Commercial Property Lawyers | south africa

• The identity of the parties and the property.
• The purchase price and payment terms, including any security to be provided in respect of the purchase price.
• Either party’s ability to terminate the agreement.
• Warranties and indemnities, particularly limitations of liability .

• The rental amount and related costs.
• The term of the lease and whether there is an option to renew, including the terms of such renewal.
• The right to sub-let the leased premises.
• The right to terminate the lease.
• Responsibilities of both the landlord and the tenant.

• Once a property is sold, the matter is handed over to the transferring attorneys for purposes of transfer. Generally speaking, and unless otherwise agreed, the seller is entitled to appoint the transferring attorneys.
• The transferring attorneys –
  • collate the necessary information from the parties;
  • apply for rates clearance figures for purposes of obtaining a rates clearance certificate from the applicable local authority;
  • apply for levy clearance figures for purposes of obtaining a levy clearance certificate in the case of a sectional title property;
  • apply for a transfer duty receipt from the South African Revenue Services where transfer duty is payable, or an exemption certificate where VAT is payable;
  • liaise with the bond cancellation attorneys and the bond attorneys;
  • procure the delivery of all compliance certificates by the seller; and
  • prepare the necessary transfer documents for signature by the seller and the purchaser.
• When the transferring attorneys, the bond cancellation attorneys and the bond attorneys are ready to proceed, they will simultaneously lodge the deeds with the relevant deeds office.
• Following the process in the deeds office, registration of the transfer, cancellation of any existing mortgage bond and registration of the new mortgage bond, if applicable, will take place.
• The transferring attorney will prepare a final statement of account for both the purchaser and the seller and pay out the proceeds, if any, to the seller.
• The title deed and mortgage bond deed are delivered to the transferring attorneys and the bond attorneys respectively.
• Where the property is subject to a mortgage bond, the title deeds are kept by the mortgage bond holder.

Commercial property law governs the legal issues involved in owning, leasing, buying, selling, and developing property used for business purposes – offices, retail, industrial, and mixed-use premises, as opposed to residential property. It covers matters like sale and purchase agreements, commercial leases, due diligence on title and zoning, mortgage bonds and other security, and the regulatory approvals needed for development or change of use. For most businesses, commercial property law shows up either when negotiating a lease for premises or when a property forms part of a larger corporate or investment transaction.

A commercial property law firm advises businesses, landlords, tenants, developers, and investors on the legal side of acquiring, leasing, financing, developing, and disposing of commercial property. Typical work includes negotiating and drafting sale agreements and leases, conducting title and zoning due diligence, advising on sectional title and body corporate matters, structuring property-holding entities, and managing the registration process at the Deeds Office. Because commercial property deals often sit alongside financing, tax, and corporate structuring questions, this work is rarely handled in isolation from those other specialisms.

Commercial property investment law covers the legal work involved in acquiring property (or a portfolio of properties) purely as an investment, rather than for owner-occupation – including structuring the acquisition (directly, through a company, or via a property fund or REIT structure), due diligence on existing leases and tenant covenants, financing and security arrangements with lenders, and the tax treatment of the investment. Investors also need to consider ongoing obligations, such as compliance with body corporate or landlord obligations, and the legal steps required to exit the investment when the time comes.

Commercial property lease law governs the rights and obligations of landlords and tenants under a lease of business premises  – distinct from the more consumer-protective rules that apply to residential tenancies. Key terms in a commercial lease include the rental amount and any escalation clause, the lease term and renewal options, whether the tenant may sublet or cede the lease, the circumstances in which either party can terminate, and how maintenance, insurance, and other landlord and tenant responsibilities are allocated. Because commercial leases are negotiated rather than governed by protective consumer legislation, getting these terms right at the outset matters more than it would for a residential lease.