Legal

HPASA legal matters are attended to by Smith Tabata Buchanan Boyes; a property law firm of great distinction. Smith Tabata Buchanan Boyes is held together by a group of solution driven property law attorneys, who provide their clients with national access to affordable legal services in and around South Africa.

They have established an excellent reputation for providing practical advice on a wide range of legal matters and are known to real estate professionals as a leading conveyancing and property law firm.

Subscribe to the bi-monthly HBH newsletter with contributions by these esteemed property law attorneys.

Property Law

Buying or selling a house is a step most people will encounter at least once in their lives. The process can be complicated and will always involve the services of a property law firm. Smith Tabata Buchanan Boyes are on hand to offer legal assistance and advice of a very high calibre ensuring accuracy and speed of transfer, as well as peace of mind.

They are a dedicated team of highly skilled property law attorneys who will always offer professional service at every turn. Through delivering expert advice and assistance, this property law firm has grown into one of the largest in South Africa, simply by creating a level of trust and professionalism with both buyers and sellers.

Smith Tabata Buchanan Boyes offer consistent feedback and progress reports throughout all property law cases they assume. These property law attorneys understand the importance of being informed and thus offer their assistance and advice openly via the HBH newsletter and through the archives below.

Read more below about property law from Smith Tabata Buchanan Boyes.
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October 2011
IS YOUR ZONING REALLY IN ORDER?
Long usage cannot condone zoning contravention
 
In the hospitality industry, zoning issues are a real concern. Whether you are running a restaurant, bed and breakfast, hotel or other business from a premise, the property must be zoned for such use.

Incorrect Zoning
If it is not correctly zoned, then your hard-earned profits will be applied towards penalty payments and the business may be ordered to discontinue activities until (and if) the re-zoning application has been successful. And do not acquiesce in appearance: long usage of premises in contravention of zoning regulations remain unlawful and open to penalty.
 
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August 2011
DIRECT MARKETING AND THE CPA:
THE DO'S AND DON’T'S
 
We all know that marketing is a crucial element of most successful businesses. But how, now that the new Consumer Protection Act (CPA) places substantial limitations on what is termed 'direct marketing'?

What it is all about
In its effort to protect consumers who, when faced with a very persuasive marketer, finds it hard to say 'no', the Act places limitations on direct marketing.

Direct marketing occurs when a consumer is approached - either in person, by mail or via electronic communication (for example, using telephone, fax, SMS or e-mail) for the direct or indirect purpose of:

promoting or offering to supply goods or services in the ordinary course of business to the person ; or
• requesting the person to make a donation.
 
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June 2011
NOW IS THE TIME TO ADJUST YOUR CANCELLATION POLICY
STBB | SMITH TABATA BUCHANAN BOYES
 
The provisions of the Consumer Protection Act (the Act) finds extensive application in the hospitality industry as members of the industry provide a service to the general public, i.e. the everyday user of the various facilities offered by this industry.

Canceling Reservations or Bookings

Consumers are expressly granted the right to cancel any advance reservation or booking and a service provider can therefore not disallow a consumer the right to exercise this right. The service provider may require that a deposit is paid upfront and may, in addition, impose a reasonable charge for the cancellation (except where the cancellation occurs as a result of death or hospitalisation).
 
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April 2011
DO YOU USE COMPETITIONS TO ATTRACT CUSTOMERS? WHAT THE CONSUMER PROTECTION ACT SAYS
STBB | SMITH TABATA BUCHANAN BOYES
 
It’s not so simple any more. The Consumer Protection Act became fully operational on 01 April 2011 and deals specifically with promotional competitions by imposing a series of requirements for:
(i) What should be included in competition rules; and
(II) What information and documentation should be retained after the competition was finalized

A person conducting a competition needs to know, amongst other things, that:
 
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February/March 2011
WASTED COSTS WHEN A BOOKED FUNCTION IS CANCELLED: The New Consumer Act Says …
By Hanlie Kotze, STBB | SMITH TABATA BUCHANAN BOYES
 
Cancellation of a booked event can cost a caterer, hotel or any other venue facility a great deal in the way of wasted time and costs. Against this background, those in the hospitality industry may find it alarming that the Consumer Protection Act, which will become fully operative on 01 April 2011, affords consumers the right to cancel any advance bookings and reservations.

What recourse is there for the service provider who suffers a loss as a result of such a cancellation?
Section 17 of the Act allows a supplier to require payment of a reasonable deposit when a booking is made and to impose a reasonable penalty in respect of the cancellation of the booking.

What is a reasonable deposit and penalty?
 
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December 2010
BOOKING CANCELLATIONS - WHAT THE CONSUMER PROTECTION ACT SAYS
By Maryna Botha, STBB SMITH TABATA BUCHANAN BOYES
 
From the point of view of the hospitality industry, many of the provisions of the new Consumer Protection Act will have a direct impact on the day-to-day running of businesses.

Postponed
Considering that the implementation date of the Act has been postponed to 1 April 2011, the days to full implementation are numbered and it is necessary to acquaint oneself with the impact that the Act will have on a business’ daily interaction with clients.

Cancel Bookings & Orders
One of the more far-reaching provisions of the Act is the consumer’s right, under certain circumstances, to cancel advance bookings and orders.

Up to now, businesses in the industry usually dealt with the risk of a booking cancellation...
be it because the guest changed plans at the last minute on a whim; or
as a result of accidental double-booking or for more serious reasons

...by agreeing upfront that a penalty would be payable or that the client would lose his/her deposit in the event of a late cancellation.

Will this still apply when the Consumer Protection Act is implemented?
 
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October 2010
HEED THE NEW LIFT & ESCALATOR REGULATIONS
Effective from 30 November 2010
 
New safety regulations relating to lifts, escalators and passenger conveyors were published in the Government Gazette (335613, Notice 828) on 17 September 2010 and will come into operation on 30 November 2010.

GNR 828 Lift Escalator and Passenger Conveyor Regulations 2010 - click here

All Businesses

All businesses - body corporates, restaurants, guesthouses, hotels, shopping centres and the like - that have such conveniences installed at their premises need to ensure that they are compliant in time.
 
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August 2010
NON-RESIDENT PURCHASERS MUST BE CAUTIONED NOW!
What will you need should you intend to repatriate your investment later on
By Maryna Botha, STBB | SMITH TABATA BUCHANAN BOYES
 
Proceeds
Most property practitioners and investors are aware of the fact that a non-resident seller may take the proceeds from the sale of his/her house out of South Africa (repatriate) after:
• any sums still owing under a mortgage bond over the property have been paid; and
• the non-resident’s Capital Gains Tax liability was settled with SARS.
 
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June 2010
WHAT THE CONSUMER PROTECTION ACT BRINGS
By Maryna Botha, STBB | SMITH TABATA BUCHANAN BOYES
 
The Consumer Protection Act 68, 2008 (‘CPA’) was signed into law on 24 April last year. Some chapters of this Act became effective on 25 April of this year whilst the remainder (and bulk) of the provisions will become effective in October this year (unless the Minister applies for the maximum 6 month extension provided for in the CPA).

Consumer is King
The Act is fittingly heralded as introducing the ‘Consumer is King’ era and it undoubtedly expands the areas in daily transacting where consumer protection is offered, improves the level of protection and invites consumer participation by introducing new tribunals where complaints can be lodged and allowing consumer groups to act on behalf of the individual consumer in class actions.
 
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RENTING OUT TO WORLD CUP VISITORS? Consider the legalities...
By Annetjie Van Rooyen of STBB Smith Tabata Buchanan Boys
 
Ever since the announcement in 2004 that South Africa would host the Soccer World Cup in 2010, the tourism and business industries have shown as much excitement as the local soccer fans at the prospect.

Rent or Not?
Homeowners in host cities have seen a possibility of making a little profit by renting out their homes to visitors. Now that the World Cup is imminent, many homeowners are still unsure whether or not to plunge in and rent out.
 
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THE PHASING OUT OF CLOSE CORPORATIONS
 
Do you have a business in a close corporation? Then you need to know how the new Companies Act will affect close corporations.

New Companies Act
The new Companies Act 71, 2008 was signed into law on 08 April 2009 and is expected to become operational (and replace the current 1973 Act) in April 2010.
 
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AMENDED TAX LAWS OFFERS RELIEF TO SOME
The 2009 Taxation Laws Amendment Act came into operation on 30 September 2009.
 
One of the provisions of this Act relates to the attractive possibility to transfer a domestic residence that is held in an entity (such as a company, close corporation or trust) free from any tax liability.

In the following paragraphs, we will briefly look at the legislature’s motivation for these new provisions as well as to their application.

SARS’ Concerns
Prior to 2001, many individuals used entities as vehicles in which to purchase their residential homes.
 

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