SecuBond

01/06/2026

LATENT DEFECTS, MISREPRESENTATION, SILENCE AND THE LIMITS OF THE VOETSTOOTS CLAUSE IN RESIDENTIAL PROPERTY

Article done by Rauch and Gertenbach Conradie Inc. Attorneys

Purchasing a residential property is often the most significant financial investment a person will make. Yet even after taking occupation, a buyer may discover defects that were not apparent during inspection.

Common latent defects include a leaking roof, unstable foundations, faulty wiring, plumbing that fails under pressure, hidden termite or pest damage, and non-compliant or unsafe structural work. Statutory defects, such as non-permitted building additions, lack of compliance with municipal building regulations, or failure to obtain occupation certificates, also fall within this category, as these may only become apparent during a municipal/expert inspection. These defects are not visible or discoverable upon reasonable inspection at the time of sale, and they can have serious financial and safety implications.

While the voetstoots ("as is") clause generally protects sellers against liability for such defects, this protection is not absolute. If a seller knew of a defect and deliberately remained silent, or actively misrepresented the property's condition, courts have held that the voetstoots clause offers no defence.

Voetstoots and Its Boundaries

The voetstoots clause means that the purchaser accepts the property with all its defects, both patent (visible to the naked eye) and latent (hidden and not easily discoverable). Purchasers are always responsible for patent defects unless the contract provides otherwise.

However, the protection afforded to sellers is not unlimited. In Speight v Glass and Another 1961 (1) SA 778 (D) at 782A, Fannin J held that:

"A seller who knows of the existence of defects in the thing sold, but deliberately refrains from disclosing them to the buyer, is guilty of fraud."

It was further held in Van der Merwe v Meades 1991 (2) SA 1 (A) that a seller loses the protection of the voetstoots clause if:

1. They were aware of the defect at the time of sale; and

2. They intentionally concealed it with the aim of misleading or defrauding the purchaser.

This is a high threshold, as the purchaser must show both knowledge and intent. Historically, many sellers avoided liability by denying fraudulent intent.

Silence as Fraud:

In Odendaal v Ferraris 2009 (4) SA 313 (SCA), the court held:

"Where a seller recklessly tells a half-truth or knows the facts but does not reveal them because he or she has not bothered to consider their significance, this may also amount to fraud."

Thus, where a seller knows of defects and deliberately remains silent, that silence may be fraudulent. Liability arises not only where a seller actively misrepresents facts, but also where they "craftily refrain" from informing the purchaser of defects, knowing the purchaser is ignorant of them.

The principle is simple: a seller who remains silent about a defect they know of, in circumstances where a reasonable person would speak up, is acting dishonestly. Under such circumstances, the voetstoots clause provides no shield.

Aedilitian Remedies: Protection for Purchasers

Where latent defects exist, the purchaser is not without recourse. Depending on the circumstances, the following aedilitian(common law) remedies may be available:

Actio Empti (Damages)

Purchasers may claim damages if the seller breached a warranty, acted fraudulently, or knowingly concealed defects.

Actio Redhibitoria (Repayment and Cancellation)

Where defects are so serious that the property is unfit for its purpose, the purchaser may rescind the contract and claim repayment of the purchase price plus interest.

Actio Quanti Minoris (Price Reduction)

If cancellation is not justified, the purchaser may claim a reduction in the purchase price. This requires expert valuation to show the difference between the actual value of the property and the price paid.

Conclusion

The voetstoots clause does not provide blanket immunity to sellers. South African courts have made it clear that where a seller knows of latent defects and either misrepresents the condition of the property or deliberately remains silent, they act fraudulently. In such cases, purchasers may claim damages, a price reduction, or even cancellation of the contract.

The law thus balances fairness: while buyers must beware and conduct inspections, sellers cannot hide behind dishonesty or silence. Fraud unravels all.

Article by: RUBEN MARITZ (LLB) Attorney
For more information contact Ruben at 044 6019900 or [email protected]

05/05/2026

Buying a House: What Costs Will You Pay, and When?

Article done by Conradie Inc. Attorneys

“It is a comfortable feeling to know that you stand on your own ground. Land is about the only thing that can’t fly away.” (English novelist Anthony Trollope)

With interest and home loan rates at their lowest since 2022, it’s no surprise that South Africa’s property market confidence level at the end of 2025 was sitting at a record high of 87%. That will have been boosted by the country’s positive economic outlook following Budget 2026, and by Budget 2026’s 50% increase in the primary residence exclusion (which should stimulate sales by reducing the CGT payable by sellers).

If you are a buyer about to put in an offer on a house, remember to budget for the various costs you’ll face over and above the purchase price. In all the excitement of your purchase (particularly if it’s your first house!) it’s easy to underbudget. But you really don’t want to risk any unpleasant financial surprises. If you do breach a term of the sale agreement by not paying something on time, you could even face cancellation of the sale and a damages claim.

Only with a proper budget and cash flow forecast can you be confident both that you really can afford to offer for the house you’ve fallen in love with, and that you’ll be able to pay everything you need to, when you need to.

Have a look at the list we’ve put together below and use it to prepare your own detailed cash flow forecast. Ignore anything that doesn’t apply to you and bear in mind that every buyer’s situation will be unique, so this is no more than a generalised checklist.

Costs payable before transfer
The deposit: Most sale agreements – often titled as an “Offer to Purchase” (OTP) until it’s accepted by the seller – require you to pay a deposit, usually 5% or 10% of the purchase price.
Bond/home loan initiation fee: This fee normally incorporates a valuation fee and is added to your loan, but check with whichever bank you use.
Homeowner’s insurance policy and life cover policy (if required by the bank): Be sure to provide for payment of the first premiums before bond registration.
Balance of the purchase price: If the deposit you paid and the bond you took out don’t cover the full price, you’ll need to pay the balance before transfer.
Transfer duty: Unless VAT applies to the sale, transfer duty is payable. This is a government tax payable via SARS before transfer. It applies to all property sales over R1,210,000, on a sliding scale linked to the sale price. This can be a substantial cost!
Transfer fees: The transferring attorney (conveyancer) charges fees based on a sliding scale linked to the sale price. Added to the account will be charges for F**A verification, deeds searches, postages and petties, other disbursements and the like.
Bond registration fees: If you take out a bond, the bank appoints an attorney to register it, with the fees calculated on the size of the loan and including the attorney’s fees, F**A charges and a prescribed Deeds Office registration fee.
Deeds Office fees: These are government charges for both transfer and bond registration.
Rates clearance: Your local municipality will require advance pro-rata payment of municipal rates before it issues the necessary clearance certificate.
Levy clearance: Similarly, if you are buying into a complex, the sectional title’s body corporate or Homeowners’ Association (HOA) will require pro-rata levy payments before issuing a clearance certificate.
Occupational interest (if applicable): If you take occupation before transfer, you need to budget for whatever occupational interest is provided for in the sale agreement.
Utility deposits: If required by your local municipality when opening up water and electricity accounts.
Moving costs: Don’t overlook these when budgeting!
Some of these costs are easily overlooked, but they can add up alarmingly. So, plan for them all before you put in your offer to purchase.

Ongoing monthly costs after transfer
Include bond instalments, municipal rates and taxes, levy payments (if you buy in a sectional title or HOA), utility charges, insurance premiums for the property and the contents, and so on.

One-off costs after transfer
If you plan to do alterations or repairs, redecoration, garden revamps, furniture replacement or anything similar, add these costs to your budgeting so you don’t suddenly run out of money and have to postpone them. For long-term planning, set aside a budget for ongoing home maintenance.

As always, we are here to assist, so let us know if you have any questions, need any further information, or would like help in creating a cash-flow projection specific to your purchase.

Disclaimer: The information provided herein should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact us for specific and detailed advice.

21/04/2026

26/03/2026

Transfer of property to Heirs

Article done by Rauch Gertenbach attorneys

Part 1:

When a person passes away, their estate, which includes all their assets and liabilities, must be distributed in accordance with their will and relevant legislation. Immovable property, such as a house, sectional title unit, farm or plot of land, may form part of the estate assets. This article will unpack the legal aspects involved in transferring such property from the deceased estate to the rightful heirs. Understanding the legislative principles can help executors and beneficiaries navigate the process with greater confidence and fewer delays.

The heir/s to whom immovable property must be transferred will be determined by the Will of the deceased or, if the deceased did not have a will, by the provisions of the Intestate Succession Act 81 of 1987. It's important to note that heirs do not automatically acquire ownership of immovable property upon the death of the deceased. Ownership is only transferred upon the registration of the property in the Deeds Office, facilitated by the executor and a conveyancer.

The estate administration process is regulated by the Administration of Estates Act 66 of 1965 and starts with reporting the death and the estate to the Master of the High Court, who then appoints an executor to manage the estate's administration. An executor will have been nominated by the Will of the deceased or by a nomination form signed by the intestate heirs in the absence of a Will.

Section 13 of the Administration of Estates Act provides that no person shall liquidate or distribute any assets in the estate of any deceased person except under letters of executorship granted by the Master. The nominated executor therefore has no authority to alienate or distribute any assets in a deceased estate before they have been appointed by the Master by virtue of Letters of Authority or Letters of Executorship.

The executor, once appointed, is responsible for:

Identifying and gathering all assets of the deceased, including immovable property.

Settling any debts and liabilities of the estate.

Preparing and submitting a Liquidation and Distribution (L&D) Account to the Master for approval.

Distributing the remaining assets to the rightful heirs in accordance with the will or the provisions of the Intestate Succession Act.

The liquidation and distribution account is sent to the Master's office for approval and must lay open for inspection at the Master's office, after the Master has examined it. The executor shall place a notice that the account will be so open for inspection by advertisement in the Government Gazette and in a newspaper circulating the district in which the deceased was ordinarily resident at the time of his death.

Section 42(1) of the Administration of Estates Act provides that the Conveyancer will need to lodge a certificate with the Registrar of Deeds, confirming that the transfer is in accordance with the liquidation and distribution account, which account has laid for inspection and that no objections thereto has been received. A transfer therefore cannot take place before the prescribed inspection period for the L&D has passed.

The Conveyancer's fees for attending to the transfer, costs for obtaining any required clearance certificates, and any additional applications that needs to be brought, shall be borne by the estate. If there is a cash shortfall in the estate, the heirs may elect to settle the shortfall or to sell the property. There is no transfer duty payable where immoveable property is transferred from the estate to heirs as these transactions are exempt from transfer duty.

Although any person can be nominated as the executor of a deceased estate, only a Conveyancer can attend to the registration of immovable property in the Deeds office. Rauch Gertenbach attends to the transfers of property in deceased estates where the firm is the nominated executor as well as in estates where the transfers are referred to us by independent executors.

Contact us at [email protected] or 044 601 9900 for any queries relating to deceased estate transfers or the administration of deceased estates. www.rgprok.com

Article by: Aleida Kraamwinkel

Attorney & Conveyancer / Prokureur & Aktebesorger

ACCESS CONTROL TRADITIONAL VALUES & Litigation, Estates and Commercial Specialists in the Southern Cape. EXCELLENCE IN LAW Our Longevity Value Statement Want to read our Article page for extra information? Go to Articles Want to read our Article page for extra information? Go to Articles PRACTICE AR...

09/03/2026

How to Clear Your Name After a Default Judgment Against You: Rescission of Judgments

Article done by Boshoff Attorneys

Most people only become aware that a default judgment has been granted against them when the sheriff arrives with a warrant of ex*****on or when their credit applications are unexpectedly declined. A default judgment is usually issued when a defendant fails to enter an appearance to defend or does not attend trial, and in the Magistrates’ Court, this is regulated by Rule 12. The consequences are severe: adverse credit listings, attachment of assets, and, in some cases, ex*****on against property. A default judgment remains valid for thirty years, which means taking corrective action is essential.

Rule 49 provides a mechanism for applying to have such a judgment rescinded. Any party to the proceedings, or anyone affected by the judgment, may bring an application within twenty days of becoming aware of it. The court has a discretion to rescind the judgment if good cause is shown, and once rescission is granted, the matter proceeds as if no judgment had ever been entered. The defendant is then required to file a plea within the time periods set out in the rules. The effect of the rescission is that the action proceeds as if the judgment were not given, and the defendant must file a plea (within a time stipulated by the court rules).

Immediate Challenges Faced by an Applicant

An applicant for rescission usually faces two immediate challenges. The first relates to the time limit: the applicant must explain how and when the judgment came to their attention, and why the application is being brought only at that stage. Because a party is deemed to have knowledge of the judgment ten days after it is granted, any application brought outside the twenty-day window must be accompanied by a proper explanation and, if necessary, an application for condonation.

The second challenge is explaining the default itself. The applicant must satisfy the court that the default was not wilful and that, had they been aware of the proceedings, they would have taken steps to defend them. This explanation must be set out fully in the founding affidavit.

Requirement of a Bona Fide Defence

The court will also look at whether the applicant has a bona fide defence with some prospects of success. At this stage, the court does not determine the merits in detail, but it must be clear that there is a genuine, triable issue between the parties. This requirement flows from the principle of audi alteram partem, which is central to the idea that every party is entitled to be heard before judgment is given.

Rescission Under the Common Law

Apart from Rule 49, the common law also permits rescission where a judgment was obtained fraudulently, as a result of a mistake in law, or due to a procedural irregularity. Such applications must be brought within a reasonable time and must similarly be supported by a full explanation.

Court Considerations and Next Steps After Rescission

Once the application has been filed together with all supporting documents, the court will consider the credibility of the applicant’s explanation, the reasons for any delay, the extent of the prejudice to the judgment creditor, and the strength of the defence raised. If rescission is granted, the applicant should ensure that their status is updated with the credit bureaus and must prepare to defend the matter properly on the merits. If the defendant again fails to defend, the plaintiff may apply for another default judgment.

In summary, clearing one’s name after a default judgment is achievable, but it requires prompt action, a candid explanation, and a genuine defence to the claim. A well-prepared application not only restores the applicant’s ability to defend the matter but also upholds the fundamental right to be heard, ensuring that the dispute is resolved on its merits rather than by default.



While every reasonable effort is taken to ensure the accuracy and soundness of the contents of this publication, neither the writers of articles nor the publisher will bear any responsibility for the consequences of any actions based on information or recommendations contained herein. Our material is for informational purposes.

27/02/2026

Township Property: An Untapped Market?

Article done by Boshoff attorneyes

Much has been written about the residential property markets in South Africa’s iconic cities: Johannesburg, Cape Town, and Durban. But what of the largest townships in or adjacent to each of these cities: Soweto, Umlazi, and Khayelitsha?

While the glossy brochures and media headlines often focus on city skylines and prime real estate, there’s a vibrant pulse of urban transformation that often beats strongest in the townships on their periphery.

Townships like Soweto, Umlazi, and Khayelitsha reflect South Africa’s urban reality in ways that city skylines cannot. While each carries the weight of inequality and historic disadvantage, they are also centres of growth, resilience, and entrepreneurship.

Soweto’s scale and maturity give it an edge in income and property value, but Khayelitsha’s rapid growth highlights the magnetic pull of the Western Cape. Understanding these dynamics is critical because the future of South Africa’s property market is as much about our townships as it is about our cities.

These sprawling communities are home to significant portions of the urban population, and theirs are the untold stories frequently omitted from mainstream property narratives.

Lightstone used the three provinces with the highest GDP, and then identified the largest cities in each before selecting the most populous township in each. Data was then examined to compare the townships’ population size, household income, property values, and property transfer activity.

How many people live there?

Soweto, near Johannesburg, is South Africa’s most iconic township and is home to around 1.5 million people. Its roots can be traced back to the early 1900s before being formally named as South Western Township in 1963, and it’s known today for its vibrant cultural life and thriving tourism industry.

Umlazi, located in Durban, has around 486,000 residents and features a mix of urban development and poverty. Umlazi was created in the 1960s and is Durban’s largest township.

Khayelitsha, on Cape Town’s outskirts, is one of the fastest-growing townships and has around 520,000 residents. The township is characterised by informal housing and strong grassroots activism, and it’s important to bear in mind that Khayelitsha is the youngest of the three townships, founded only in the mid-1980s as an apartheid-era relocation zone.

All three reflect South Africa’s complex socio-economic legacy, marked by inequality, resilience, and community spirit. Despite challenges like unemployment and crime, these townships are hubs of innovation, culture, and emerging entrepreneurship, and are playing an important role in the country’s evolving urban landscape.

Adults make up 66% of Umlazi’s population, lower than Soweto and Khayelitsha (both 75%). This may be because many young adults leave Umlazi for jobs in Durban, Gauteng, or Cape Town. Soweto and Khayelitsha, being close to major cities, keep more working-age residents.

According to Lightstone’s estimates, Umlazi’s adult population grew by 10% over the last ten years, behind Soweto at 25% and well behind Khayelitsha at 40%, which probably reflects the ongoing inward migration into the Western Cape from other provinces.

Household income

Apart from being the oldest township with the largest population, Soweto is also the wealthiest of the three townships when it comes to household income. Khayelitsha is the youngest and the poorest.

Around 25% of Soweto’s households have income exceeding R13,000 a month, similar to Umlazi, but significantly in excess of Khayelitsha. Soweto has just more than 20% of households earning less than R6,500 a month, compared to just under 60% in Khayelitsha and around 45% in Umlazi.

So, that’s how the townships stack up against each other, but how do they compare to their nearby cities? As anticipated, the cities are significantly wealthier. For example, in contrast to the 25% of Soweto’s residents earning more than R13,000 a month, Johannesburg’s proportion is more than 70%.

However, both Soweto and Johannesburg record equally small amounts of households earning less than R3,250 a month.

Property values

The average property values mirror, unsurprisingly, household income patterns. Soweto (R585,000) and Umlazi (R560,000) are relatively close, while Khayelitsha’s average property value trails at R350,000.

The ratio of households to formal deeds-registered property is more favourable in Soweto (2.25:1) than Khayelitsha (3.3:1) and Umlazi (3.2:1).

According to various media reports, Soweto has seen government-driven upgrades, middle-class housing developments, and even lifestyle estates, while Umlazi has formal housing areas like Z and BB sections, with government and private property investment.

Khayelitsha, on the other hand, is dominated by informal or lower-income RDP (Reconstruction and Development Programme) housing. Remember, Khayelitsha is relatively new compared to Soweto and Umlazi, and its rapid growth post-1994 comes from inward migration, and those looking for work seldom have the financial resources to enter the formal housing market.

The majority of homes in Khayelitsha are valued at between R200,000 and R400,000, while the majority in Soweto are valued between R400,000 and R700,000, and between R400,000 and R600,000 in Umlazi.

At the upper end, Soweto has 1,600 properties valued at more than R1 million, while Khayelitsha has none.

Interestingly, the average price of a property in Johannesburg is three times the average in Soweto, while Durban’s average property price is double that of Umlazi, and the gap between Cape Town and Khayelitsha is much more pronounced at seven times. This is not surprising, as Khayelitsha is the poorest of the three townships, and property prices in Cape Town have been surging in recent years as the Western Cape attracts people from other provinces.

Property activity

Property transfers in both Soweto and Umlazi have been trending downwards over the past decade, despite the occasional rally, but transfers in Khayelitsha were on the increase from 2018 to 2022, before falling each year since then.

Despite the trend, though, Soweto still accounts for most transfers by some distance.



WRITTEN BY HAYLEY IVINS-DOWNES

Hayley Ivins-Downes is a property sales specialist.



While every reasonable effort is taken to ensure the accuracy and soundness of the contents of this publication, neither writers of articles nor the publisher will bear any responsibility for the consequences of any actions based on information or recommendations contained herein. Our material is for informational purposes.

24/02/2026

“Proud to share this client review!”

To whom it may concern

Today I just want to thank the amazing 2 women I have ever met. Yvonne and Angelique. Thank you so so much for helping and gidding me when my own bank did not even care and dragged the process of securing a bond to more than 3 weeks. I inquired and not even 3min later got a call to assist.The process was made so effortless and I was kept in the loop all the time. The way you made me feel and treated me,not like a client but family.The constant calls from me to ask if everything is ok was handheld so well as i am a first home buyer. So I stress a lot about small things. I was at ease when they explained it step by step and more to me.
You don't ever get client service that goes above and beyond to help.
Secubond seriously i thank you from the bottom of my heart for making my dreams come true in more ways than you can imagine. You have 2 amazing women that keep your company name high and on top way above the others out there.
Well done Yvonne and Angelique for going the extra 10000000000000000000 miles.

17/02/2026

CSOS or the High Court? A 2025 judgement every HOA member should know about

Article done by Millers Inc

Community schemes such as homeowners’ associations (HOAs), sectional title schemes and lifestyle estates are now a defining feature of South African property ownership. With shared rules, levies and common facilities come inevitable disputes. A recurring and important legal question is this: “Must disputes between homeowners and homeowners’ associations first be referred to the Community Schemes Ombud Service (CSOS), or can parties approach the High Court directly?”.

In October 2025, the Supreme Court of Appeal (SCA) provided authoritative guidance on this issue in Parch Properties 72 (Pty) Ltd v Summervale Lifestyle Estate Owners’ Association and Others. This judgment offers welcome clarity for homeowners, trustees, developers and legal practitioners alike.

The Background: A Dispute Within a Lifestyle Estate

The dispute arose within a retirement lifestyle estate in the Western Cape. A developer sought to have an adjacent development formally incorporated into the existing homeowners’ association by amending the association’s constitution. When the required majority of members refused to approve the amendment, litigation followed.

Among other issues, the developer asked the High Court to declare that the refusal to amend the constitution was unreasonable — a form of relief expressly contemplated in section 39 of the Community Schemes Ombud Services Act 9 of 2011 (the CSOS Act).

Certain homeowners opposed the application, arguing that the High Court lacked jurisdiction. Their position was simple: because the CSOS Act provides a specialist dispute-resolution mechanism, the matter had to be referred to the Ombud first, and the High Court could only become involved on appeal or review. This jurisdictional challenge ultimately reached the Supreme Court of Appeal.

The Role of CSOS: A Specialist but Not Exclusive Forum

The CSOS Act was enacted to provide an accessible, informal and cost-effective mechanism for resolving disputes within community schemes. It empowers the Ombud to grant wide-ranging relief, including orders declaring conduct or governance provisions unreasonable. Importantly, however, the Act does not expressly state that the High Court’s jurisdiction is excluded.

The SCA reaffirmed a long-standing constitutional principle: there is a strong presumption against the ouster of the High Court’s jurisdiction. Parliament must use clear language if it intends to deprive the High Court of its power to hear a category of disputes.

The Court held that the CSOS Act was designed to co-exist with the courts, not to replace them.

A Choice of Forum, Not a Jurisdictional Barrier

The SCA made it clear that parties to a community-scheme dispute generally have a choice of forum:

• They may approach the CSOS Ombud, particularly where disputes are routine, fact-based or capable of inexpensive resolution; or
• They may approach the High Court directly, even as a court of first instance.

Crucially, the Court rejected the notion that “exceptional circumstances” are required before the High Court may hear such matters. The High Court’s jurisdiction exists by default and is not dependent on the Ombud first declining to act.

In the words of the SCA, the fact that the Ombud enjoys wide statutory powers does not imply that the High Court’s jurisdiction is excluded.

But There Is a Catch: Costs and Judicial Discretion

While confirming the High Court’s jurisdiction, the SCA echoed earlier warnings from the courts. Litigants should not lightly bypass CSOS where the dispute is well-suited to that forum.

Courts retain a discretion to express their disapproval through cost orders, particularly where parties rush to court with matters that could have been resolved more efficiently by the Ombud. In appropriate cases, even a successful litigant may be penalised in costs for choosing the wrong forum.

Why This Judgment Matters

This decision has significant practical implications:

• Homeowners and trustees now have clarity that approaching the High Court is not procedurally barred simply because CSOS exists.
• Developers and associations can litigate complex, high-value or precedent-setting disputes without first navigating the Ombud process.
• Legal advisers can assess forum strategy based on substance, urgency and complexity — not jurisdictional fear.

At the same time, the judgment reinforces the policy objectives of the CSOS Act: disputes should be resolved proportionately, with due regard to cost, accessibility and the interests of the broader community.

Final Thoughts

The SCA’s ruling strikes a careful balance. It preserves access to courts — a cornerstone of constitutional justice — while recognising the valuable role played by specialist statutory bodies such as CSOS.

For participants in community schemes, the message is clear: CSOS is an important option, but it is not a gatekeeper to the courts.

If you are involved in a dispute within a homeowners’ association or community scheme, early legal advice is essential to determine not only the merits of your case, but also the most appropriate forum in which to pursue it. Contact us to assist you.