escort ankara

admin

Cash-strapped Nigeria trapped in low growth path – Moody’s

Nigeria’s economy is not growing fast enough to absorb its expanding population, neither is government spending making a significant dent in the lives of the majority of the country’s poor people, according to global ratings agency, Moody’s.
The government’s revenue weakness is scuttling efforts to deliver a stronger economy, one that is less dependent on oil and growing closer to 6 percent annually, Moody’s said.

Nigeria doesn’t make as much cash as it used to when oil prices were as high as $100 per barrel, neither is economic growth as robust as it used to be.

Worse still, the country has borrowed huge sums of money that have failed to boost economic growth; rather they have become a burden on public finances and limited the government’s ability to invest in critical infrastructure.

“Nigeria is just paying bills and has no cash left to invest in priority areas like education and health,” said Aurelien Mali, vice president and sovereign analyst at the Moody’s Investors service.

Mali, who spoke at Moody’s annual Nigeria summit, also said the Federal Government spent less than any other government in the world on health and education.

In 2018, Nigeria’s health spend amounted to 0.6 percent of GDP while its education spend was 1.7 percent, much less than the sub-Saharan Africa average of 4.7 percent.

Moody’s says the 5.4 percent quarter-on-quarter decline in Nigeria’s gross federally collected revenues in the first quarter of 2019 underscores the challenges the government faces in implementing the reform agenda to lower the dependence on oil.

Under-performing revenues put the government in a precarious situation where debt is growing faster than earnings.

While the country’s debt burden has ballooned from 2 percent of GDP in 2010 to 22 percent in 2019, government revenue has been shrinking.

Revenue as a percentage of GDP has gone from 5.4 percent in 2010 to 2 percent in 2019, according to data compiled by and sourced from the Central Bank’s economic reports.

Abuja’s rising debt service to revenue which went from 14 percent in 2010 to 62 percent in 2018 tells the story of how public debt has grown faster than revenues over the last decade.

Faced with revenue challenges that resulted from the slump in oil revenue, the government has gone on a borrowing spree, having pushed its debt stock from under N6 trillion in 2010 to N25 trillion nearly a decade later.

Yet, most of that borrowing has had little impact on economic growth. GDP reports by state-funded data agency, the National Bureau of Statistics (NBS), show that the economy hasn’t expanded up to 6 percent since 2014.

When it has not contracted, the economy has expanded below 2 percent annually since 2016. That’s less than the population growth rate, meaning Nigerians have grown poorer for the last three years, a trend the International Monetary Fund (IMF) has projected to last eight years.

The IMF and Moody’s expect the economy to grow 2.3 percent in 2019. That poorly compares to the projected growth rate of other African countries from Ethiopia, tipped to grow 7 percent, to Egypt which will probably expand 5.9 percent.

The bulk of Nigeria’s youthful population are main casualties of the struggling economy, as they idle away with no jobs to do. Unemployment rate hit a six-year high of 23 percent in 2018, according to the NBS, with underemployment taking the tally to 40 percent.

The government’s borrowing spree hasn’t significantly impacted economic growth because most of the spending has been misplaced, some critics say.

The critics, most of whom are economists, say not much is left for the government to spend on critical physical and human infrastructure when so much of the little cash earned is expended on costly subsidies and debt servicing.

To grow the economy at a rate sufficient to create jobs for the 2 million Nigerians entering the job market yearly, spending more on critical infrastructure may not even be enough if the government’s revenue doesn’t improve.

Other than tapping private capital to increase investment in infrastructure, the government has very little solutions to boosting economic growth and creating jobs.

Source: By LOLADE AKINMURELE

Foreign Portfolio Investors sold N198bn worth of Nigerian stocks in 5 months ]

In five months to May 31, foreign portfolio investors (FPI) in show of less interest in the Nigerian equity market could not allow their monies stay longer in stocks.
Except for April, the capital exit seen in other months resulted in a huge N198.74billion which they took out of the stock market in the review five-month period as against N177.32billion they brought in, representing capital gain of N21.42billion.

Out of N790.31billion worth of equities transactions done at the Nigerian Bourse in the review period, foreign portfolio investors accounted for only N376.05billion, while N414.25billion worth of equity transactions were done by local investors.

This is revealed in the trading figures from market operators on their Domestic and Foreign Portfolio Investment (FPI) flows polled by the Nigerian Stock Exchange (NSE).

In January 2019, foreign investors brought in N27.81billion and exited with N39.04billion; while in February, foreign investors inflow into the Nigerian stock market was valued at N43.93billion against N55.01billion which the exited with.

This trend continued in March when their inflow into the stock market was just N25.89billion, but they succeeded in taking away N30.20billion.

Further check in April, foreign inflow was N41.78billion while its corresponding outflow was N35.14billion. Just last month (May), N37.90billion worth of foreign monies were invested in the stock market while these investors left the market same month with N39.35billion.

In the five months period, Nigerian stock investors outperformed foreign investors accounting for 51.02 percent and 48.98percent, respectively.

Foreign transactions which stood at N1.539trillion in 2014 declined to N1.219trillion in 2018. Over a 12 year period, domestic transactions decreased by 66.68percent, from N3.556trillion in 2007 to N1.185trillion in 2018.

Total foreign transactions accounted for about 51 percent of the total transactions carried out in 2018, whilst domestic transactions accounted for about 49 percent of the total transactions in the same period.

Source: By Iheanyi Nwachukwu

Community protests encroachment on land

Twelve persons were arrested yesterday in Abba and Ukpo, Prince Arthur Eze’s Community in Anambra State, following a land dispute between the two communities.

Of the number, three are women.

The land dispute has lasted 44 years.

Abba community had planned a peaceful demonstration on the Onitsha/Awka expressway to protest the alleged takeover of their land by Ukpo.

The Supreme Court, in January, told the communities to return to the High Court to begin the case afresh following missing court documents relating to previous rulings.

As early as 6am yesterday, hundreds of stern-looking policemen had blocked the expressway and the road leading to Abba, while women were stopped from doing their businesses in the market.

The teargas canisters that landed inside the Community Secondary School forced pupils to join the protest.

Vehicular movement was hindered for several hours, forcing motorists to use alternative roads.

A community leader in Abba, Mr. Obinna Chukwuma, regretted the development, describing it as unfortunate. He added that their decision to embark on a peaceful demonstration was to let the world know what they were passing through over their land.

He said: “Abba is a peaceful community but it is under siege. We have been living in harmony with our neighbours, but all of a sudden, a money bag from our neighbouring community, Ukpo, decided to take over our land by force.

“Anybody approaching this community from Awka would see the signpost with the inscription, ‘welcome to Abba’.

“That is our boundary with Ukpo, and they know it very well. When they built their local government headquarters, they built it on their land. When they built a police station, they built it on their land. They also plan to build a market called Eke Agu Ukpo on their land. So they know where their land is located.

“But unfortunately, they have come into our own land to mount a banner with the inscription ‘welcome to Ukpo junction, Dunukofia local government. In other words, they erected their sign post in another local government because Abba is in Njikoka council and not Dunukofia.

“That is why the people are protesting. We don’t have arms, we are not fighting anybody. We just want the world to know what is happening.

“It is unfortunate that someone who feels he has money is using it to intimidate us. Look at policemen firing teargas on innocent people, and women chased away from the market.

“Last week, the security operatives blocked our community with 12 hilux vans. Today, there are more than 500 policemen and over 20 hilux vehicles, including anti-bomb vehicles, just to mount a signpost on our land, even when Boko Haram is driving people out of their homes in some parts of the country.

“We will let the world know what is happening in our community…”

The protesters called on President Muhammadu Buhari and Governor Willie Obiano to intervene in the interest of peace and harmony.

Police spokesman could not be reached for comments. But a senior officer, who pleaded for anonymity, said the command would not allow anybody or group cause mayhem.

Source: The NationNg

Property slowdown hits Asian developers

They arrived with big pockets and a willingness to tackle mega skyscraper projects previously unseen in Australia’s capital cities, but the current residential property slump is proving dire for some heavyweight listed Asian developers.

As residential property prices slide across the country and Chinese buyers turn their focus elsewhere, a survey of interim financial results for development groups listed in Singapore, Malaysia and Hong Kong shows apartment sales have slowed dramatically and few developers are chasing new residential investments.

Buyers have all but dried up at Singapore-listed Fragrance Group’s signature 78-storey Melbourne tower, the unusual and distinctly curved design of which was inspired by US pop singer Beyonce.

Premier Tower has approval for 796 apartments and 167 hotel rooms.

Rapid construction of the glittering edifice is underway opposite Southern Cross Station, now almost half finished, even though a quarter of its apartments remain unsold.

Fragrance’s track record on selling units is illustrative of the broader sector’s travails, particularly as offshore developers are seen as having deeper and more effective sales channels to willing buyers in their country of origin.

In the rush to sign buyers after the tower’s 2105 launch, it booked sales of 61 per cent.

By March last year, company records showed sales were stubbornly slow, with at least 74.2 per cent, or around 200, remaining.

Now, it has reported have sold just 11 apartments over the interim year. Sales in the curvaceous tower are stuck at an anaemic 75.6 per cent.

Fragrance is controlled by billionaire developer Koh Wee Meng, who built his fortune on a series of budget hotels in Singapore’s red-light Geylang district.

The group’s only other Australian development, NV Apartments in Perth, has encountered similar hurdles.

Along with a lack of other active projects in Singapore, “this may cause the group to report negative results for certain quarters in financial year 2019″, it said.

Three-quarters of its apartments are yet to sell despite being nearly 80 per cent constructed.

Things are less grim for developer Roxy-Pacific Holdings, also listed on Singapore bourse, which reported annual revenue from Australia of $58 million.

Roxy’s residential projects, all in Sydney, “have been well received”, it says.

It has just one unit left to sell, out of 43, in its $41 million Octavia development in Killara, in Sydney’s northern suburbs, and both towers in West End Residences in inner-city Glebe are around 90 per cent sold.

The developer, nonetheless, has pulled back from residential, buying an industrial warehouse and office site at 36 Mavis Street in Revesby and signing a management deal to open a 319-room Park Hotel in central Melbourne in 2022.

Another big player, Malaysian developer UEM Sunrise, controls Melbourne’s second tallest tower, the Aurora Melbourne Central megalopolis in La Trobe Street.

It has reported a healthy 98 per cent settlement rate on the third portion of the massive 1149-unit project, about 201 apartments, that have been handed to new owners.

But the group’s $322 million, 42-storey Conservatory development in MacKenzie Street had only achieved a settlement rate of 73 per cent by March.

As a result of the slowdown, UEM has turned its hand to property management, striking a joint venture deal with Wotso in the co-working and serviced office space.

Across town in Southbank, developer OSK Holdings is having more luck with its equally ambitious 1054-unit Melbourne Square project.

Listed on the Malaysian exchange, OSK launched the first tranche of 457 apartments in June 2017 and by the end of last year had sold 60 per cent.

It reported sales a further 22 sales in the three months to March.

According to real estate agency JLL, the well-catalogued free-fall in house prices, slumping offshore demand and tighter bank lending has forced Melbourne’s developers to shelve or repurpose 51 apartment projects – and an estimated 16,550 units – over the past two years.

The crunch has hit hardest on city high-rises and mega projects with 500 or more apartments, but is being felt across the state, the agency said.

Source: Sydney Morning Herald

Rebrand your profession, Moghalu tells surveyors

The presidential candidate of the Young Progressive Party, YPP in the 2019 presidential election, Prof. Kingsley Moghalu has called on the Nigerian Institute of Surveyors, NIS to re-brand the profession to be attractive to younger generation.

Moghalu who was a former deputy governor of the Central Bank of Nigeria, CBN made the appeal yesterday while delivering a keynote address at the 53rd Annual General Meeting of NIS with the theme “National Mapping Infrastructure and Geo spatial Technologies in Monitoring Disaster for Sustainable Development,” held in Awka, the capital of Anambra state.

He said the institute needs to re-brand the profession from analogue to Geo spatial Technologies to make it more appealing to younger generation who are digitally driven. “The profession has not much meaning to younger ones. Whenever it is rebranded to reflect digital world, many youths will be attracted to the profession. Rebranding to Geo spatial technologies will make more sense to them,” he said.

The president of NIS, Mr. Alabo Charles said surveyors have not been actively involved in policy implementation in Nigeria, regretting that they have been limited to playing advisory role in mapping and surveying. According to him, NIS needs to be actively involved in the implementation of surveying and mapping of the nation at all levels.

Source: Dailytrust

Long Term Funding for Housing and Role of Data Dominates FSS2020 Forum

The Financial System Strategy FSS2020 Secretariat has convened the Quarter 2 2019 Mortgage Market Forum with the theme, “Integrating the Housing Ecosystem Using the Housing Market System (HMS).”

The Forum which is an assembly of Mortgage and Housing experts under the Chairpersonship of Director OFISD CBN, Mrs Tokunbo Martins, held on Wednesday at FSS2020 Secretariat, CBN Annex, NIRSAL Building, Abuja.

While speaking to Housing News, Adedeji Jones Adeshemoye, Group Head and CBN Deputy Director, Analytics, Projects and Special Examination, who is also Head of Nigeria Housing Finance Program said that the forum was essentially for stakeholders to update themselves on the FSS2020 strategy for mortgage sector and housing finance sector in Nigeria, particularly as 2020 draws near.

‘’We looked at the three thematic templates that we are working on to see where we are, and to score ourselves, and to also brief other members of the forum about where we are with issues like financial liquidity, long term funding for affordable homes in Nigeria, and other institutional arrangements that will move us closer to our targets under the financial system strategy.

‘’We meet every quarter as stakeholders to look at the task that we have been given – tasks that individual stakeholders are carrying out in the strategy implementation. We have responsibilities for different stakeholders. We come here to appraise what we have done, and then refocus on our objectives.

‘’Our goal is that by December 2020 when the FSS2020 will terminate, Nigeria mortgage ratio to GDP measures up to 20%. But we are still very far from that, and today is to rededicate ourselves to this duty.

‘’One of our key themes is to solve the problem of not having enough liquidity in the system to finance home ownership. The savings we have are short term, while housing is a long term project. So through the refinancing that we have created NMRC for, we have a market based institution that is connected to the capital market where the long term funding is, and that has been delivered,’’ he said.

However, there are a number of things according to him that will make it work better, and chief among them is access to land which is largely under the control of the government.

To address this, the Forum have developed the ‘Modern Mortgage Foreclosure Bill’ to be passed in all states of the federation. According to him, Lagos and Kaduna have passed theirs while different states are at different levels.

‘’So this forum gives us the opportunity to device how to collaborate with the Governors’ Forum so that they can help speed up the process of passing this bill into law and solve the problem of land titling in Nigeria, so that we have uniformity across the country.

‘’Today, we have also developed 4 different market based underwriting standards that will enable Nigerians at home and abroad, and those that have been disenfranchised in one way or the other to have access to mortgages.

‘’We are also coordination with those in the supply side of housing – the real estate developers – who will now be doing demand based supply as against what used to be the case,’’ he said.

Another achievement of the Forum according to him is the current development of an ‘Electronic Assets Registry System’ that will help everyone in information gathering.

Also speaking with Housing News, the president of Mortgage Banking Association of Nigeria (MBAN), Niyi Akinlusi stated that the mortgage market system forum is where major stakeholders meet and see how they can drive housing ownership including mortgage and the contribution of housing and mortgage GDP to the country’s economy.

‘’We are using housing to drive jobs, and reduce housing deficit, and ensure that the housing sector mortgage market takes its rightful position in relation to Nigeria’s GDP,’’ he said.

On the impact of Housing Market System (HMS) to housing, Akinlusi said that the data system provides one stop dashboard that brings all the stakeholders right from land titling to property construction to mortgage financing and refinancing together, so that the country can have a data driven economy, and so that everyone can see in a snapshot what is happening in the housing market and how it is contributing to the economy.

‘’We can use it as a tool to drive the housing and mortgage market,’’ he said.

The Financial System Strategy 2020 is the blueprint for engineering Nigeria’s evolution into an international financial centre and for developing the financial sector into a growth catalyst that will enable Nigeria’s transformation into one of the 20 largest economies in the world by 2020.

Objectives of FSS2020 includes developing a shared vision and an integrated strategy for the nation’s financial system; developing market and infrastructure strategies that will align fully with the strategic intent of the overall system; creating a performance management framework and building a partnership of all key stakeholders to implement the strategy; and establishing a harmonious and collaborative environment for the development and delivery of the strategy.

By Ojonugwa Felix Ugboja

Lafarge Africa Redeems N26.4bn 3-Year Bond

The series one three-year bond worth N26.4 billion issued in June 2016 by Lafarge Africa Plc has been redeemed by the company.

Lafarge Africa, in a notice today to the Nigerian Stock Exchange (NSE), said the notes were redeemed when they matured on June 15, 2019.

The bonds were sold to investors three years ago when the cement manufacturer launched its 100 billion bond programme.

At the time, the company offered the papers in two series; the first was the N26.4 billion and the second was worth N33.6 billion.

While the series one, a three-year tenor, was sold at a fixed coupon of 14.25 percent, the series two, a five-year maturity, was issued at a fixed coupon rate of 14.75 percent.

According to Lafarge Africa, the three-year notes, which matured this week, redeemed “from internally generated cashflow.”

“Lafarge Africa Plc announces the redemption of its matured N26.4 billion bond due on June 15, 2019.

“The company registered a N100 billion bond issuance programme in June 2016 out of which the sum of N60 billion was issued in Series 1 and 2 of the programme.

“The matured Series 1 Bond was issued on June 10, 2016 with a 3-year tenor and at a fixed coupon of 14.25 percent.

“The company, leveraging on its performance, its recently concluded rights issue as well as management strategic plans to systematically deleverage the company, has redeemed the Series 1 bond from internally generated cashflow.

“The outstanding balance of N33.6 billion represents Series 2 of the N100 billion issuance programme at a fixed coupon rate of 14.75 percent, a 5-year tenor and matures for redemption in June 2021,” the cement firm said.

Source: Businesspost

No impact on lending 3 months after interest rate cut – MPC members

Almost three months after the Central Bank of Nigeria (CBN) cut its benchmark interest rate by 50 bps to 13.5 per cent, in March 2019, lending to the private sector continued to decline with attendant high cost.

This was the position of members of the Monetary Policy Committee (MPC) who participated in the last meeting held last month, as released on Tuesday by the CBN.

Total banking industry credits declined by 0.58 percent between April 2018 and April 2019, a trend that has persisted since 2017.

“This is a worrisome development given the slow and fragile economic activity in the country,” said Godwin Emefiele, governor of the CBN in his personal statement.

Maximum and prime lending rates rose in April, while rates on consolidated demand, savings and terms deposit declined, further worsening the gap between the average lending and deposit rates.

“It is also disappointing that the decrease in the MPR in March has not impacted in expected way on rates at the retail end of the credit market, although rates on intermediate financial assets decreased”, Adeola Festus Adenikinju said in his personal statement.

He said coordination between monetary policy and fiscal policy is important to ensure that current policy interventions have the desired impacts on the economy. He argued that fiscal deficit was high and worrisome, while government debt was rising in the face of underperforming revenue, and security is a major challenge, posing significant threat to investment and economic growth.

However, industry capital adequacy ratio (CAR) increased marginally to 15.60 per cent in April 2019 from 15.14 per cent in February 2019, while Non-Performing Loans (NPLs) decreased to 10.95 per cent from 11.28 per cent. However, the NPLs ratio is still higher than the prudential limit of 5.0 per cent. Other vulnerabilities in the industry include high concentration and contagion risks as well as significant FX exposure.

These conditions have tended to increase averseness to risk in the industry, leading to some form of asset substitution. It is especially worrisome that credit to the private sector is declining and this needs to be halted and possibly reversed to strengthen economic activity and job creation.

“In arriving at a decision at the May MPC meeting, I reckoned that the effects of the downward adjustment of the MPR in March had not fully manifested and that downside risks to growth were quite strong”, Edward Lametek, deputy governor said.

Although, interbank rates slightly eased in response to the adjustment in the policy rate, retail rates remained sticky downwards. More importantly, credit to the real economy declined.

From March 2019 and May 2019, a survey of central banks revealed that only Nigeria reduced her policy rates, while others held their policy rate constant.

These included the Fed, Bank of England, ECB, Reserve Bank of India, Bank of Japan and Peoples Bank of China, all of which retained their policy rate in response to the prevailing uncertainties in the global economy.

Balami, Dahiru Hassan explained in his personal statement that the reduction in the NPLs was driven by write-offs and recoveries. There was also increase in provisioning by banks for NPLs in the review period.

Similarly, the industry liquidity ratio (LR) rose further from 51.05 percent in February, 2019 to 52.61 percent in April 2019.

 

By HOPE MOSES-ASHIKE

Best Universities in the World to study Architecture (2019)

1. Massachusetts Institute of Technology (MIT), United States

MIT has consistently bagged the first position amongst the best universities in the world for architecture.
Its school for architecture was the first of its kind in the US. It was founded in 1865, 4 years after the institute was founded. It is known for introducing modernism to the US and also, for commissioning progressive buildings.
With only 25 students in it’s M. Arch program classes, MIT is known for providing its students with an excellent atmosphere. The small class sizes ensure enriching debate amongst the students and teachers.

Best Universities in the World to study Architecture (2019)

Massachusetts Institute of Technology

2. The Bartlett School of Architecture, United Kingdom

UK’s Bartlett School of Architecture ranked second behind MIT. Established in 1947, this is one of the 11 constituent faculties of UCL.


It claims to be the first architecture school founded in the UK. With faculties known for experimental and original research and for developing the space syntax, it is no surprise that the Bartlett School of Architecture is one of the best universities in the world.

Best Universities in the World to study Architecture (2019)

The Bartlett School of Architecture

3. Delft University of Technology, Netherlands

This university, based in the Netherlands, retained its third position in architecture ranking. The Faculty of Architecture in TU Delft is the largest with 3000 students.
With its proudly multinational image and challenging masters degrees, they draw on the Dutch tradition of multidisciplinary practice that is, students, work in groups to produce holistic solutions.

Best Universities in the World to study Architecture (2019)

Delft University of Technology

4. ETH Zurich (Swiss Federal Institute of Technology), Switzerland

Switzerland’s ETH Zurich is recognized as one of the most highly regarded universities for architecture. The Department of Architecture was founded in 1854 and has 2000 students. The success and good name of ETH Zurich are majorly due to its brilliant teaching and research results. This university focus on broadly defined built environment issues.

Best Universities in the World to study Architecture (2019)

ETH Zurich

5. The University of California, Berkeley (UCB), United States

 

The University of California, Berkeley is known for their research and for encouraging independent design. The architecture degrees focus on aesthetic, cultural and technical components of the design. With award-winning faculties and professors who are innovative thinkers and designers, it is understandable why UCB is one of the best universities in the world.

Best Universities in the World to study Architecture (2019)

The University of California

6. Harvard University, United States

Many famous and influential architects, landscape architects and urban planners have graduated from Harvard’s Graduate School of Design. Architecture courses first started in Harvard in 1864, and today the department has a rich diversity and boasts of a unique community. It promotes collaboration by exploring new ways of thinking.

Best Universities in the World to study Architecture (2019)

Harvard University

7. Manchester School of Architecture, United Kingdom

Manchester School of Architecture is an innovative collaboration between Manchester Metropolitan University and The University of Manchester. This has united two schools of architecture with over 100 years of educational experience to create one of the largest architecture schools in the UK.

8. University of Cambridge, United Kingdom

With the academic popularity of the University of Cambridge and the setting of the medieval city, studying architecture here will leave you with a unique experience.

Best Universities in the World to study Architecture (2019)

University of Cambridge

9. Politecnico di Milano, Italy

With about 42000 students, The Politecnico di Milano is the largest technical university in Italy. Many renown architects studied and now teach, at Politecnico di Milano.

Best Universities in the World to study Architecture (2019)

Politecnico di Milano

10. National University of Singapore (NUS), Singapore

NUS’s Department of Architecture of the School of Design and Environment was founded in 1969 and offers a wide range of programs including landscape architecture, urban design, urban planning, and integrated sustainable design. It offers its students opportunities to choose from creative paths fitting your design talent and research interests.

Best Universities in the World to study Architecture (2019)

National University of Singapore

Source: Arch20

Property Practitioners Act: What landlords and tenants need to know

The Property Practitioners Act now just needs the president’s signature to come into effect, and when it does it will bring about many significant changes in South Africa’s property sector.
It will not only replace the Estate Agents Act, which has been in force since 1976, but will considerably broaden the scope of that legislation to cover commercial property brokers, bond originators, home inspectors, home owners’ associations, companies selling timeshare and fractional title, property developers and property managers as well as “traditional” estate agents.

The new legislation also defines a managing agent as anyone who collects or receives any money payable in respect of a leased property or business undertaking or who provides, procures, facilitates, secures or otherwise obtains or markets financing for or in connection with the management of leased properties.

Protection for landlords and tenants

Thus everyone who sets up in business to let and manage rental properties will now fall under the provisions of the new Act as regards trust accounts and the management of client’s deposits and monthly rentals, for example, and that means better protection for both landlords and tenants. All managing agents will also need to hold a valid Fidelity Fund Certificate (FFC) in order to claim commission on any new or renewed leases.

The Act also provides for a new Board of Authority to replace the current Estate Agency Affairs Board, as well as further protection for landlords, tenants and other consumers of property services in the form of a separate and independent Property Practitioners Ombud to deal with any complaints against property practitioners.

The new law allows for both mediation and adjudication as part of the process for dealing with such complaints, and this should help the Ombud’s office to resolve most matters quickly and efficiently. However, it is important to note that disputes between tenants and landlords will still need to be taken before the Rental Tribunal.

Other important provisions of the new legislation for landlords and tenants to note include the following:

  • A defects disclosure form is now a mandatory part of any property sale or lease agreement. The Act says that a property practitioner may in fact not even accept a mandate to sell or let a property without a disclosure form from the seller or landlord. What is more, if a disclosure form is not included in a sale or lease agreement, that agreement will be interpreted in law as if no defects or deficiencies were disclosed.
  • The buyer or tenant of any property can request the sale agreement or lease in whichever of SA’s official languages they prefer, and the seller or landlord or managing agent must comply. To assist them, sample contracts in all languages are to be provided on the new Board of Authority’s website.
  • In order for a property practitioner to legally claim commission on a property sale or lease, every other property practitioner in their agency must also hold a valid FFC. To qualify for an FFC, the practitioner themselves must produce a current tax clearance certificate and any appropriate BEE certification. What is more, practitioners who don’t have a valid FFC when a sale or lease contract is signed could be required to refund any commission paid by the property seller or landlord, on demand.

Source: BizCommunity

porno - mobil porno - türkçe porno - sex izle - seks hikayeleri - sohbet numaraları
Translate »
escort sakarya escort edirne escort kayseri escort konya escort ısparta escort bornova