MORE ON THE CREDIT BILL

The Institute of Credit Management held a Seminar on the Credit Bill. The seminar was presented by Ashina Singh, the Executive Director of the Credit Bureau Association of South Africa. Ashina Singh is currently the Chair-person of the Law Review Project as well as a representative for Africa and the Middle East on the World Consumer Credit Reporting Committee and was admitted to the bar in 1992. Previously she acted a advisor to the Minister of Transport, Chairperson of the Credit Industry Form and advisor to the National African Federated Chamber of Commerce.

The following were highlighted as the objectives for the Credit Bill:
• Consumer protection
• Prevent consumer over indebtedness
• Prevent exploitative practises by credit providers

Ashina indicated these were sound objectives but questioned whether the Credit Bill would deliver these objectives.

One startling element that came up was the individual’s ability to enter into a process of debt review to have his debt restructured. This process prescribes that a credit lender must advise the individual in writing of his being default and advise him of his rights. One right the individual has, is to approach the court and declare that he feels he is over indebted. It is important to note that the individual does not have to prove that he is in fact over indebted; he must just declare that he feels he is over indebted. The Court will then allow for debt review. During the debt review process all of the individual’s credit agreements are suspended and there is no time limit to the debit review process.

If the out come of the debit review is that the individual is in fact over indebted, his debt is restructured. The Credit Bill then makes provision for any information stored on credit bureaus regarding the debt restructure and any defaults associated to the debt restructured to be removed from the individual’s profile as soon as the last instalment has been made.

The following transactions do not apply for debt restructure:
• Where the value of the transaction exceeds the threshold. (The threshold is still being decided.)
• Mortgage bonds

I posed the following questions to Astrid Ludin, Deputy Director-General: Consumer and Corporate Regulation at the Department of Trade and Industry:

Would a tenant’s rental contract qualify him as a consumer of credit?

Would a tenant who is in default of his rental agreement, be allowed to apply for debt review?

What steps would a landlord / estate agent have to take before listing a defaulting tenant on the credit bureaus?

STAMP DUTY

Please note the updated calculations for stamp duty on lease agreements (immovable property).

Taken from the Stamp Duties Act, 1968 (Updated 23/02/2005)

Tarrif 14. Lease or Agreement of Lease

In respect of a lease or agreement, an amount of duty calculated on a sum equal to the aggregate amount of rent payable exclusive of value-added tax in respect of the period of which the lease or agreement is required to be stamped as provided in section 22 of this Act, plus the amount of any other consideration whatsoever, the amount of which is quantifiable at the time of execution of that lease or agreement (excluding the duty payable under this item and exclusive of value-added tax) due or payable in respect or by virtue of that lease or agreement at a rate of 0,5% of the quantifiable amount of the lease.

For the purposes of this Item, no duty shall be payable in the event that the duty calculated on a lease or agreement of lease does not in aggregate exceed R200 over the period of the lease: Provided that this exemption shall not apply where the total consideration payable in respect of a lease or agreement of lease is not quantifiable at the time of execution of that lease.

Example 1:
Rent of R4000 p.m. for 12 month lease
= 4000 x 12 x 0.005
= R240.00

Example 1:
Rent of R4000 p.m. for 6 month lease
= 4000 x 6 x 0.005
= R120.00 (no stamp duty is payable as the duty calculated does not exceed R200)

SOME CLIENT FEEDBACK

Letter of Demand

WOW, looks like this is the answer that I have been waiting for!!! Thank you Michelle!!!!! ….

….Thank you for your help – this definitely was worth the R15.00!!!

Ilse Brink
Simply Letting

Stickers

Thank you so much for the stickers and certificate esp. the stickers. These have been proudly stuck onto my boards and let’s hope that with a bit of effort from all concerned tenants begin to realise that renting is no longer a "game" and there are serious implications to it. Hopefully we weed those types out and begin to take control.
Generally speaking 97% the collection fee is a real bonus but for the 3% who give trouble no one can pay me enough to handle them!!!!
Here goes - stick them on!

Jenny Bunge
Propertunities

WELCOME ON BOARD

Welcome on board to the following new agents...

Alen Ribic, Alice Hu Properties, Balfour Korbrin, Blouberg & Dolphin Beach Holiday Apartments, Bondexcel Southrand, Bonnin's Estates, Buks Coetzee Eiendomme, Carla Bauer, Chanico Property Rentals, Charles Estates, Charlotte Freeman, Chris Thacker, City Trust, Coastal Rentals, Collection & Financial Services, Danelli Properties CC, Darhan Property Consultants, Debtors Asset Management, Delvine Properties, Digoch Property, EL Bond Originators, Empire Estates International, ERA Midrand, First Bond Investments Trust, Fixtrade 1725, Francois de Kock, Genisis Property Group, Gilbert Estates Centurion, Gilbert Estates Pretoria East, Goldswain Gresty Rentals, Greyfield, Harvelt Properties, Henry Walker Estates, Ingrid Southwood, Javier Martin, Jawitz Properties Somerset West, Just Letting Constantiaberg, Just Letting Helderberg, Just Letting Krugersdorp, Just Letting Nelspruit, Just Letting Roodepoort, Just Letting Springs, Kaapse Huis, L Armstrong Properties, Lemontree Estates, Let-A-Home, Lime Litz Property, Linda Notelovitz, Louw & Coetzee Properties, Maureen Soule, Maxprop Ballito, Minorco Properties, Orion Developments, Pegasus Realty, Picanto, Pinnacle Property Real Estate, Proffessional Property Launchers, Property Ties, Rainbow Realtors, Realty Today Durbanville, Remax Marine, Remax Whale Coast, Rentwell, Robyn Glaser, Romain De Boni, Russell Fox, Sam Harrop, Sifiso Dumisa, Sirius Financial Services CT, Sirius Financial Services JHB, Sirius Financial Services KZN, Suidsee Eiendomme, Swift Bond Property Finance, Tru-Turn International cc, Two Oceans Properties, Veritas Property Management, Veronica Leander, Westpoint Executive Suites, Willem Benjamin Muller, Willie Lundall Eiendomme, Wilmarcor Eiendom Makelaars, Zonheimer Properties

THAT'S ALL FOLKS

Should you require any information about our services please contact Michelle or Wendy on 0861876000.

See http://www.tpn.co.za for more information.