Commercial Property Law
We assist businesses in all areas of Commercial Property Law
The field of commercial property law encompasses a variety of other areas of law, including commercial law, banking and finance law, regulatory and compliance law to name a few, all of which can apply in the context of commercial property. Where there is a property element to a transaction, in particular property used for commercial purposes, it is important to use advisors who understand the intricacies of property to ensure that your interests are fully protected.
Our services include due diligence investigations, sale of letting enterprises, sale of shares, subscription agreements, shareholders agreements, corporate restructuring processes, leases, service level agreements, joint venture agreements, development agreements, facility agreements, mergers and other related commercial agreements where there are property aspects at play.
Every day properties are being bought and sold, leased and utilised whether as homes, workplaces or businesses. Accordingly, by its very nature, property has potential and with this potential comes rights and obligations to be managed and regulated.
- Ashleigh Dawson, Caveat Panel Member
Commercial Property Laws & Regulations
Laws and regulations applying to commercial property transactions will depend on the nature of the transaction, the identity of the parties and the type of property involved. However, broadly speaking, the legislation that should be borne in mind when dealing with commercial property transactions includes:
- The Companies Act, 2011
- The Competition Act, 1998
- The Alienation of Land Act, 1981
- The Consumer Protection Act, 2008
- Property Practitioners Act, 2019
Commercial Property Developments
An important consideration when concluding a development agreement is the division of risk between the relevant parties. Consideration should be given to the following:
- The standards with which the developer must comply.
- The appointment of the building contractor and members of the professional team.
- The target date for completion and whether there are any additional requirements for completion.
- The client’s right to inspect the progress of the development.
- Variations to the development.
- Dispute resolution mechanisms.
Frequently asked questions on Banking & Finance Law
- 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.