Gauteng Provincial Government Lecture: Housing Options and Legal Responsibilities

Practice questions covering renting, building, and buying residential property including legal acts and financial responsibilities based on Gauteng provincial government guidelines.

In a rental agreement, what are the formal terms for the tenant and the owner of the house?

The tenant is called the lessee and the owner is called the landlord or lessor.

What is the definition of a lease agreement?

An agreement reached between the tenant and landlord, signed by both parties, which states rental conditions, rights, and responsibilities.

What are the common financial requirements for a tenant when moving into a property?

A deposit of one months rent plus the first month's rent must be paid.

According to the Consumer Protection Act of 2011, what is the maximum duration allowed for a lease agreement?

$$24\,months$$

Under the Consumer Protection Act of 2011, how much notice is required for either a lessee or lessor to terminate a lease?

$$20\,business\,days$$

Which specific law controls the relationship between a landlord and a tenant?

The Rental Housing Act 50 of 1999

What are two advantages of building a house over buying an existing one?

It can cost less (owner builder), there are no transfer/conveyance fees, and the owner can design the house with the latest technology.

What are two disadvantages of building a house?

Possibility of unexpected costs, longer duration due to construction delays, and the risk of faulty construction or design.

What does the acronym NHBRC stand for?

National Home Builders Registration Council

Under which act must all builders and contractors be registered with the NHBRC?

The Housing Consumers Protection Measures Act of 1989

What does a standard home builders' warranty provide for a new house?

It provides a $5\,year$ warranty ensuring the integrity of the house and promises to repair structural defects, roof leaks, or faulty construction.

What is the difference between Full Title (Freehold) and Sectional-Title ownership?

Full Title means owning the entire property including land and structures; Sectional-Title means owning a specific unit while communal areas are jointly owned.

What organization must every owner join in a Sectional-Title ownership structure?

The Body Corporate

What is a mortgage or home loan?

Money borrowed from a bank to buy property, which is paid off over an agreed period in monthly instalments with interest.

What is included in the monthly levy paid by Sectional-Title owners?

Property tax, service fees, building insurance, maintenance of the building and common property, staff wages, and water/electricity for common property.

What is an 'offer to purchase'?

A written agreement between the seller and buyer that includes terms and conditions for the purchase, such as the purchase price.

What is the 'deed of sale'?

The signed agreement between the buyer and seller once the offer to purchase has been finalized and signed by both parties.

Who is responsible for paying the estate agents' commission according to a typical deed of sale?

The seller