Real Estate Investor Magazine South Africa September/ October 2019 | Page 44

LEGAL
Fourie explains that landlords will be held legally liable if
they fail to comply with the new adjustments to the act, paying
fine or a jail sentence if they do not adhere to the laws. ‘They
will also need to keep in mind the provisions of the Rental
Housing Act, which will remain in force, as well as the CPA. And
these legal complexities will make it all the more important
for landlords to appoint reputable, reliable, knowledgeable,
qualified and legally registered rental management agents to
assist them and ensure they remain compliant,” says Fourie.
Landlords and tenants are advised
to be aware of the following possible
implications:
Leaser agreements between parties will
have to be in writing and legally enforceable.
Before the document is signed, the tenant
must understand all sections of the lease,
definitions and explanations. It is the
responsibility of the landlord to ensure that
the tenant understands the lease agreement
thoroughly.
Landlords must ensure that the property
is habitable and in line with the Rental
Housing Act.
Maintenance of the rental property will fall
under the responsibility of the landlord.
Landlords will have to ensure that there is
proper access to water and electricity.
A court order will be required to deny the
tenant access to the rental property.
An inspection must be carried out by
both the tenant and the landlord on the
commencement of the lease. If the landlord
is not present during this inspection, the
tenants deposit cannot be used for repairs
or damages. The tenant’s deposit cannot
be withheld when they vacate the rental
property.
When a tenant ends their lease, the landlord
must return the deposit back to the tenants
and the interest earned on this deposit must
also be paid to the tenant within seven days
of the expiration of the lease. The returned
amount of the deposit is dependent on any
deductions for damages.
HERITAGE IMPLICATIONS
CASE STUDY: BO-KAAP
From an architectural and land perspective, the concept of
heritage is important in South African law and is applied
to the real estate industry. In recent developments, the Bo-
Kaap, known for its rich cultural and historical value has been
gazetted as a Heritage Protection Overlay Zone (HPOZ). The
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SEPTEMBER/OCTOBER 2019 SA Real Estate Investor Magazine
Bo Kaap is also known as the earliest established Muslim
community in South Africa and therefore has a plethora of
history.
The City of Cape Town’s Mayoral Committee Member for
Spatial Planning and Environment, Marian Nieuwoudt explains
the implementation of the HPOZ. “The HPOZ also allows the
City to impose conditions to the approval to ensure that the
heritage value of the building or site is protected or enhanced.
The City may also require the applicant to amend the plans,”
she said.
Investors and developers are advised that the newly
applied HPOZ laws will not entirely prevent development. Any
proposed new development will have to undergo a checklist of
requirements based on the impact it may have on the heritage
of the area before being approved.
Impact on investors
The City of Cape Town explains that developers and
investors looking into the Bo-Kaap area must take note of
the implications of the HPOZ. “From now on development
applications for properties within the Bo Kaap will be assessed
more critically with an additional focus on the impact that the
development proposal will have on the heritage value of the
building and site and on the area.”
The HPOZ outlines the following:
Grade IIIA properties have high heritage
significance, architectural value and are
directly associated with the socio-historical
story of the Bo-Kaap.
Grade IIIB properties are described as
landmark buildings or spaces, which are
common in the Bo-Kaap.
Grade IIIC properties are typical examples
of Bo-Kaap architecture that create setting,
character and context of the neighbourhood.
Structures which are older than 60 years,
considered Grade III structures and appear
run down could be restored and rehabilitated
to increase or improve their heritage value.
The implementation of the HPOZ is in order to prevent the
‘inappropriate’ development and alterations within the area
and to provide clarity to existing homeowners on what is
allowed in terms of alterations, maintenance and renovations.
Investors who own existing property in the area are advised
to be aware of the proposed amendments and the allocation
of the Bo-Kaap as an HPOZ. Not only does the HPOZ provide
regulations for the Bo-Kaap but extends to the Table Mountain
National Park, including the northern green verges to the
northwest of Strand Street along with Buitengracht between
the intersections with Carisbrook and Strand Street.