TUTORIAL $1$

Philani buys a house from James. James remains in the house until the property is registered in

Philani's name. The agreement is subject to the condition that Philani obtains finance from the

building society to pay the purchase price. Discuss the legal position where the house is struck

by lightning, and is damaged in the ensuing fire:

Before Philani has obtained finance.

$(6$ marks$)$

After Philani has obtained finance but before transfer of the property has taken place.

$(6$ marks$)$

Assume that the house has not been damaged in any way, and Philani has taken

occupation and ownership of the house. Philani is contemplating leasing out the house as

a holiday home. Advise him fully on what his duties would be towards the lessee, as well

as the lessee's duties to him.

$(10$ marks$)$