What is a “transaction” for transfer duty purposes?
According to reports, given current low interest rates, there have been an uptick in property transactions. Therefore, it is worthwhile considering the potential impact of any transfer duty taxes to be imposed on such transactions. The Transfer Duty Act imposes a transfer duty on the value of any property acquired by any person by way of a transaction, or in any other manner, or on the value by which any property is enhanced by the renunciation of an interest in or restriction upon the use or disposal of that property. For this reason the underlying concept of acquisition and important definitions in establishing whether there is a liability for transfer duty must be considered. The following concepts are key elements: “acquisition”, “date of acquisition”, “fair value”, “property”, “residential property”, “residential property company” and “transaction”. The last of the concepts, being a “transaction”, requires special attention. What constitutes a “transaction” A “transaction” includes not only an acquisition by way of purchase, donation, exchange, or any other modes of acquisition, but also any act whereby the value of the property is enhanced through the renunciation of any other person’s interest in, or restriction upon, the use of or disposal of the property. Furthermore included in this definition are transactions involving the acquisition or renunciation of registrable personal servitudes. A positive personal servitude is where the owner of the land burdened by the servitude must allow the holder of the servitude to exercise some right or benefit over the land in question. Examples include rights of usufruct, habitation, usus, right of way, right to collect firewood, power line servitudes, etc. A negative personal servitude prohibits the landowner from exercising a right that is accepted as inherent in the ownership of the property. In other words, these types of servitudes amount to registrable restraints or veto rights, which prohibit the owner of the land from doing something which would usually be permissible. Examples include: prohibiting the owner from subdividing the land without the necessary consent; restricting the height of buildings or prohibiting more than one building to be erected on the land; and prohibiting the transfer of the land without the consent from the Home Owners’ Association etc. A negative personal servitude can be created in the deed of transfer if it can be enforced by some person who is mentioned in the servitude and that person has accepted the right. This is often applied in the case of the creation of restraints enforceable by Home Owners’ Associations. However, no separate creation or registration event is necessary where the restraint is created by statute such as, for example, by Municipal Ordinance. Property transactors should therefore be vigilant of any potential transfer duty costs in respect of their transactions as it could lead to an unintended transaction cost when not properly managed. This article is a general information sheet and should not be used or relied on as legal or other 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 your legal adviser for specific and detailed advice. Errors and omissions excepted (E&OE)
The rising popularity of sectional title ownership
Sectional titles have become a staple in the real estate industry over the past decades. And with all the benefits that come with it, it makes sense. Heightened security, lower insurance costs on buildings and outdoor areas, shared maintenance costs with other owners, becoming part of a community, no cleaning the pool on Saturday mornings — it sounds like any homeowner’s dream. And it’s not just hearsay, the numbers speak volumes. In 2005, sectional title sales only took up about 13% of overall property sales. But by 2010, sectional titles sales started picking up, soon accounting for 22% of all sales and reaching a whopping 28% of overall sales by 2016. Even with the slight dip sales took due to the pandemic, sales were still able to reach a high of 29% of the market at the end of 2020. When looking at sectional title sales in each province, Gauteng has always been the frontrunner, accounting for more than half of all sales nationally, while the Western Cape and KwaZulu-Natal take 2nd and 3rd place (with 18% and 14% of sales, respectively). The market is drastically shifting, though, with the Eastern Cape’s sales increasing by 28,3% over the past four years. Growth in the other provinces has been substantially lower, with the Western Cape even showing a decline of 4.9%. When it comes to revenue, however, the Western Cape is still in the lead, dominating the R3 million+ property market. The Western Cape market saw an exceptional rise in sectional title sales between 2016 and 2018 with an influx of sales born out of the semigration trend. In the following years the sales have metered out and plateaued again (however, still leading in the upper market spectrum). Beyond the benefit of having a cost-effective home that allows you to lock-up-and-go knowing that your property will be safe, one of the primary factors that contribute to the growing popularity of sectional title sales has been the lower price inflation rate. Lightstone statistics show that sectional title properties have had a lower inflation rate compared to freehold properties since 2010. The margin between the inflation rates had slowly been closing over the years, with the rates aligning at the end of 2019. Though, in 2020, the gap widened once more. That gap may be narrowing once again, though, as the inflation rate of a 3-bedroom property in either category reached the 4%+ mark in the first quarter of 2021. This is largely due to the momentum that sectional title sales have gained while freehold properties have been losing traction. It doesn’t look as if sectional title ownership is going to drop in popularity any time soon. Rather, all signs indicate that it has become a mainstay in the property market going forward. This article is a general information sheet and should not be used or relied on as legal or other 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 your legal adviser for specific and detailed advice. Errors and omissions excepted (E&OE)
Know how to make the most out of home insurance
Home insurance is there to protect one of the most important assets you own. And when done properly, it will allow you to insure both the structure of your home and the life that is lived within its four walls. Home insurance can be divided into three sections: Building Insurance, Home Contents Insurance, and Personal Valuables Insurance. The purpose of Building Insurance is to cover only the structure of your property, and Home Contents Insurance covers items such as appliances and furniture that stay within the home, while Personal Valuables Insurance covers the household items that travel with you out of your home, such as cell phones and laptops. To ensure that your home insurance policy covers you as best as possible, you should understand your cover fully and assess its accuracy over time as your property changes. Check your liability limit It’s important that you should be covered realistically, which is why comprehensive coverage is always advisable. When you consider the costs of rebuilding your property or replacing its contents, the numbers can quickly add up, and you need to be sure that you are covered adequately should you need it. Cover for natural occurrences While damage caused by natural disasters, such as hurricanes and tornadoes, is usually covered by insurance policies, other natural occurrences may be excluded. When you live near areas that are prone to natural influences, such as a riverbank or known fault line, you need to find insurance that will cover you should damages arise due to these natural causes. Update it as you go Your policy is based on the contents of your home, and should this change, your policy should also be updated accordingly to reflect its latest status. The presence of a piano or original piece of art in your home, for instance, can increase your instalment substantially. So, if you decide to sell an item of substantial financial worth, make sure to update your policy to avoid paying for cover of an item you no longer own. When you add something, on the other hand, updating your policy is just as important, as major items (especially high-value ones) will not be covered if they are not explicitly included in your policy. Specify your structures Knowing which structures are covered by your policy can save you a lot of hassle and financial turmoil. Many insurance policies cover only the main dwelling structure, the home itself, and do not cover any damages to, for instance, garages, swimming pools, or lapas. Keeping your policy simple may save on instalments and may be prudent when the other structures on your property are not of high value. But when the additional structures on your property are of high value, it is usually advisable to include them in your policy. While most home insurance policies are rather comprehensive in their cover scope, there are a few items that are most often not covered by insurers. Coverage is often limited/not granted in the following instances: Most damages caused by pets. Appliances used in B&B-use rooms are not covered by household insurance. Theft due to the homeowner’s negligence, such as leaving a door unlocked. Where damage is the result of poor maintenance. Damage caused by natural occurrences that could be avoided, such as roots and weeds. Any damages of theft occurring when a property has been left unoccupied for a significantly long period of time. Home insurance may not be something you look forward to utilising, but the old proverb is highly applicable here: it’s better to have it and not need it, than need it and not have it. If you’re looking for new home insurance or want to update yours to be more comprehensive, make sure to contact us for the advice you need. This article is a general information sheet and should not be used or relied on as legal or other 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 your legal adviser for specific and detailed advice. Errors and omissions excepted (E&OE)
Make the property transfer easy by picking the right conveyancer
Since property transfers are some of the highest-value transactions that you may make in your lifetime, it naturally follows that you need to ensure that you don’t let your money go to waste – especially when choosing someone to handle the process for you. Choosing the right conveyancing attorney can save you a lot of headaches down the road. As COVID-19 hit the shores of South Africa, there was already quite a clear indication of what the medium-term future might hold. Consumer spending dropped across the globe, and investors, in panic, were withdrawing the value from their financial assets. Over the stretch of 2020 in South Africa, this led to the need to stimulate the economy by lowering interest rates. In the middle of it all, the property market stands as a mirror image of the surrounding economy, where conveyancing attorneys are standing on the frontlines, as if fighting in a war. The property market remains an active market right now because those who were adversely affected by the effects of the pandemic are selling off property to make ends meet, while for those who weren’t as adversely affected, there has never been a better time to buy property with sustained low interest rates on property bonds. In the middle of the storm of the active property market are the conveyancers who are doing all the work to deal with the legal aspects of the property transfers taking place. This is why, for the buyers and sellers at the end points, the right conveyancer can mean a world of difference and should not be chosen lightly. A conveyancing attorney is someone who helps both the buyer and seller navigate the terms of transfer of a property that will have consequences far into the future. With these long-term stakes, buying property is a big commitment. Perhaps the only greater commitment you can make in life is getting married. And just as much as you wouldn’t choose just any marriage officer to officiate your wedding, it is also inadvisable to pick your conveyancer at a whim. What, then, are the qualities you need to look out for in a conveyancing attorney? Knowledge and Expertise A Conveyancing attorney, in the simplest of terms, is a lawyer who handles all the legal processes related to the transfer of a property on behalf of the buyer and seller. Since property transfers are high-value agreements, it is necessary that you pick a conveyancing attorney that knows the ins and outs of property law as one misstep can seriously delay the transfer process. Conveyancers are qualified attorneys that have undergone additional training after obtaining their law degree and being admitted as an attorney in accordance with the terms of the Legal Practice Act. However, not all attorneys are created equally. So, choose one that is confident in their ability to handle all the legal matters and that has a track record to boot. Some property transfers might also require specialised knowledge related to restrictions and conditions to the use of the property (such as servitudes). A good conveyancer will be able to point out anything that could become a cause for concern. Accessibility and Transparency When it comes to legal matters, staying up to date is key as things can change quickly and new issues can rapidly pop up. A good conveyancer will be accessible to you and inform you of any new developments in the transfer process. Not only should they keep you up to speed, but should also be available to answer any questions you might have regarding the process. Poor communication is not a good look on a conveyancer. Make sure that your conveyancer is someone that will explain the processes involved in the property transfer as simply as they can. Approachability and trustworthiness A Good conveyancing attorney acts in the interests of both the buyer and the seller. Although the seller has prerogative when appointing a conveyancer for the transfer of their property, the buyer shouldn’t be left to bear the consequences of a poor decision. Therefore, the buyer and seller must find the conveyancer approachable and helpful when required. A conveyancer that acts in the interest of both parties not only smooths the process of the transfer, but also helps to make the entire process an amicable experience. The value of choosing the right conveyancing attorney cannot be overlooked. Peace-of-mind and clarity can go a long way towards making a house a home, while satisfying the seller’s needs as well. Reference list: https://businesstech.co.za/news/wealth/125583/conveyancing-fees-this-is-what-you-are-paying-for/ Conveyancing: Conventional Deeds (Act 47/1937): Guideline of Fees Legal Practice Act No. 28 of 2014 This article is a general information sheet and should not be used or relied on as legal or other 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 your legal adviser for specific and detailed advice. Errors and omissions excepted (E&OE)
Better renovations, better results
It is understandable that home confinement has left many homeowners’ minds flooding with home improvement and renovation ideas. But however much your home may benefit from a good touch of elbow grease, thinking things through carefully is vital. Many may have identified ways in which they can make their homes more comfortable and enjoyable. Others simply want to update the style of their homes. And whether it entails sprucing up bathroom fixtures or installing a kitchen island, these renovations can drastically alter the appearance of your home and can change a worn-down abode to a piece of prime real estate. Most professional renovations, especially structural ones, can also lead to enhancing the value of a property that is entering the market. For others, renovations are done precisely to avoid moving to a new home. When one can alter your home and make it feel brand new, the urge to move will be minimised, allowing you to avoid the stress and costs related to moving house. Whatever the reason for the renovation, it should be approached thoughtfully and carefully. Focusing on smaller parts of the big picture will help you approach the renovation systematically, ensuring minimal pressure and maximum success. This will allow to contract the necessary parties only once they are needed. Doing this will also allow you to manage your budget accordingly as the renovation progresses. Budgeting is a vital part of any successful renovation. Renovations often rely on continuous funding, where a shortage of funds mid-way could alter the success of the final outcome. To budget effectively requires copious amounts of research, which includes finding the most appropriate and cost-effective material, and the best professionals to help you, but it also includes more technical aspects. You should always enquire about the regulations that may inhibit your renovation or require it to be altered. Doing the necessary research regarding allowable renovations and obtaining the necessary permissions when they are needed is necessary to ensure success for your renovations. Beyond regulatory permissions, it is also advisable to obtain the advice and guidance of an environmental specialist, especially when you reside in a nature reserve or estate. Ignoring environmental issues can also lead to adverse effects brought about by your renovations, such as the disturbance of underlying water sources. Whenever the structural security of a building comes into play, the advice of an architect is of utmost importance, especially where previous renovations have been done. Previous work may not have been completed to the same standards as the primary work and may require careful work and may even prohibit additional work surrounding any previous faulty work. Getting the necessary electrical and plumbing expertise will also ensure that you do not end up with a ticking time bomb hidden inside your renovation. Finally, it is important to keep in mind that renovations take time and will disrupt your living experience. Patience is more than a virtue when it comes to renovations – it’s a non-negotiable requirement. Even the smallest renovations are wonderful ways to give your living experience a boost. But no matter the size of the task, approaching it with the right mindset, patience and assistance is vital. This article is a general information sheet and should not be used or relied on as legal or other 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 your legal adviser for specific and detailed advice. Errors and omissions excepted (E&OE)
Considerations before the biggest decision of your life
Purchasing a home is one of the biggest decisions most people will make in their lives. It makes sense then that this endeavour should be approached with diligent consideration and care. While the necessary assistance of professionals, who will help you make the best decisions along the way, is highly advisable for this journey, there are a few tell-tale signs you can spot yourself that will help you identify whether a property deserves another moment’s consideration. Once a house become a showhouse, a magical veil is drawn over a mundane property that allows it to appear like a home right out of a movie or magazine. It’s undeniable that first impressions leave lasting impressions, which is exactly why homeowners may try to cover up any defaults by dazzling you before you find out something is amiss. It is important to not let first impressions affect your judgement. Because of this, it is vital that you investigate thoroughly. If you are serious as a buyer, and the seller is serious about selling, the seller should not have a problem with allowing you free reign through the property (even if it is supervised by them). Like a real estate Indiana Jones, you should explore every inch of the property. Open doors, flush toilets, test the taps, flip every switch you can find, jump on the floors (especially upstairs) – go all out. During this exploration, it’s important to pay attention to cracks, even minor ones, and doors that struggle to close. These occurrences may indicate foundational problems. When you find either of these, it is best to have a structural survey completed beforehand. You should also pay attention to any fresh coats of paint, especially when found in selected patches. If an entire room has been repainted, it is advisable to enquire as to the reason for the repaint, but when a patch of paint is visible it usually indicates an area where damage has been patched up. Getting to the bottom of such damages is important. As you travel from room to room, it is also good to get a feel of the climate within the house. You shouldn’t have to imagine what a room would feel like once you have a new air-conditioning or heating system installed. If the house’s interior temperatures are not accommodating, you need to consider to what extent this will influence you. Once you’ve done the rounds inside, remember to take a tour of the exterior as well. It’s a given that you should inspect the condition of the yard and the roof, but you should also ascertain the state of the neighbours’ properties where possible. This will not only help you get a feel of property itself, but also of the community that will ultimately affect your living experience and the value of your property. All of that said, it is also important to be able to see beyond minor shortcomings and the current state of things. An unkempt yard, unvarnished kitchen counters, clutter throughout the house – these are all factors that can be given the necessary attention in time. When you tour a property, it is important to envision your home, as you would want it. While there are various deal-breakers, especially when it comes to structural security, there are also many shortcomings that may make a bad first impression that should not inhibit you from seeing the potential of the property. Go in with a plan. Ask questions. Demand answers. It’s your future home – it’s worth the trouble. This article is a general information sheet and should not be used or relied on as legal or other 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 your legal adviser for specific and detailed advice. Errors and omissions excepted (E&OE)
The tenant-landlord relationship
The relationship between landlord and tenant is a symbiotic one, where the efforts of either party results in the best outcome for both parties. During the lockdown, this two-way relationship between many tenants and landlords has been threatened. The biggest contributor to this is quite simple: a lack of information. Paying your dues One of the biggest impacts the lockdown has had on tenants is through affected income. Unfortunately, tenants are still required to pay the full rental amount if they are still able to occupy the property, regardless of how their income has been affected. Where income has been affected, tenants should discuss the possibility of a reduced rent directly with their landlords. Landlords, however, also rely on rental income and cannot always afford to lower rental amounts. When this is the case, tenants can, technically, apply to the Rental Housing Tribunal to request a reduction in rent, but due to new cases not being heard at the moment, such a request is unlikely to be successful. The best option is for tenants to apply for State assistance, and so ensuring the least impact on both parties. With these types of requests, it is important to note that landlords will have to be furnished with relevant personal information of the tenant to corroborate a tenant’s inability to pay their rent. The landlord will, however, be responsible for guarding the privacy of their tenant’s personal information in such a case. Sticking to the rules Even when the relationship is no longer a beneficial one, and becomes filled with strife, landlords may not terminate a lease or refuse services to tenants and may not insist on conducting an investigation of the property without the tenant’s express permission. Similarly, tenants may not cancel their leases during this time either. Such “threatening” actions are highly discouraged while the country is in any level of the lockdown. As before, a tenant’s deposit may not legally be used to cover rental arrears, but only for its intended post-rental purposes. Deposits, along with the accrued interest, must be refunded to the tenants upon their exit, where only the necessary cost of repairs may be deducted. Landlords are also still responsible for the maintenance of their properties, and for ensuring liveable conditions for their tenants. During any maintenance procedures landlords and workmen are obliged to adhere to social distancing and must follow adequate sanitising methods throughout. The landlord must also provide the necessary clothing and equipment for the procedures to be completed themselves. End of lease But while tenants may not be evicted and leases may not be terminated, the reality is that leases do come to an end. As far as possible, tenants and landlords are encouraged to continue their relationship, even if just on a month-to-month basis until moving house can be done without safety hazard. Where the continuance of a lease is not possible, tenants should obtain a permit from the SAPS allowing them to move freely during their relocation, and follow strict safety measures throughout the process. This article is a general information sheet and should not be used or relied on as legal or other 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 your legal adviser for specific and detailed advice. Errors and omissions excepted (E&OE)
How to approach property purchases post-lockdown
At the end of the national lockdown, many South Africans will have gotten to know their properties better than the architects who designed them. For some, this time will lead to ways they plan to improve their homes, for others, it will leave them desperately wanting to never see the same four walls again. But how do you enter the buying market again after the lockdown? The answer is, with extra care. While buying property is never something to step into lightly, the chances of making an impulsive decision once you’ve tasted freedom again are a lot higher than they were before. The best advice would be to treat the experience as if nothing has changed. For the real estate market, this may even be somewhat true. The real estate market has proven time and again that it is able to recover from even the worst crises, whether it be financial, social or medical. The reason for the market’s stability lies in its properties’ stability. While stock markets crash and abstract financial concepts such as inflation crumble during a pandemic, properties continue to stand unaffected. And while stock trading is quite low on the priority list during a worldwide pandemic, such as the COVID-19 outbreak, a priority that is still at the top is the need for housing. The real estate market, by nature, prevails. So once the lockdown is lifted, don’t rush things. Use the same diligent consideration in every decision and make sure you invest accordingly. That said, there is one way in which the lockdown should influence your purchase. Use the negative experiences and shortfalls of your current (or soon to be previous) home to help guide you towards what it is you truly need and want in a home. An experience that may have seemed negative will help you to create a clear vision of what your next home should be. Once the lockdown has lifted, precautionary measures may still be put in place, especially regarding social distancing, nevermind people’s own fears of entering society again. The introduction of the Electonic Deeds Registration System, introduced at the end of 2019, will further assist the restoration of the property market even as the scare of the pandemic continues to loom over the country even after the lockdown has been lifted. This electronic platform allows property ownership to be transferred without having to set a foot inside a cramped government office, effectively continuing social distancing and creating a more efficient conveyancing process. So keep calm and plan your property comeback accordingly. This article is a general information sheet and should not be used or relied on as legal or other 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 your legal adviser for specific and detailed advice. Errors and omissions excepted (E&OE)
Matrimonial property regimes
My partner and I are getting married soon and have heard about the different matrimonial property regimes one can enter but I am not sure what the difference is and what each one entails. There are three types of matrimonial property regimes in South Africa. The three are marriage in community of property, marriage out of community of property with the inclusion of the accrual system and marriage out of community of property with the exclusion of the accrual system. When parties decide on either of the two latter, they must enter into a contractual agreement with one another before a notary public. It is important to understand what they all entail before one gets married. Marriage in community of property is the so-called “default” regime, because all marriages are deemed to be in community of property if an Antenuptial Contract is not concluded before the marriage. This is also the most popular regime because it is the easiest one to conclude. When two parties get married in community of property, their estates will be joined together. Every asset and liability each party had before getting married and acquires during the marriage will become one estate and on dissolution of the marriage, the estate will be divided equally between the parties. This system is based on the theory that each spouse, whether employed or at home running the household, contributes equally to the marriage and on dissolution of the marriage is entitled to share equally in the joint estate. It is important to note that when one enters this type of matrimonial regime, in some instances consent will be needed from the other party. One of the biggest disadvantages of this system is that if one party incurs debt, the debt will form part of the joint estate. When one enters into a marriage out of community of property with the accrual system, it means that the parties entered into a contractual agreement with one another, which is known as an Antenuptial Contract. This contract must be entered into before a notary public and has to be registered at the Deeds Office. In this regime, the two estates of the spouses before the marriage remain separate. No consent will be needed from the other spouse in order to handle his/her own affairs. The accrual system will be applicable at the dissolution of the marriage or upon death, whichever may occur first. What happens with the accrual is that whatever the parties acquired during the existence of the marriage, will be compared and the half of the difference in accrual will be owed by the estate which shows a larger accrual. On dissolution of a marriage out of community of property with the accrual system, inheritances and donations received by a spouse from a third party will not be included in the accrual. In a marriage out of community of property without the accrual system, each party’s estate will remain separate. This system enables parties to control their own estate and affairs independently and on the dissolution of marriage, the parties will retain their own assets and liabilities. It is important to note that even if parties are married out of community of property excluding the accrual system, both parties will have to contribute to the household as a married couple – it is one of the duties that arises from marriage. This article is a general information sheet and should not be used or relied on as legal or other 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 your legal adviser for specific and detailed advice. Errors and omissions excepted (E&OE)
Joint ownership: How do I terminate without the co-operation of the other joint owner?
Summary: This article gives a brief overview of the nature of joint ownership, and specifically focus on the termination of joint ownership and the remedy available to a joint owner who wants to terminate the joint ownership, but cannot achieve it because of a lack of co-operation of the other joint owner. Article: Nature of joint ownership: Joint owners own undivided shares in the property which they own jointly. Consequently, the joint owners cannot divide the joint property while the joint ownership remains in existence, and a joint owner also cannot alienate the property or a part thereof without the consent of the other joint owner. The rights in respect of the joint property need to be exercised jointly by the owners thereof. Ways in which joint ownership can arise: Joint ownership can come into existence by way of an inheritance in which an indivisible property is left to more than one person in indivisible shares; by way of a marriage in community of property, by the mixture of movable property in such a way that it forms a new movable item or by way of an agreement in terms of which the parties agree to jointly buy a property and that both will have equal indivisible shares in the property. Division of joint property: Any joint owner can claim the division of the joint property according to that joint owner’s share in the property.[1] It is a requirement for the division of the joint property that the parties need to try to divide the property among themselves first, before approaching the Court for an action to divide the property, which action is called the actio communi dividendo[2]. The underlying principle of the actio communi dividendo is that no co-owner is normally obliged to remain such against his will. If there is a refusal on the part of one of the co-owners to divide, then the other co-owner can go to Court and ask the Court to order the other to partition. The Court has a wide discretion in making a division of the joint property, which is similar to the discretion which a court has in respect of the mode of distribution of partnership assets among partners. The Court may award the joint property to one of the owners provided that he/she compensate the other co-owner, or cause the joint property to be put up to auction and the proceeds divided among the co-owners.[3] Where there is no agreement between the parties as to how the joint assets are to be divided a liquidator is ordinarily appointed, and he can then sell the assets and divide the proceeds, if it is not possible to divide the assets between the parties.[4] If the immediate division of the joint property will be detrimental to the parties, the Court can order in certain cases that the division or the sale of the property be postponed for a period.[5] It is beneficial that there exist means to divide assets which are jointly owned by parties, who no longer wish to be co-owners, but who cannot reach an agreement on the division of the assets. Without such an action, people might be stuck with a property which they derive no benefit from because it is in the possession of the other co-owner, who refuse to sell the property. [1] Inleiding tot die sakereg, Van Niekerk & Pienaar, Juta, p 53 – 61. [2] Robson v Theron 1978 (1) SA 841 (A). [3] 1978 (1) SA 841 (A). [4] 1978 (1) SA 841 (A). [5] Van Niekerk & Pienaar, p 61 – 62. This article is a general information sheet and should not be used or relied on as legal or other 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 your legal adviser for specific and detailed advice. Errors and omissions excepted (E&OE)