Real Estate Investor Magazine South Africa Dec/January 2020 | Page 11

PROPERTY ADVICE
Bond originators
Q
What do bond originator
companies do? — and what
documents will I need to provide
for a Bond Originator?
MEYER DE WAAL
Director at MDW Inc.
A W
hen applying for a home loan, a financial
institution will require a completed application
form with the supporting documents to the
financial institution [bank]. These documents will be; a
consent that the bank can obtain your credit report, proof
of your income, bank statements for the past 3 months,
your identity documents and proof of residence. If you are
self-employed or a Company or Trust purchasing, more
comprehensive financial documents must be provided.
Your own bank with whom you have banked with for
many years may not give you the best home loan and interest
rate. You need to shop around for the best home loan deal. It
can be a tedious task to prepare the same application to more
than one financial institution/bank.
A mortgage originator can multi-submit your application
and will be updated with which bank will have the most
aggressive home loan-lending campaign on the “go” at
the time of your application. A good example is a recent
application that was submitted to five banks. Three banks
declined, but two accepted the home loan.
Expiration of a
lease agreement
Q
What are a tenant’s rights and
obligations when a lease expires, and
the Landlord allows the tenant to carry
on staying on the property?
CILNA STEYN
Director at SSLR Inc.
A A
lease agreement will generally terminate on the
date as agreed to by the parties. However, should
section 14 of the Consumer Protection Act (CPA)
apply to the lease agreement, the lease agreement will
automatically continue on a month to month basis. It
ends on the same terms and conditions set out within
the lease agreement, unless the landlord informs the
tenant 40 – 80 business days prior to the impending
termination date that the agreement will terminate on
the agreed termination date. In other words, if the lease
agreement is governed by the CPA the lease agreement
will automatically continue on a month-to-month basis,
leaving the tenant with all the rights and responsibilities
in terms of the original lease agreement.
At present within our law there is no legal
requirement for a lease agreement to be in writing.
The effect of this is that should the landlord allow the
tenant to remain in occupation after the termination
or cancellation of the lease agreement, the terms
of the lease agreement will remain in full force and
effect during the further period of occupation. This
agreement can then be terminated by either party,
by giving the other one month’s written notice of
termination to the other party.
In a case where the agreement was terminated by
giving the required notice and on termination the
tenant remains in occupation, continues to make
rental payments and the landlord allows occupation.
The actions of the parties will be considered to be
tacit reinstatement of the lease agreement. The
effect of this will be exactly the same as set out
within the paragraph above, in other words the
lease agreement will remain of full force and effect
and terminable by one month’s written notice of
termination to the other party.
It is advisable for the parties to conclude a written
addendum in respect of the extended period of
occupation as it is rarely a good idea to labour under
a verbal or tacit lease agreement.
SA Real Estate Investor Magazine DECEMBER/JANUARY 2020
9