Check your zoning rights before buying a residential property for business use

Posted On Wednesday, 07 February 2018 17:18 Published by
Rate this item
(0 votes)

How often do we see those adverts “perfect for home-office” or “ideal for business” on an estate agent’s advertising platform and take it as a given that the said property is in fact ‘ideal for business’? But often these advertising statements are either loosely, incorrectly or deceitfully used in order to make a property more attractive to buyers.

PJ_Veldhuizen_

PJ Veldhuizen, CEO of Gillan and Veldhuizen attorneys, who have a specialist conveyancing and property law division, warns both estate agents and buyers of the danger of not checking if a property you are buying or selling for commercial use is zoned correctly.

The Zoning Scheme Regulations laws are aimed at achieving systematic and rational development of land and land use in an area of jurisdiction. The purpose naturally is to achieve a proper balance between competing rights and the interests of residents. Part III of the Zoning Scheme Regulations serves to determine use zones and the uses to which property in those zones may be put. Regulation 3.11 allows for the practice of a profession or occupation from home. Professionals such as lawyers, doctors, dentists or architects often opt for this type of property as it is most suitable to their commercial needs.

In a recent case in Grahamstown, the court ruled that the owner of a day spa, who was operating her business from her home, was in contravention of the Zoning Scheme Regulations and interdicted her from using her property to trade as a business. Commenting on the ruling, Veldhuizen said that it was reckless for Estate Agents to advertise such properties without checking with the town planning division on the zoning rights. “Often estate agents will be told by the seller that the commercial rights are sound and will not do their own due diligence and check the facts. Estate agents and sellers could find themselves in trouble as a complaint could be laid at the Estate Agency Affairs Board and, furthermore, a claim may lie against the Seller due to a fraudulent misrepresentation.”

Re-zoning of a residential property for business use is a specialised service which requires the assistance of a Town Planner and usually an attorney – the process is not a simple one, nor is it speedy, and business owners could find themselves unable to run their businesses while waiting for re-zoning approval.

Most Popular

Residential sectional title sales again on the rise

May 27, 2021
Andrew_Golding_Golding_PropertyGroup
Over the past 15 years, the sectional title market in South Africa has become entrenched…

Ongoing property market uncertainty makes the right finance partner key to extracting value

May 26, 2021
Claire Denny
Results from the listed property sector in 2020 showed property values reducing by an…

Pick n Pay and Fortress co-invest in a super distribution centre development

May 26, 2021
Fortress_Pick_n_Pay
Fortress REIT announced that their biggest logistics development to date was signed with…

Exemplar REITail declares final dividend of 49.07 cps and announces 100% distribution

May 25, 2021
Mall of Thembisa
Rural and township retail specialists, Exemplar REITail, have declared a final dividend…

East Rand Mall will soon deliver the first phase of its major taxi rank upgrade

May 26, 2021
Phase 1 upgrade to the taxi rank at EastRand Mall
The first-phase upgrade of East Rand Mall taxi rank in the retail heart of Boksburg,…

Please publish modules in offcanvas position.