sequestration/liquidation of the borrower, the bondholder will enjoy a secured claim against the insolvent estate.

If the GNB is unperfected at the time of liquidation/sequestration, then despite the GNB having been successfully registered, the bondholder does not have a limited real right and therefore no secured claim against the insolvent estate.

Special Notarial Bonds (SNB)

SNBs may be registered in respect of specific items of moveable property that must be described in the bond in such a manner that the property is readily recognisable.

Moveable property encumbered by a SNB must be readily recognisable to a third party on the basis of the description in the bond alone, without recourse to extrinsic evidence. If this requirement is not met, registration of the SNB will not confer a preference in favour of the bondholder.

Unlike GNBs, the bondholder is granted a limited real right simultaneously with the registration of a SNB.

· Ranking of claims

Where more than one SNB is registered over a particular moveable, the competing claims of the bondholders will be ranked according to when the respective SNB was registered.

Furthermore, bondholders with prior-registered SNBs will be required to consent to further SNBs being registered over the bonded property, providing increased protection to the bondholder whose bond was registered first in time.

· Landlord’s tacit hypothec

A registered SNB ranks superior to a landlord’s tacit hypothec if that hypothec is unperfected at the time of registration of the SNB.

· Secured claim against insolvent estate

The implication of the limited real right afforded to the bondholder of a SNB at the time of registration is that should the borrower’s estate be liquidated/sequestrated, the bondholder will have a secured claim against the insolvent estate in respect of the encumbered movable property.

9. CONCLUSION

In this Post, I have highlighted the numerous benefits (to Creditor and Debtor) of registering Notarial Bonds in order to secure debt. I have had the pleasure of having dealt with a number of (large and medium) companies that have used Notarial Bonds with tremendous success.

So, can Notarial Bonds save your business? They most certainly can!

SPLUMA - What is it?

noreply@blogger.com (Gareth) — Tue, 20 Apr 2021 13:58:00 +0200

I was extremely proud to be invited to this Podcast, which is presented by two truly inspiring ladies and to join in the conversation with my friend Nigel Adriaanse from Enterprise Development Property Fund (EDPF).

We chat about the Spatial Planning and Land Use Management Act (SPLUMA), which is an essential piece of legislation for every Property Investor or Developer to have some knowledge about.

Click Image for Link

In this week’s episode, we brought back Nigel Adriaanse (episode 39), who introduced us to Gareth Shepperson, a conveyance attorney at Delport Van Den Berg, a law firm in Pretoria South Africa.

We invited Gareth to talk to us about the Spatial Planning and Land Use Management Act because when we started on our journey of real estate investing, we were prevented from buying a property we liked because of this act.

The investor we were trying to buy the property from is actually a seasoned investor with apartment buildings, hotels and guest houses in Mpumalanga, but he also seemed unaware of this act.

He was actually selling the property to raise funds for a hotel he was building. In the end, the deal fell through and we couldn’t get the property because the municipality wouldn't approve the sale.

So in this episode, Gareth answers the following questions:

Why SPLUMA is relevant and important to investors and how does it apply to rural and urban land?
Who should be aware of SPLUMA?
At which stage of development is SPLUMA most impactful- drawing of plans/ the actual constructions phase/ at application of occupational certificate?
Who enforces the SPLUMA and how would enforcement of SPLUMA look like, with regards to a property one has developed?
What other Local Municipal regulations work in conjunction with this regulation?

This is a very important episode for investors who are looking to get into multi-lets or developments in South Africa.

So get your pen and papers out, click play, listen, make notes and leave us a comment in the comments section.

EASTER with Elegant Corporate Services

noreply@blogger.com (Gareth) — Mon, 29 Mar 2021 09:56:00 +0200

Celebrate this Easter by securing the future of your Spouse and Children

FREE consultation (30 Minutes)
10% discount on New Trusts
Payment holiday on the monthly Trustee Fees

Contact me at gareth@prop-law.co.za or visit us at www.elegantcorp.co.za

Have a GREAT Easter!

Gareth & Family

What is Land Tenure?

noreply@blogger.com (Gareth) — Wed, 24 Mar 2021 09:37:00 +0200

LAND TENURE and the PROPERTY INVESTOR

What is Land Tenure and how does it affect the property investor?
What is ULTRA (Upgrading of Land Tenure Act?
How have recent Court Cases changed ULTRA?
What about Land Tenure in the former TBVC states?
What about the concept of the "Family Home"?

We answer these questions and more in this video.

We have done a series of videos with Taurai Jack of M5 Real Estate (Pty) Ltd, known as M5 Property Addicts, about certain legal aspects of Property Investment and Property Law in general. The series starts with a look at the solid foundation that all serious Property Investors should establish, namely a solid business structure.

"The most important aspect of making money out of property is preserving and protecting both the property and the wealth that is created.

Far too many property investors rush into buying properties without first getting a suitable property investment structure in place. Without a suitable property investment structure you are exposed and vulnerable to creditors who can ruthlessly take away everything you have gained." - Jason Lee

Follow this LINK for more on this topic.

The series then follows the process. This starts with completing your Offer to Purchase (OTP) like a PRO. If you are a professional property investor, why would you use a generic OTP and not customise a bespoke document that serves your unique interests? It is the document that will regulate your acquisition of an asset that is likely to be one of the biggest assets on your balance sheet and you want to use a document that costs you the least (or is free)!

We then looked at the Conveyancing process. How is ownership of the property that you have just purchased transferred? In this video, we look at the process that leads up to lodgment in the Deeds Office and then I take you on a Walk Through of the Pretoria Deeds Office to show you how it operates and what eventually leads to you receiving your Title Deed. What is Prep? What is Execution? See the actual Execution Hall.

We then consider some pending legislation in the form of the amendment to the Upgrading of Land Tenure Act and the Expropriation Act. I believe that any serious Property Investor should not only have a basic knowledge of the Laws and Regulations that govern their investment arena but also keep an "eye on the horizon" in the form of proposed legislation. Our look at legislation will be an ongoing part of the series of videos.

We also examined Mortgage Bonds. What is a Mortgage Bond and where did they originate? How are they registered? What should you do when you struggle to pay? In this episode Taurai and I are joined by Vijayta Rana from my Law Firm (Delport van den Berg Incorporated).

Please see the BLOG ARCHIVE on this Blog for Links to all these Videos.

Please SUBSCRIBE to this Blog for updates and please COMMENT on any of the topics that I discuss.

Thanks

Gareth Shepperson

Lecture with Love

noreply@blogger.com (Gareth) — Fri, 19 Mar 2021 12:01:00 +0200

A day with the

ENTERPRISE DEVELOPMENT PROPERTY FUND

On Tuesday (16 March 2021), I had the most amazing opportunity to present to the enthusiastic students of the EDPF.

These are not students who happen to be at university because they didn't know what else to do after school. These are students who have actually identified real estate as their path in life and are enthusiastic about everything related to property investment and property development.

The EDPF provides a transformational opportunity for its students. Each student receives a tablet with all the course material and additional features pre-loaded. They don't refer to their students as "students" but as "entrepreneurs". Although it is a three-year academic program, during the 3rd year, the entrepreneur will focus on “Making the business operational” and securing their first deal. The ultimate goal is to ensure each entrepreneur leaves the programme with their very first TITLE DEED, so as to ensure that they make their vision of “Changing the LANDscape of property ownership patterns in SA” a reality.

I have the pleasure of presenting the following lectures:

MODULE 1 : BASIC LEGAL CONCEPTS

MODULE 2 : PROPERTY CONVERSION

MODULE 3 : TRANSFERS

MODULE 4 : PROPERTY DEVELOPMENT

MODULE 5 : ESTATE PLANNING & TAX

MODULE 6 : CONSTRUCTING A GOOD TEAM

On Tuesday, I started with Modules 1 & 2. A number of the "students" have already embarked upon their real estate journeys and have the experience to actively participate and stimulate debate. I encourage students to ask questions throughout the 5 hours (9am to 2pm) and this often takes us way beyond the confines of the curriculum and into the nitty gritty of the real world.

The tea and lunch breaks provided an avalanche of questions, experiences and insights. It was truly enriching and I look forward to the remainder of the Modules later in the year.

The feedback that I received on LinkedIn (follow Link) and elsewhere has been extremely positive, so hopefully I will continue with these interactions for some time because it truly was a "Lecture with Love".

A massive shout-out to Nigel Adriaanse, the CEO of EDPF and to Iris for the best mince vetkoeks that I've ever had.

Please Subscribe and Share

noreply@blogger.com (Gareth) — Tue, 16 Mar 2021 16:23:00 +0200

Hello Reader

If you find any value or entertainment (hopefully both) in my Blog, please Subscribe to Shepperson's First Law or Share any individual Posts.

SUBSCRIBE

Simply click on SUBSCRIBE at the top of my Page and follow the prompts.

Alternatively, Click on Menu -

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Thank you for taking the time to read my Blog. If you have any suggestions for future topics, if you have some constructive criticism or if you have a differing view on any of the topics that I have discussed, please use the COMMENTS to voice your opinion.

Cheers

Gareth

How to "creditor-proof" yourself

noreply@blogger.com (Gareth) — Fri, 12 Mar 2021 11:32:00 +0200

One bad decision could destroy years of hard work.

Don't allow this to happen. It isn't bad luck, if you decide to allow yourself to remain vulnerable when you have a choice.

I am not saying that you will never be sued or even sequestrated but these events should not take away everything that you have built up. I have seen so many examples where one bad decision or one unpredictable event (think Covid) destroys a business that has taken years to build. The owner being entirely invested in his/her business and totally reliant on that income is left destitute.

It is possible to retain your house, your car, your furniture, your sentimental treasures ... and your PRIDE ... even as your Creditors circle, sue and try to sell your stuff. It is not easy or quick but it is possible.

Back in the 90's, I was introduced to a book by Peter Carruthers called Crashproof your business. Times change and, of course, the law changes but the fundamental principals that Peter wrote about over 20 years ago remain sound. If you compartmentalize or ring-fence your risk (debt), then any creditor will ever only have access to that "compartment" and every asset that you have transferred to another compartment will be 100% safe.

Sounds easy? Here is where the hard part enters the picture, it is not sufficient to compartmentalize your risk, you must actively manage the compartments that you create.

For more information please follow this LINK or arrange your FREE Zoom Consultation on the Website.

Do YOU want to leave a LEGACY?

noreply@blogger.com (Gareth) — Tue, 9 Mar 2021 10:40:00 +0200

How to preserve your Legacy!

Most of us would like to leave the world in a better place when we depart. The reality is that very few of us will affect planetary change. However, we can still leave our spouse and children in a better position by ensuring that our financial legacy is passed on to them (or to other friends/relatives or charities).

This is less likely to happen if we allow over 50% of our estate to be lost in fees and taxes. Even if you are comfortable in allowing such erosion of your wealth, there may be significant unintended hardship for your spouse and children.

Firstly, your assets will be frozen and if they want to access your funds, they will be unable to do so.
Secondly, the fees and taxes are payable by your estate. You may have many assets (movable or immovable) but not much liquidity (cash). The result is that despite being "wealthy", your spouse/child will have to sell these assets to pay the fees and taxes. This often results in assets being sold below market value. I have just recently advised a client who was forced to sell his farm (where he intended retiring) because of liquidity issues when his wife passed away.

All of this hardship can be avoided!

If your assets are held in a Trust, your beneficiaries will be able to continue to enjoy the use of these assets in exactly the same way as when you were alive. There will be no freezing of assets. There will be an insignificant amount of fees (Executor, Legal, Estate Agent, etc.) or taxes (Estate Duty, Transfer Duty, Capital Gains Tax) payable.

Trusts are NOT only for the wealthy but for anyone that wants to leave a Legacy. Bespoke Trusts may be expensive but a standard Trust should not be beyond your reach.

More details are available at www.elegantcorp.co.za

I made this VIDEO a few years ago, but it is still very relevant! Please view the VIDEO by clicking the Link.

Contact me at gareth@prop-law.co.za for a FREE consultation or feel free to Comment below.

Why not subscribe to this Blog for regular updates?

PROPERTY TRANSFERS: Expectations vs Reality

noreply@blogger.com (Gareth) — Mon, 8 Mar 2021 17:28:00 +0200

When buying or selling property, this can be an exciting time but it can also be nerve wracking or frustrating.

Frustration is usually borne out of unrealistic expectations. The reality regarding the timelines or costs or both are often glossed over by estate agents in an attempt to secure the sale. Here is a very brief list of realities!

TIMELINE

The timeline is dependent upon so many interconnected parties and events that a fixed timeline is impossible to predict. This is a very rough guide.

If the Purchaser requires finance, there is usually a fixed time for them to secure "approval in principal". This is usually between 14 and 60 days, depending on the nature of the contract. However, approval in principal does not mean that the Bank has finalised its processes. There may be a myriad of information and documentation that the Bank requires before it is ready to proceed. In an example, from personal experience, an approved set of building plans was required as a condition for the loan. The Municipality had misplaced the plans and new set had to be prepared, submitted and approved. This took six months.

The sale is frequently subject to the sale of the Purchaser's house. How long does this take? How long is a piece of string?

Then there are a number of Certificates that may be required by the Conveyancer (i.e. transferring attorney) before he/she can lodge the Transfer in the Deeds Office for registration. The most common are:

Municipal Rates Clearance Certificate
Levy Clearance Certificate
HOA Certificate
Electrical Compliance Certificate
Electric Fence Certificate
Gas Compliance Certificate
Entomologist Certificate (Beetle Certificate)
Plumbing Certificate

Some of these may take months to obtain.

The Offer to Purchase is so very important in trying to mitigate against potential delays. Having the best Conveyancer attending to the Transfer also helps ... nudge, nudge, wink, wink 😉

COSTS

Many of the above certificates are obtained at the Seller's cost. The Seller is very often not expecting to pay anything at all and only expects to receive money (i.e. the purchase price). It often comes as a shock, especially if major repairs are required in order to obtain the certificate. If there is an existing mortgage bond registered over the property, this must be cancelled at the Seller's cost. The fee is usually R3,000 to R6,000. This is the attorney's fee and doesn't include any penalties levied by the Bank.

We also find that the Purchaser is unaware that he/she is liable for both the Transfer Costs and Bond Costs. There are most often two different law firms attending to register the Transfer (of ownership) and the Mortgage Bond and they must both be paid. Even if the same firm attends to both, there is a fee attached to both. Please click on this LINK for our calculator for Transfer and Bond Costs.

People are often confused by Transfer Costs, Transfer Fees and Transfer Duty.

Transfer Fees are the attorney's fees for the legal work. Transfer Duty is the Tax payable to the government (SARS). Transfer Costs include Transfer Fees, Transfer Duty and any other expenses incidental to the Transfer.

To avoid most of these frustrations or just to request a quotation, please email me at gareth@delberg.co.za

An Oldie but a Goodie

noreply@blogger.com (Gareth) — Tue, 2 Mar 2021 14:37:00 +0200

Blog to people, not at people

By Kevin O'Keefe

Blog to people, not at people | Real Lawyers (lexblog.com)

I came across this old Blog Post and it spoke to me.

That shouldn't surprise me because Kevin knows what he's talking about. He has always been somewhat of an inspiration for me, having followed him for over a decade. Let me tell you a little about Kevin.

In 1999, Kevin closed hislaw firm to start his first company. Prairielaw.com was a virtual law community of people helping people, featuring message boards, articles, chats, listervs and ask-a-lawyer.

Prairielaw.com was sold to LexisNexis, where it was incorporated into Martindale-Hubbell’s lawyers.com. After a stint as VP of Business Development at LexisNexis, Kevin founded LexBlog out of his garage in 2004 (no affiliation with LexisNexis).

When he could not find someone to help him with his own blog, he started a company to provide what he needed. Strategy, professional design, platform, coaching, SEO, marketing and free ongoing support.

LexBlog has grown to a community of over 30,000 legal professionals, world-wide.

His blog, Real Lawyers, is now in its 17th year.

Seth Godin - An abundance of caution

noreply@blogger.com (Gareth) — Mon, 1 Mar 2021 15:02:00 +0200

An abundance of caution | Seth's Blog

"Please don’t avoid appropriate caution. It matters to you and to the community. But seeking reassurance and peace of mind by trying to drive risk to zero doesn’t get you either one of them."

I agree with Seth Godin - to a limited extent. The human race would never have advanced from a constant state of merely surviving, if it wasn't for the risk takers. Those who try something different from "... but that's the way that it's always been done".

However, there are ways to mitigate your risk without missing out on the opportunities that cross our paths. If it's financial risk that concerns you, put your business structures in place before you take that leap of faith. It serves no purpose to try and erect a safety net after you have already jumped.

Follow this LINK to obtain more information.

Remember to subscribe using the button in this Blog.

Your inside source @ THE PRETORIA ATTORNEYS ASSOCIATION

noreply@blogger.com (Gareth) — Thu, 25 Feb 2021 13:27:00 +0200

The Pretoria Attorneys Association (PAA) is a voluntary association of attorneys, established in 1946, to facilitate and enhance an independent legal profession for the Tshwane Magisterial Jurisdiction, which broadly reflects the diversity of the Republic.

The Association is organised in various subcommittees to best represent members’ interests. Two fully functional offices are located at the Pretoria High Court and Magistrate’s Court to assist Attorneys and members of the public.

Speaking at the PAA Annual Golf Day

I am extremely proud to serve as the Chairman of the Property Committee and as a member of the Executive Committee of the PAA. Please follow this LINK for more.

Your ultimate Guide to COMMERCIAL PROPERTY FINANCE

noreply@blogger.com (Gareth) — Tue, 23 Feb 2021 12:17:00 +0200

Get the Ultimate Guide to

Commercial Property Finance South Africa

Click on Picture for Link

This Ultimate Guide to Commercial Property Finance South Africa was obtained From the Trust for Urban Housing Finance (TUHF).

I work with the very best Bond Originators in South Africa and I am happy to recommend them to any Developers, Investors, Buyers and others who want to source the best funding at the best interest rates.

I recommend:

Contact me for a personal introduction to Christeen or to Christiaan. I know that they will look after you.

My Law Firm (Delport van den Berg Inc.) is also on the Conveyancing Panels of every major Bank in South Africa, so I can help you with all your Property Finance questions.

Contact me at gareth@delberg.co.za and I will be happy to assist.

Do you really love your "LOVED ONES"? Really? Then why ......

noreply@blogger.com (Gareth) — Tue, 23 Feb 2021 11:41:00 +0200

Do you really love your "loved ones"?

Do you really? Really? If so, why would you allow your estate to depreciate by 50% or more on your death? Why would you allow your accounts to be frozen? Why would you force your wife/husband or children to have to sell the family home to pay the costs and taxes of your death?

Why would you do that to your loved ones, when there is absolutely no need to do so?

See the video below and PRESERVE YOUR LEGACY.

Did you know that you can simultaneously make your assets 100% creditor proof? If you're a business owner or investor, is this something that would be valuable to you?

Click on Image or go to https://youtu.be/pODcDv5kSmE

P.S. This is an older video (prior to Shepperson Attorneys absorption into Delport van den Berg Incorporated). Delport van den Berg has the most amazing Trusts and Estates department. Contact me if you would like to know more.

Please visit Elegant Corporate Services (Pty) Ltd for details about

free and discounted services and for a

30 minute FREE consultation.

Home Page

Bought or Sold a House - WHAT HAPPENS NEXT?

noreply@blogger.com (Gareth) — Mon, 22 Feb 2021 15:52:00 +0200

So you've bought or sold a house ... now what?

ALL YOUR QUESTIONS ANSWERED IN ONE VIDEO!

What is a Conveyancer?

What does the Conveyancing process involve?

What is the Deeds Office and what happens there?

What is likely to cause a delay?

Who are the Bond Attorneys or the Bond Cancellation (BC) Attorneys?

Tax compliance as part of the transfer of ownership ... really?

What is Prep? (Prep School or doomsday prepper!)

I thought the death penalty was abolished, so who is executed in the Deeds Office?

ALL YOUR QUESTIONS ANSWERED IN ONE VIDEO!

Click on the image or go to:

https://youtu.be/i1ehCfJhPoA

We have done a series of videos with Taurai Jack of M5 Real Estate (Pty) Ltd, known as M5 Property Addicts, about certain legal aspects of Property Investment and Property Law in general. The series starts with a look at the solid foundation that all serious Property Investors should establish, namely a solid business structure.

"The most important aspect of making money out of property is preserving and protecting both the property and the wealth that is created.

Follow this LINK for more on this topic.

Please see the BLOG ARCHIVE on this Blog for Links to all these Videos.

Please SUBSRIBE to this Blog for updates and please COMMENT on any of the topics that I discuss.

Thanks

Gareth Shepperson

Did I just include DR SEUSS in my MOST INSPIRATIONAL BOOKS?

noreply@blogger.com (Gareth) — Tue, 16 Feb 2021 09:16:00 +0200

What books have been influential in my life?

Well, I really enjoy biographies and history books. I also enjoy Malcolm Gladwell's books. I don't read much fiction anymore but I really enjoyed a wide range from Sydney Sheldon to JRR Tolkien, when I was younger.

More recently, I have enjoyed the more inspirational or motivational books like The Seven Habits of Highly Effective People and Rich Dad Poor Dad.

I now have twins (11 months old) and I must say that my absolute favourite inspirational book at the moment is ― Dr. Seuss, Oh, the Places You'll Go!

“You have brains in your head. You have feet in your shoes. You can steer yourself any direction you choose. You're on your own. And you know what you know. And YOU are the one who'll decide where to go...”

I would love to engage with the readers of this Blog, so:

What books have been influential in your life?

What books do YOU suggest that I read?

Rebosa takes EAAB to court!

noreply@blogger.com (Gareth) — Wed, 10 Feb 2021 09:44:00 +0200

Tony Clarke, chairman of Rebosa and MD of the Rawson Property Group

Click on image for the BIZCOMMUNITY Article.

The latest development in the seemingly never-ending soap opera that is the EAAB.