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Cape Town, Western Cape, South Africa
Lake Properties, Cape Town is a young and dynamic real estate agency located in Wynberg, Cape Town. We offer efficient and reliable service in the buying and selling of residential and commercial properties and vacant land in the Southern Suburbs including Bergvliet,Athlone,Claremont,Constantia,Diepriver,Heathfield,Kenilworth,Kenwyn,Kreupelbosch, Meadowridge,Mowbray,Newlands,Obervatory,Pinelands,Plumstead,Rondebosch, Rosebank, Tokia,Rondebosch East, Penlyn Estate, Lansdowne, Wynberg, Grassy Park, Steenberg, Retreat and surrounding areas . We also manage rental properties and secure suitably qualified tenants for property owners. Another growing extension to our portfolio of services is to find qualified buyers for business owners who want to sell businesses especially cafes, supermarkets and service stations. At Lake Properties we value our relationships with clients and aim to provide excellent service with integrity and professionalism, always acting in the best interest of both buyer and seller. Our rates are competitive without compromising quality and service. For our clients we do valuations at no charge
Showing posts with label #value of my house. Show all posts
Showing posts with label #value of my house. Show all posts

What are the consequences for an executor of an estate who pays himself before the estate has been finalized in South Africa?

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Lake Properties                   Lake Properties

Here's a more detailed explanation of what can happen when an executor pays themselves prematurely in South Africa:


Legal Context and Executor Duties in South Africa

When someone dies, an executor is appointed to administer the estate in accordance with the Administration of Estates Act 66 of 1965. The executor is responsible for collecting and valuing assets, settling debts and taxes, and distributing the remainder to beneficiaries. This process is supervised by the Master of the High Court.

Because of the sensitive nature of the position, the executor is a fiduciary — they must act in utmost good faith, transparently, and in the best interests of the estate and beneficiaries.


Consequences of Paying Themselves Prematurely

1. Breach of Fiduciary Duty

  • The executor is not allowed to benefit personally from the estate outside of the agreed-upon remuneration.
  • If they pay themselves without approval or before settling all debts and finalizing accounts, it's considered a breach of fiduciary duty.
  • The Master may consider the executor to have acted in bad faith or negligently.

2. Personal Liability

  • The executor can be held personally liable for any loss the estate suffers because of their actions.
  • For instance, if they pay themselves but later discover a creditor claim that the estate can no longer cover, they may have to reimburse the estate from their own funds.
  • In such cases, they may also have to pay interest on the unauthorized amount they took.

3. Removal from Office

  • The Master of the High Court has the authority to remove an executor for misconduct or incompetence under section 54(1)(a) of the Act.
  • Misconduct includes acting without approval, concealing information, delaying the process, or self-dealing.

4. Civil Litigation

  • Beneficiaries or creditors can bring civil claims against the executor.
  • They can ask the court to order repayment, damages, or removal of the executor.
  • If successful, the executor may also be liable for legal costs.

5. Criminal Charges

  • If the executor’s actions amount to fraud, theft, or misappropriation, criminal charges may be laid.
  • This would be especially applicable if there was an intent to deceive or conceal payments.
  • Conviction could lead to fines or imprisonment, depending on the circumstances.

Proper Procedure for Executor Remuneration

Executors are entitled to be paid, but the process must be followed strictly:

  1. Standard Fee: Up to 3.5% of the gross value of the estate plus 6% of income earned after the death.
  2. Approval Required:
    • The fee must be disclosed in the Liquidation and Distribution (L&D) Account.
    • The account is submitted to the Master for approval and then advertised for inspection by interested parties.
  3. Payment Timing:
    • Executor fees are only paid once the Master approves the L&D account, and all objections (if any) have been resolved.
    • Premature payment is considered a violation.

Practical Implications

  • Delays: Unauthorized actions can delay finalization, cause objections, or trigger a Master’s investigation.
  • Disputes: It may lead to conflict among heirs, and affect trust in the executor.
  • Reputation: If the executor is a professional (like an attorney or accountant), it could damage their career or professional standing.

What Can Be Done If This Has Happened?

If you suspect or know that an executor has paid themselves improperly:

  • Write to the Master of the High Court (where the estate is registered) with details and evidence.
  • Request an investigation and potential removal under Section 54 of the Act.
  • Consult an attorney to assist with recovering funds or initiating legal action, if needed.

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What is the process for cancelling a mandate to sell a house,in South Africa

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Lake Properties                     Lake Properties
The process for canceling a mandate can vary depending on the country, the type of mandate (e.g., bank mandate, legal mandate, or healthcare mandate), and the specific institution or organization involved. However, here are the general steps involved in canceling a mandate, specifically in the context of a financial or payment mandate (e.g., direct debit mandate):

Steps to Cancel a Payment Mandate:

  1. Review the Terms and Conditions: Before proceeding with cancellation, check the terms of the mandate to see if there are any clauses regarding cancellation. Some mandates may have notice periods or other requirements.

  2. Contact the Relevant Institution:

    • Bank Mandate: If it's a direct debit or standing order with your bank, you may need to contact your bank directly to cancel the mandate. This can often be done through online banking, by phone, or in person.
    • Service Provider Mandate: If the mandate is for a service, like a subscription or utility, contact the service provider directly (via phone, email, or their website) to request cancellation.
  3. Provide Necessary Information: Be prepared to provide details such as the mandate reference number, your account details, and any other information that the bank or service provider might require to locate the mandate.

  4. Confirm Cancellation: Ensure you get written confirmation (email or letter) that the mandate has been canceled. Keep a copy for your records.

  5. Monitor Your Account: After canceling the mandate, keep an eye on your bank or service provider account to ensure that no further payments are taken under the mandate.

  6. Follow-Up (if necessary): If payments continue after cancellation, follow up with the relevant institution to resolve the issue. You may need to escalate the matter to a higher authority within the organization.

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Difference between a unit or section in a sectional title complex

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