Risk Alert Bulletin - 3
30 July 2003
Attorneys Insurance Indemnity Fund website
- Failure to reduce variations in the agreement to writing/failure to record in writing essential facts which have been agreed orally.
Important terms should always be recorded in writing.
- Payment of proceeds of a sale to the incorrect party e.g. paying only to one member of a CC where all members hold equal shares or payment only to the husband/wife in conflict with a divorce settlement.
Always peruse the conditions and the Deed of Sale thoroughly and ensure that you are aware of your client's full instructions. It is preferable not to become a party to agreements between third parties to the Deed of Sale e.g. retaining of furniture in exchange for exclusive shareholding.
- Undue delays in passing transfer, opening Sectional Title Registries etc.
Give clients realistic time periods for transfer so as to avoid unrealistic expectations. Always advise clients of delays in obtaining clearance certificates etc.
Prepare your Deed of Transfer very carefully so as to avoid delays in the Deeds Office.
- Administration of National Housing Subsidy Scheme funds and payment to unscrupulous developers before ensuring that obligations have been met in terms of the agreement.
Please be advised that the National Housing subsidy work is excluded in terms of the Professional Indemnity Scheme Policy and you should therefore take out additional cover if undertaking this type of work.
Also always ensure that all obligations undertaken in terms of the contract with the Housing Board have been completed before making any payments to developers.
- Sales of immovable property in instalments in terms of the Alienation of Land Act.
Familiarise yourself with the terms of the Act. Always ensure that the sale is registered immediately and remember that you have a duty to both the purchaser and the seller.