Building your own home in a residential complex of your choice is an attractive proposition on many levels. Just make sure up front that you will actually be ready to build within whatever deadlines the HOA (homeowners’ association) specifies.

Otherwise, as we shall see from a recent High Court dispute, you could end up paying levies at a penalty rate – if, that is, the developers don’t first demand re-transfer of the plot back to them,  at your expense.

And the penalty levies will be substantial – 5 times the normal rate in the case in question, with other cases involving 8 or even 10 times normal levies. As the Court pointed out, penalty levies can’t be too moderate without losing their “persuasive sting”.

 


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October 2022 NEWSLETTER
Building in Security Estates: The ‘Persuasive Sting’ of Penalty Levies

Building your own home in a residential complex of your choice is an attractive proposition on many levels. Just make sure up front that you will actually be ready to build within whatever deadlines the HOA (homeowners’ association) specifies.

Otherwise, as we shall see from a recent High Court dispute, you could end up paying levies at a penalty rate – if, that is, the developers don’t first demand re-transfer of the plot back to them,  at your expense.

And the penalty levies will be substantial – 5 times the normal rate in the case in question, with other cases involving 8 or even 10 times normal levies. As the Court pointed out, penalty levies can’t be too moderate without losing their “persuasive sting”.

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Why You Should Sign a Power of Attorney Before You Emigrate or Travel
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Leaving South Africa for foreign climes, whether permanently or for an extended period, probably means leaving behind unfinished business or financial affairs, and/or property or other assets needing to be dealt with.

And whilst it is certainly possible for you to sign documentation, contracts and the like whilst in another country, the inconvenience and costs likely to be associated with the necessary authentication procedures – to meet local requirements – are avoidable.

We discuss what a power of attorney (POA) is, the difference between a “special” power of attorney and a “general” one, what they involve, why and when you should consider signing one (or several), and how to structure each one to be valid and fit-for-purpose.

   
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Creditors: How to Secure Your Claim with a Notarial Bond
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Lending money or advancing credit to another individual or business carries with it a certain amount of unavoidable risk. But you can minimise that risk by, for example, taking as much security as you possibly can over the debtor’s assets so as to ensure that if your debtor fails, and is liquidated/sequestrated, you move up from being last in line when it comes to dividend payouts, to getting first bite of the cherry from those assets subject to your security.

Our discussion on how to achieve that will focus on the two types of notarial bond available to you in relation to movable assets, namely “special” and “general” notarial bonds. We’ll see how they differ and how each should fit into your planning. Then with reference to a recent High Court decision, we’ll end off with a look at how you can convert the relative weakness of a general notarial bond into the strength of a “perfected” bond.

   
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Dismissed for Criticising a Mine’s “No High Heels in the Workplace” Rule
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One can certainly understand that a mining operation, in complying with its legal obligation (shared by all employers) to provide a healthy and safe environment in the workplace, would take steps to require that employees wear suitable footwear while on duty. And it’s no surprise that a risk assessment carried out by the mine concluded with an instruction to all employees to wear only flat shoes at work.

But the employer’s dismissal of an employee for “gross insubordination” and “incitement”, after she was instructed to stop wearing high heels and vented her dissatisfaction to her colleagues, was overturned with a Labour Court order to retrospectively re-instate her.

We discuss the reasons for that outcome and share some valuable lessons for all employers flowing from the judgment.

   
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Website of the Month: Four Key Areas in Your Strategic Planning
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“Strategy is the art of carefully selecting where a business applies its focus and resources in order to achieve its ultimate aim. A large part of the work is in selecting what not to do rather than what's to be added.”

Strategic planning is an essential part of optimising your business for success. Without it you will drift rudderless, unfocused and wasting effort and resources with no clear destination in mind.

Jon Cherry’s article “The Four Strategies” on his Cherryflava website lists four key areas to consider – in combination, they will help drive your business forward, inspiring all the work, and the people, that hold your “North Star” vision close.

   
         
 

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Westlake Square
1 Westlake Drive
TOKAI, 7945


 Tel:  021 702 3070
Email:  info@matthewsenslin.com
Website: www.matthewsenslin.com

 
         

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 your professional adviser for specific and detailed advice.


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