ae IN THE HIGH COURT OF SOUTH AFRICA (GAUTENG DIVISION, PRETORIA) 4313 /16 Inte meter btn PROX! SMART SERVICES (PTY) LTO popsant THE LAW SOCIETY OF SOUTH AFRICA Frat Reepondent ROGER DIXON Ted Resondent THE MINISTER OF JUSTICE & Four Resonent CONSTITUTIONAL DEVELOPMENT THE ATTORNEYS FIDELITY ro ETE Ge A eg TAKE NOTICE THAT the Applicant intends to apply to this Honourable Court, on res tes “SNE at 10h00 oF so soon thereafier as Counsel may be heard, for an order:*Q Declaring that the performance of the steps involved in the process of transfer of ownership ofimmoveable property (the transfer process’ in accordance withthe model described more fully in te founding affidavit, and pursuant io which the Applicant performs the slaps in the transfer process identified in schedule FA4B! hereto, does o” would not 4. Contravene or otherwise fll fou of 1.4.4. $83{6)(a)() ofthe Atomeys Act 53 of 1979 14.2, £83(3) of the Legal Practice Act 28 2f 2014; 1.1.3. s15and 15A of the Deeds Registries Act 47 of 1937 (the Deeds Registries Act); or 1.1.4, — Regulations 43(1), 44(1) and 448 of the regulations made under the Deeds Registries Act and published in (GN474 of 1963, 1.2. Otherwise constitute the performance by the Applicant of conveyancing work reserved by law to an attomey or conveyancer. Directing that the costs of this application be fal only by those Respondents which oppose the ele sought herein and inthe event that there is opposition by more than one Respondent, sues Respondents shall be liable for costs on a joint and several basis, such costs to include the costs of two counsel3. Granting the Applicant such further andior alternative relief as this Honourable Court may deem fit TAKE NOTICE FURTHER that the Applicant has appointed the offices of Loop Street, Edward Nathan Sonnenbergs Ine, 1 North Wharf Squz Foreshore, Cape Town clo Friedland Hart Solomon and Nicolson, Block 4, 301 Monument Office Park, 79 Steenbok Avenue, Monument Park, Pretoria, as the address at which it will accept notice and service of all process in these proceedings TAKE NOTICE FURTHER THAT the affidavits of Gareth Edward Griffiths and Reger Dixon wil be used in support hereof TAKE NOTICE FURTHER that if the Respondents intend opposing the relief sought here they are required! Todelver to the Applicants 2 notice of opposition and to appoint in such notice an address, within fifteen) kilometres of the office of the Registrar ofthis Honourable Court, at which they wil accept notice and service of al process in these proceedings within fiteen (16) days of receiving this application; (l) To deliver any affidavits they may desire in answer'to the allegations made ‘by and on behalf ofthe Applicants within fiteen days aftr they have given ‘notice of intention to oppose the application.ly TAKE NOTICE FURTHER THAT should the Respondents fal to fle a Notice of “preston. he matter wil be set down for hearing on an unopposed basis on SB ecectes 2016 KINDLY PLACE THE MATTER ON THE ROLL FOR HEARING ACCORDINGLY, ‘Signed at PRETORIA on 19 SEPTEMBER 2016. To: AND To: GERHARD PAINTER EDWARD NATHAN SONNENBERGS Attorneys for the Applicant 4 North Wharf Square Loop Street, Foreshore CAPE TOWN Tel: 021-410 2500 Fax: 021 4102555 E-mail: qvanniekerk@ensattica, , ebrand@ensaica,cor (Ret: GvanNickerk/EBrand) clo Friedland Hart Solomon and Nicoison Block 4, 301 Monument Office Park 79 Steenbok Avenue Monument Park PRETORIA (ef G Painterta35509 The Registrar Gauteng Division ofthe High Court Pretoria snes, 24x’ sey, Menio Per, morse oe Pretoria ses veer eee 1908 HVT paohie, Gb 77AND To: AND To: AND TO, AND To: ‘The Chief Registrar of Deeds Second Respondent Rentmeester Building, Room 501, ‘lo Booman and Pretorius Streets, Pretoria, Roger Dixon Imird Respondent 4st Floor, No § Riley Road, Bedtoraview The Minister of Justice & Constitutional Development Fourth Respondent ‘329 Pretorius Street (clo Pretorius and Sisul Streets), Pretoria ‘The Attorneys Fidelity Fund Fifth Respondent 5 Floor, Waalburg Bulling, 28 Wale Street, Cape Towns& Schedule FASS, ‘Schedule of tasks performed by the Applicant in a TYPICAL transfer of immovable property fon Pros lass carmen trom receipt of Prox’ Adminsvaion Services ‘Appointment tem he | PRIOR TO CONCLUSION OF THE DEED OF | sat, Ts cout occur | save Prieto the deot of ato bing signed by seer and purchaser row contsets the sale fo eben 8. copy ofthe sels dently document, Proof fhe see's ational tus, & Ober det whch could expede the transfer process once the deed of sales etvered. These coud include FICA documents, tx documentation and banking ests, 4. Information egarsing @ morgage bond over the propery, Prot wil natty he seer ofthe benefisofprviing he mortgage bank with notice of cancliaton of the existing ‘motgage lo avoid penal arsing fomIn the event that the eller requasts Prox roves pratiminary noice tothe mortage bank as lscussed at | Prox opens translerasminisaon fle on ts system in anicipaton of eceving te spred deed Of sale. This involves Prox pecorming 2. an electronic sear (avasabie to he public through various webcites) onthe property and sles and proving feedbackto the estate agent variances ae fune between to information proved by the seer in he ‘Adranisaton Services Appiniment and Prox searches, creating an electronic FICA Neo he eters leformaton, capturing seer and property deta ito te Pros adminstaton software captire alts of Prox'sprocersadminisaton sofre, Regarding 3b. Proxiis an ‘accountable inetton for FICA purposes. (Schedule 4112 Act 38 of 200%), Regarding e The process 2eminsraton sofware to be uses by Prox wi not exit Proto perform any Reserved Work Ihe estate agency has captured buys, seller or roperty-eated inermaton no the eae agency's tansacton management sofare, ten that data wit populate Prox’s process uminitaton eafvare cape fds ty vito ot an AP (ie an electronic ntracs) wit Prox Prox automaticaly verifles the estate aponcy- _2ptued informatio, ard wl flow upwin the ‘estate agency inthe event f inconsistencies in iniormaten. Thus any itsues in connection with Estate agencies oten capiure client snd property etal on tho ofce IT systems. This data can be ilies to pops Prox ata capture fields via a sofware intrtace between Prox softare and the estate agency software‘he deaisofhe entity fhe seler oF he Propet are resolved in advance of he sale, riigating os ie ater on Note: an APlis an ‘Apeaton Programming Interface which afows one producto service otk 10 another product or ence over he intr, ‘AFTER DEED OF SALE IS RECEIVED FROM | ESTATE AGENCY “A senior stat member t Prox wi sty the seed of sale and estabich the transaction timeline, potential bottenecks ane erie path (he transfor program) Jeading up othe agreed ranstr date ‘recorded inthe dead of ele, program esc step in the ransacton into Prox's werk flow management system to ensure that each tak is completed on te thereby assiting the nked conveyancer (see the aacent ote} perorming the Reserves Work to procure timeous ‘epistraton of anstr. upload a copy ofthe deed of ele, Proxies ‘Administration Services Appointment, he transer program an the purchaser and /or ‘lle’ FICA Information tothe e-HUB where the conveyancer performing he Reserved Work fre vansfer and conveyancers erlorine inked (ested) registrations wil be given acess to view or download -documentaion as applcabe thelr asks and respons in th transaction | register bonds. inked Regarding 52 8 Pro will employ suitably experience indus to review the deeds of sale end program the sequence lth anster documentos Inthe deed of sale Regering Sc Proxiwit | provide a secure server on which wi ou, ina ocumentrepesion, transacton pectic information tobe shared on ‘permissions bass with tne rked coneyancers appohted o register ‘rancor and cancel oe conveyarcerepersing under a Legal Services conweyancer appointed by the bank register the bank's morgane (the bondtone) or the conveyancerineructd by the current marigagee bank to cancel he exsing mortgage (the bond cancelatonatomay). ‘The serveris refered o 23 the esHU nth ‘document ‘As warty a possible inthe transfer process, Proxi contacts fhe local authorty and 1 of body corporete rates sno ey clearance ures. Body corporates re approached fer ery ‘assessment should the property be pat ofa sectional te scheme, Diterent munities require aterent supporting documants when apling Tor rate clearance faures ‘soit mightnot bepossile {0 apy for gre at this stage in ooch cate. not, ‘hen twit be dove 08 eary ‘28 poet but peeraly otter than hostage set outatgara20 be. Proxirecoives rates an /orovy clearance fgures 2d a caleultion fe peered toprorate what ic ‘dv between seller and purchaser tased on the projected wanser occcupaton date The partes ate each reeponibe fer «potion of ‘he clearance sun. row calculates the franca eects ofthe transfer for the purchaser and sai This information isset out n a pro forma statement of acount for ach pay. 8 out, by way ofilastaten the ameunt due to Prox or is adminsaton fee, amounts due to SARS for ransfer duly an to the loc authenty for rates clearance; the depost payable or paid ‘on account ofthe purchase price; and te amount for which the purchaser’ bond wl be regstere, applicable ‘The seers proforma ststement includes, by way of lusraton, amounts due by he seller suchas the estate agency commission and an amount eto he exiting heme loan, The pro forma statement to te seller ensures that the seller's | cotpatons are adequately covered trom the proceeds of sale, fang wich Prox acke the seller to make 2 payment equivalent to the ‘shotalinto the seers cent investment account. (See the Remarks column relating to para 9 below fer futher deta ip rogers to the investment sccounts opened inthe name ofthe buyer and ler especivey) ee roll prepare communiatios ta 2 the conveyance appointed by the eller to ror the Reserves Workin terms ofa Legal Secs Inebustion granted to the conveyancer drt om th seller. The communication wil advise that Prox is appointed byte sale to prfoem ministration services in terms of Adminstration Series Appointment, confirming tra the sllerhas informed Prox! tthe pepe i @sectonal tite nia deeds search wil be permed by conveyance pcfoing the Reserves Work to check on real righ of extension for the comeyancer to certty ito st599“Hl “Wa he conveyanea ie appointed to pero ‘te Reserved Work in ems ofthe Legal ‘Services instruction and thatthe gle has requied tn ranstr to be managed in accordance withthe Peal! Mandate Management Agreement in pace between the conveyance and Prow. The conveyancer willbe provided wih 2 pasoword to gah ascese te the @ HU on hich the captured data source documents abe located, Soures documents wi Incude, by way of ustation, senty documents FICA documents, roa of ‘mation eats, Daeds Rept printouts and searches and he ike. The transfer rogram seting out Pox’ service level tings and deiverabes wil ato be located ‘on the e-HUB, The linked conveyaneer can then access whslever source documents he oF she determines wil be useful in preparing ‘he Reserved Wiork legal documents relating to that particular transfer te purchaser aovisng tat Prox! hasbeen sppoited by the ster to parr the ‘Adminstration Sauces, Pros wil ack for proof of fifiment of suspensive condions ‘2d request data surce dacument euch at ‘denity documents and proof of acer at pat Prox'srequled FICA process Prox ‘so sends the purchaser a proforma statement of accout (fr further information see ara 8 above). Prox opens 2 clnt investment account inthe purehaee's name and bank oa are sont the purchaser wah a request to pay the amounts refietng ‘on the proforma ssteent of account nto Proxi operates = clents bank —secount under autoriy darved fom the cents banking mandate Pro's ertenal FSB compliance tiers tasked ith regular cud of Prox’«\Q ‘ha prchasers cet vetimant account ‘Te purchasaris sent Prox banking ‘mandste to sign and retum to Prox! canaining the purchase’ instuctons as to how Pro isto manage the purchasers {unds in processing the transfer ogeter with ‘at acosures and other aepacts 28 ore quid in terms of he Financial Sences Board's requirements. ‘ete under he banking mandates end Proxi's autor: certity similar raters annual tote FSB, (This is in tems of 817 and 18 ofthe Financial Advirs and Intamediry Serves et27 of 2000) ‘As deat with more fly in the-slerconfiming that Prox has received |e founding aida, ‘he sles instuctons to parorm the | vera calgon _asrministraton series ters ofan Inouance oe quad — by ‘Admisaaton Services Appointment and the relevant banking requesting any outstanding source Instutons and the FS8 28 ecumenation, Pros sands tne eller po {oma statement of account (se para 8 above) and einer information relevant othe raster, Prox opens a cent investment account inthe sole’ name and bank dtas are onto the slr wth a request to pay {he amounts efecing on he proforma statement of account. The sellers alzo sent Prox banking mandate to sign and ret to Prox containing the seers instructions as tow Prax! is to manage the sales unas ‘processing the tranefer anda uch acoaure and other requirments of he Financial Series Board. pwerequites for operating clon bank accounts ‘he exiting mortgagee bank nothing hat 2 sale has been concluded in respect of he propery, respective of whether o not preliminary netifleaton was given at the stage stout in para 2 above. The mortgagee bank wil be asked to inst itsa> “Sppome aomays cancel ne @sirG morgage bond an to provide Prox wth ‘oples of eile deed and exsting bord anc to provi seta ore amount requires to ‘Sete he oastanding home fan. |e messite aiency confiing tht Prox has received the sole’ instuetonso undertake ‘he admiration services in tes of he sallersAcmintation Services Appointment, ‘hat Prox nas received he dese of ale and ‘hat thas noted he estate agency's sales commision hats payable against ranser ‘Arrangements are made ato who wil Inst elated serves providers such a 29 tentomelogs electical instalation inspector and ober. Where applicable, the estate agency is asked o supply proof hat the purchasers paid te deposton account of the purchase price into the estat agency's trust accountant confirm thatthe deposit \witbe avaiable when calle for before the lodgement date, Tha eetata agency ecuires to provie its banking tail for payment ofthe sles commission. 10 Prox ecewves copes ofthe exitig tle deed, | mongage bond and the bank's merigage bond |carcelaon igre win a request x @ nancial | guarantee trom a bank fo sete the home loan | balance against tanster and bond cancelation, ‘These documents ang requests come fom the ‘modgage bank via the bond cancelaion attorney. cancelsion fiures fo the e-HUB for ines Prot uploeds copes of the exist We ceed, mortgage bond and the bank's mergege bonda lA comeyancers lo access as and when they conser it ute todos. Prox receves notion and proof tom the estate agency that the purchaser's depost has been receved ino the estate ageneys tst ‘count here aeceable 3 row! noifles the seler thal the purchaser's epost has boon received, where appscabl Prox receives nolifeaton rom the ebtale agency thatthe purchasers bond is approved wih a copy of the letter of approval Prox! requests and ‘eceives notication that any ther conditions precedent are hie, 7 Prod niles the slr thatthe purchaser's bond | approved and that any other condtons | precedent are flies |18 row recaives @ communication fom the bend stomey wits te amount avatble on registration of he purchaser's bond, b. arequostfora tly shoot (Le. the rat new tie dees forthe uscoming vanslr ‘The fy sheet wil be | 18 prepared bythe convoyancer performing the Reserva Work and wil be Uploaded te the HUB, allowing te bond attorney ‘Proxi wil recheck the amount evatable on transter | ‘2nd wil vse the bond cancelation atlorney of the amount avaiable on transfer to salty the bond cancion ures ‘The amountavatatiewitbe | 20 asumottheproseeds ofthe purchaser's home loan, purchaser's depos on account of purchase pres, ‘and sry futher cash containss |S Prox regulary checks and recaeulates the. francal postion of the transfer to ‘ensure that al wansacton creditor claims (reusing SARS) can be mat wth be avalable funds. The vransacion france statements re revised and shared via the HUB as. ‘ew infrmaton comes 10 } toh Pronk nates the eamveyance pevfoming De Reserved Werk that = 2 acopy othe exiting ite deed has been added to the-HUB 1b. the process adninistation software capture fel have been sopulted with aon information that be conveyancer may, at his ‘ore election win preparing the vansfer documents a 19 row Sales with te purchaser and soller to ensure thatthe cost set out in the pro forma statements of acoun (see para 8 above) are pal Into thei respective indvgual cent investment ‘in compliance wih is reguiaon by the Fanci Services Board as nancial services. provider, Prosi ensues that is ‘banking mandate contains the necessary cont }suthorty to deat wih cont funds aa ines. Prox veils that purchaser ‘and seler monies. have been transfered by thoseparies nto ter cfont investment accounts, tos clesrance applcaton documents (some |i hlended tat alee and prepared by the conveyancer perfoming the | levy clesrance fgues be Reserve Wk and iced by himarher othe e- | cbainedatthe sage setout HUB) are downloaded fom te eHUS by Prox | a para 6 above this isnot ‘2nd sent f0the local athony. The sum due to | possbie, then clearance obtain rates clearance is advised by the local | fgures are apples fora authoriy anc paid by rox. ape. Were necessary, arrangements are made with | Diferent local auboties the relevant body corporate for payment tothe | requle diferent supparing body corpo for ly cleerance, ocuments which has the ul tat te earest point ft which votes clearance can be apple for ater per | cal auton. row rwosies rales clearance and lor body corporate dearance documents Prox propars a calculation of the wanster duly payable to SARS by the purchaser. | Prow submits payment of anstor dy to SARS | tom ha purchasers cent nds acount Proteome te SARS transler dy eoeipt “The wansfr duty recit and the rates clearance | ine property is 2 sectoral certcato are forvarded to the conveyancer| tle unit then a tery performing the Reserved Work to place these | clearance cerifcte is not ‘documents ithe lodgement cover relating to the | loge, but kept inthe oes rane wanster tle 95 proot of payment. To prove | etlement_of levies, aof cariicte Ie terms of & 158(3) of the Sectional Tiles fot 95 of 1995" ie lodged. iis prepared and signed 5y the conveyarcer pertorng te Reserved ‘Werk wn caries that he levies have been pad. The erica so deals with ‘he developer's oa ight of row requests he required financial guarantees | Commer functions of the (one or ore, depending onthe cxcumstances) | fancial guarentees are to from the bond tory. ‘te th set's hore loan (the rlovant guarantse bing made payable tothe ‘mortgagee bank) and oto pay the sole the puchase | pice or balance thereot ‘These facil gusantees ae genwa refered o as ‘propery guaranioes inthe conveyancing industry, 28 they are payable against regicraton of wanstr of & propery, ‘There ae various possible ermutaions relating tothe umber and naire of Property guarantses requred in and. partusr propery ‘easter, dependent on factors such a8 whaner there isan jar«IZ T tung morgage bond or whether the purchaser purchases x cash 2 Prox receives the requred nancial guarantees rom the bone atornay 38 2 Pro ensures delvery ofthe marca guaran to the bond eanealaionatomey which snes to sot ho existing bore againt the pope on This wil be in response to the bond cancaiation atomey's request at 10. Prox! enquices whether the proposed lodgement date might present any concerns tolinked conveyancers which could delay the transfor date Lodgement ne arm used to describe presenting the | vanster documents atthe ods ragsty 10 be ‘amined. Ledgement Is Reserved Wok and wal ot be undertaken by Prox, 40 | Prox fess any concerns fom the soked conveyancers which if vata, might require 3 rescheduled lodgement date wih new ldgerent timelabie, Proxi will adjust the lodgement timetable accordingly ‘Any prospest ofa delayed ale tes immecatly communicated to cents, estate agent and other intrested partes a 2 Prox wil oti te estate agent of the expected lodgement date Prox confirms with the estate agent that a “poripera service condions' have been filed Po slo etabishes the fees due in espect of ‘any inspections that may be required. The related costs are generaly for the sles sccount tobe sted out of he proeeds of the sale ‘an example of pecgherl service conton ls the provision by he seller of an siectical compliance cerifeate. The provision of ater compliance a2 48cert also fala within this catogory Pron ecsives the peihera service ceretes| and invoees ‘rox advises the ster of heamounts due forthe ecpherl service costs and rquests he sellers Instructs for Proto sete these sevice costs. upon transfer Prox recalustas the Wansacton finances to onsure that here are slit funds to stl the parpheral sevice cote Prox prepares. and. senas undertakings 10 Deigheral service credtors on the seers instructions Prox sends pre lodgement racial statements ‘he purchaser and slr Prox! call for any funding shorts tom the This means that If the sum purchaser andr saller of the cle of ransacton edtors against the seller exceed amounts due the sll inthe transaction at the projected tanser date, than the color wil be asked {0 depos sdational funds Into the setors. lent investment eccount, so that there wil then be sutcient funding fo mast al equred payments on the transfer ate om the sate’ centander daie. The same _pples tote purchaser. Prosi motors the deposit or transfer of the hota rom the purchaser andr sal into the relevant clot investment account | Prox calls for the estate agency to pay the purchaser's depost into the purchasers clent Investment account “The purchaser's depos ie the deposit on account of the purchase pce which ie ‘ny ther amount agreed ponin he deed of sale, st “ ‘Shout be necessary to do so, Prox wil request the banking insttuion at which the relevant | investment account i held fo issue @ franca! guarantee (eguinst the proceeds of the purchaser's cont vestment account in favour of 2 particular ransacton cred. ‘As a1 example, the bond cancion atlomey canceling the sellers fevistag home toan rmorgege might rule & francat guarentee for the purchasers depost against the proceeds of the purchasers lent Investment account ayate against vonser. The day before the scheduled lodgement te, Proxi wit make contact with all ked onveyancorst infer them thatthe lodgement at the ne dy = 3 ‘nee the tanster and related documents are ‘edged, Prox repos the lodgement to the >urchaser,sller and estate agent “4 ‘nearing tom the Reserved Work conveyancer hat tho batch is_avalble to hand in for 37a O\ regiseaton, Prosi wil nolty the other linked conveyancers that he Bach Is avaiable to and In for regisation so that they cat obtain Pormision from te ln to hand the elevant currents infor registation Prox wil perform frat franca eakulatons, Closing day statements of account ae awn and transoton frances are balances 1 8 rox wilcllhe inked conveyance to stabish Ir may e ready to hand in thee docurents for registration 30 a7 Ite inked conveyancers ae nt readyto do so, | nen the bah of ceeds is hel over and not handed in for @ certain number of ys (tallng ich he bate is eecte), 61 a I? he tne conveyancers are ready to hand in Prox! commuricaee wih all the nked comeyarcers to ensure that the deeds are handed nfo: registration the ftlowing day “0 Prox informs the conveyancer performing the region ar ote handed in te fotoeng day. 0 Prot informs the conveyancer performing the Reserved Work 1. thatthe raneaton io be registred the fotoing dy, and who the inked conveyancers’ deeds egy tendees ae The keked conveyancers right _use_corespondent attomeys at the deeds registry,‘Upon —noiication from the convayancer perorming the Reserved Werk that the deeds have beon registred, Prox notifies altransacton paris of rgisation, vi b. purchaser 1. toeal auborty t body corporate ters Noiication of reisraion of Wanster by the conveyancer pertoring he Reserved Work | vggers 8 number of payments to be made | pursuant to he francial guarantees issued or undertakings provided Payment might be in tems ofthe financial guaranteas ‘mentone in his document or undertakings In which cazepaymenis occur ect between the vious banks by Electonic Funds Transfer (€FT) I payments aro be made fo terme of undertakings von by Prosi favour of | vansacton crectors then Prox! makes those payments by EFT trom the cent rox performs inal accounting to alpares and makes payment of any sup funds othe owner there. ‘an example isi trator wth sinutaneous ‘cccupaton were delayed zed the purchaser contibuted rates from the origina! cxractuay stipulated wanler dae, | tren in_that case th© ]psrchaser would have contributed rates in excoss OF hat wos requred and woul be bed 2 refund, ‘rox sends closing sslements of account and ‘eters to he purchaser, saller and estate agency recording atrecipts payments made through the transaction ” 55 ‘Once the tile deed & received by Prox, ton dependent on whether the ew tle deed has 2 ‘morigage bond register over ito not, Prox! wi 1 alver the dood the mocgagee bank and et acknowledgement of receipt oF aver he deed tothe new owner and get acknowiedgemento receipt Pox wl make payment ofthe deeds regis foo 1 7 Prosi wil cose and archive is transler émiistation He 6IN THE HIGH COURT OF SOUTH AFRICA. (GAUTENG DIVISION, PRETORIA) CASE No: In the mater between: PROXI SMART SERVICES (PTY) LTD Applicant and THE LAW SOCIETY OF SOUTH AFRICA First Respondent THE CHIEF REGISTRAR OF DEEDS Second Respondent ROGER DIXON ‘Third Respondent THE MINISTER OF JUSTICE & CONSTITUTIONAL Fourth Respondent DEVELOPMENT THE ATTORNEYS FIDELITY FUND Fin Respondent FOUNDING AFFIDAVIT «the undersigned, GARETH EDWARD GRIFFITHS, C4do hereby make oath and say that 2 |'am a director and the Chief Executive Officer ofthe Applicant, | was admitted as an attorney on 3 October 1996 and as @ conveyancer on 14 ‘August 1997. | practised law from 1995, including as an artcied clerk and onveyancer, uni the end of 1999, | then let legal practice to study for an MBA at the Universiy of Cape Town. | was awarded the degree and then pursued a career in commerce, culminating in my appointment as Chief Executive ofthe Azplicant in 2015. | am duly authorised to bring this application on behalf of the Applicant. In Confirmation, | anrex a copy of the resolution of the board of directors ofthe ‘Applicant as Annexure "FAT" ‘The facts contained herein are within my personal knowledge, unless the contrary appears from the context, and are both true and correct. Where 1 ‘make legal submissions, | do so on the basis of advice provided by the Applicant's legal representatives. Where | rely on facts conveyed to me by third parties, | vetly believe the correctness of such facts. Appropriate supporting or confimatory affidavits wil be procured from those persons, and filed together with my afidavit. This affidavit is structured as follows: 5.1. First | describe the parties: GaG° 52. 53, 64, ‘Second, | set out the purpose of this application and the relief sought herein; Third, | provide a detailed description of the Applicant's proposed business model (‘the model’), including: how the tasks in the property transfer process are divided between administrative and other services, Or the one hand, and reserved work, on the other; which steps the Applicant intends to undertake; and why the Applicant considers the ‘model, besides being lawl and legitimate in all reszects, to be for the benefit of consumers and the public at large. ln this section, | also (i) deal with the regulatory framework in respect of the conveyancing industry in South Africa; (i) provide an overview of the steps involved in the property transier process from beginning to end; and (ji) provide an {analysis of the steps to be performed by the Applicant pursuant to the ‘model (the factual content of which | confirm). 1 also refer to the confirmatory affidavit of Mr Roger Dixon, which | understand will be fled herewith. Fourth, | deal withthe interaction between the Applicant and the First Respondent, the Law Society of South Africa (‘the LSA"), as well as, the interaction between the Applicant and other stakeholders in the industry; C41 5.5. Filth, | eddress the dlspute between the Applicant and the LSSA in ‘elation to the model (there being no dispute raised in this regard between the Applicant and any of the other Respondents). There is Dut one sispute in reiation to the mode! the LSSA contends thatthe ‘model involves the performance by the Applicant of work forming part of the process of transfer of ownership of immoveable property that is {eserved for attorneys or conveyancers (commonly referred to in the legal protession as ‘teserved work). The Applicant disagrees. tn tis ‘egard, and as | shall explain below, the model has been carefully and spectficaly designed so as to exclude any reserved work from the ambit of the services to be performed by the Applicant, This evelopment process has taken place carefuly and deliberately. in parkcular, | have consulted both attomeys and senior and junior counsel over an extended period. In this section, | explain why is that the model does not invoWe the performance of any ‘reserved work’ by the Applicant. In the Applicant's model, all ‘reserved work’ is to bz performedby attorneys and conveyancers, THE PAK TIES ‘The Applicant is PROXI SMART SERVICES (PTY) LTD, a private company uly incorporated in terms of the company laws of South Africa, with itsSS registered place of business at Ground Floor, Liesbeeck House, River Pat, Gloucester Road, Mowbray, Cape Town ‘The Applicant is a newly-established company which had intended to commence business operations by implementing the model with effect from 4 March 2016 (with a pilot operation commencing in Apri! 2016), thereby Providing services to consumers who require the performance of ‘administrative tasks (the “administrative services’) routinaly performed in Tegard to the transfer of immovable property (‘Property Transfer or Transfers’). ‘The mode! i a joint native ofthe Applicant's principal shareholders, namely BotterLife Group ("BetterLife") and ooba (Pty) Ltd Cooba’), which are both Wwelkestablshed participants in the property industry with 13 and 17 years’ years’ experience respectively in the mortgage originaton industy in Partculr. The principal shareholders each have a history of innovation inthe mortgage origination industy. For example, ooba pioneered the electronic ‘submission of a single electron application (sing a generic application form) 1 multple vanks, 8 development that had considerable benefits for consumers and which strengthened competion in the home loan lending environment. Both the Applicant's principal shareholders have considerable expertise in regard to process management and administration, Each of their businesses i G oF0 —s focusses on is ‘process engine’ to make the morioage origination process ‘mote efficient, both internally and in thei interactions with other industry Parlicioants such as banks and attomeys. The focus on customer service and Process has led to faster bond approvals and beter interest rate and credit ‘decisions for home buyers. Both companies have @ proven track record of increasing the likelihood of the home buyer obtaining bond approval It is the Applicant's view that investment into process and systems-ed innovaion in the existing property trenster process will result in increased ‘compeiton that will benefit the consumer. The Applicant's focus is, sty, on the performance of administrative services and steps, such as oblaining ceticates and documents from () regulatory bodies (such as Municipelties land SARS) and (i) other parties such as electrical, beetle and phurbing ‘experts, and, seconaly, on managing the interactions between the multiple Parties involved in any property transfer process. These functions are Considered by many (though not all) ltomeys tobe of @ purely administrative nature, and are therefore ordinary performed by conveyancing secretates, with some aspects being performed by bond erginators andlor este agents Of course, an attomey delegating these functions to his or her conveyancing secretary would remain accountable forthe work to be done, but tis doesnot detract from the fact that many attomeys do not perform these tasks themsehes, an CeO1. 12, 13, Ss In summary the Applicants business model derives from an analysis of the various steps involved inthe process of Property Transfers, and the allocation of those steps between the Applicant, on the one hand, and @ conveyancing attorney, on the other, That allocation is based on, and consistent with, the relevant statutery provisions requiting certain (but not al of the steps in the Process of Property Transfers to be performed by a conveyancer of an attomey. The model marks a departure from past and current prevaiing Practice under which all the steps are performed by a conveyancer, i. despite the fact that not al such steps are reserved by law for performance by a conveyancer ar attorney. ‘The mode! aims to achieve efciencis through investment into administrative systems and, potential, considerable economies of scale. This wil include ‘organising the end-to-end process that starts at the estale agency, moves through complance, administrative and financial stages, and which culminates in the performance of the reserved work by the conveyancer ‘appointed by the home seller for that purpose. Increased competition inthe market for conveyancing and related services (the resuit of opening up the non-reserved servivws Iu performance by service providers other than conveyancers), and a more efficient process, will lead to consumer benefits. ‘The Applicant's business process model does not seek to detract from the expert services offered by attomeys, Rather it seeks to elficenlly suppert as14, 8. <3S\ such services — with conveyancers continuing to take full responsibiy for the reserved work ~ thereby contributing tothe predictably and improvement of the transfer process. With the process administration — ie. noneserved work ~ performed by the Appicant (rather than by a conveyancing secretary Under the supervision of a conveyancer), the conveyancer is better placed to focus on the expert tasks that requie his or her attention. Conveyancers will 0 doubt agree that a disproportionate potion of their time in regard to any Property transfer ison administration and process management (non-ieserved \wotk) rather than on satisfying themselves in regard to reserved work, This comes at a cost to the consumer In shor, the Applicant was established with the intention to present an altemative and competitive service offering for consumers of ‘property lwansfer-related services, In this regard, the Applicant's analysis i that: 15:1. Increased choice for consumers will resul in increased competition in the market for conveyancing and related services, with the attendant consumer benefits including improved efficiency and accuracy, ‘convenience, innovation, lower costs and reduced registration times: 18.2. Consumer choice, market forces, and the nature of the model wil fensure that the Applicant's administrative services are both of the highest standard and compevely priced. The model operates to ues16, a7. SV benefit the consumer, since it will elease the grip that law firms curently have in respect of all conveyancing and related services ~ a Imenopely that extends to all components of the bundle of services Performed in the course of the property transfer proces, inespecive of whether oF not the service concerned constinules reserved work, Doing 30 will pen up the market for the services that are not reserved work {0 greater competition, and thereby benefit consumers. ‘As foreshadowed above, the Applicant, in identifying the administatve services and steps to be undertaken by it in regard to property transfers, sought specifically to exclude from such services the performance of any work that is, or may be considered to be, reserved to conveyancers oF legal Practitioners in terms of 16.1. the Altoreys Act 53 of 1979 the “Attorneys Act); 16.2. the Legal Practice Act 28 of 2014 (the ‘LPA); 16.3. the Deeds Regisvies Act 47 of 1937 (the ‘Deeds Registries Act"); and 16.4. any other applicable legislation or regulations, including the varous Rules for the Attomeys’ Profession as promuljated in terms of the Allorneys Act 53 of 1979 (the "Rules for the Profession’), ‘The Applicant isan authorised financial service provider (FSP) registered with the Financial Services Board. Its FSP registration number is 46472, hu ose19. 20 a eS Pursuant to its Category 1 Licence, the Applicant is authorised to hold client investment mandates, The Applicant accordingly falls under the regulatory authority of the Financial Services Board The First Respundent Is the LAW SOCIETY OF SOUTH AFRICA (defined above as the “LSSA", whose principal place of business is at 304 Brocks Street, Menlo Park, Pretoria. The LSSA is an association of the four statutory ‘aw societies of South Atica, namely the Cape Law Society, the KwaZuue Natal Law Society, the Law Society ofthe Free State, and the Law Society of the Northem Provinces (the “four Law Societies"), as well as the Black Lawyers Association and the National Association of Democratic Lawyers. ‘The Second Respondent is the Chief Registrar of Deeds, appointed in teams 0f s2(1)(a) of the Deods Registries Act. The principal place of business of the Second Respondent is at Rentmeester Building, Room 501, c/o Bosman and Pretorius Streets, Pretoria To the best of my knowledge, there is no dispute in relation to the model between the Applicant and the Second Respondent, the latter being cited herein by virtue o' her potential interest inthe order sought by the Applicant, ‘The Third Respondent is ROGER DIXON a practising attomey and admittee conveyancer, whese place of employment is at Dixons Attomeys 1st Floor, Ne 5 Riley Road, Bedfordview, aes23. 24, 28, Sy There is no dispute between the Applicant and the Third Respondent in felation to the model, On the contary, and as | explain below, the Third Respondent has in fact agreed to participate in the alot implementation ofthe ‘model. The Third Respondent is accordingly cited herein only by vitue of his interest in the order sought. am advised that a coniimatory affidavit deposed to by the Third Respondent wil be fled herewith The Fourth Respondent is the Minister of Justice and Constitstional Development, whose offices are at 329 Pretorius Street (clo Pretorius and Sisulu Streets), Pretoria, To the best of my knowledge, there is no dispute in relation to the mode! between the Applicant and the Fourth Respondert, the latter being cited herein by vidue of his potential interest in the order sought by the Applicant ‘The Fifth Respondent isthe Attorneys Fidelity Func (the Attomeys Fidelity Fund’), a statutory body established and regulated by the provisions of the Atlomeys Act, and whose offices are at 5" Floor, Wealburg Building, 28 Wale Street, Cape Town. The Applicant seeks no rele against the Fifth Respondent and is advised thatthe Fitth Respondent does not have a direct ‘and substantial interest in the outcome of this application. Nonetheless, the ‘Applicant has joined the Fund ex abundante cautela given the circumstances set out in paragraphs 68 to 78 ofthis affidavit ehoy RS PURPOSE OF THIS APPLICATION AND THE RELIEF SOUGHT 26. 27, ‘The purpose of this application isto resolve the aispute between the Applicant ‘and the LSA, as cutined in paragraph 6.5 above, by way of the declaratory relief set out in the Notice of Motion. | summary, the dispute between the Applicant and the LSSA came about as. follows: 27.4, On 1 March 2016 the Applicant gave notice to the LSSA and the four Law Societies ofits intention to estabish a business that performs the (onceserved) administrative services in regard to property transfers (the ‘Notification to the Law Societies") (a copy of which Is attached 8 °FA2'), The administaive services were fully detailed in Schedule 1 to the Notification to the Law Societies as was the model, the Principal feature of which is thatthe seller of a residential immovable Property appoints, in terms of two separate mandate agreements (the “Seller's Dual Mandato”) 27.1.1. the Applicant to provide the (non-eserved) administrative services in regard to a property transfer, and 27.4.2 the Third Respondent (or any other practising attorney and ‘conveyancer who is willing to accept such mandate, i being the Applicant's intention to be associated with a panel of xa ef G3 Se attorneys) to perform the legal services that the Applicant accepts may only be performed by a practising attorney ‘andlor conveyancer (the “agreed reserved work’). The agreed reserved work was similarly fully detailed in Schedule 4 tothe Notification to the Law Sociates. It should be noted that, in the Applicant's view, not all tasks included in the agreed reserved work are necessary defined as such in terms of the relevant legislative framework, but these are Nonetheless tasks that the Applicant does not seek to Perform pursuant to the model, for practical, efficiency. related and commercial reasons. 27.2. In ts witten response dated 2 June 2016 (a copy of which is attached 8 "FAS"), the LSSA noted the Applicant that the Council of the Lssa: “is of the view that the full conveyancing process is reserved work and should remain so, in the interest of the publi” 27.3. Accordingly, so the Applicant was informed: “the Council cannot suppor the proposed business moder, 28. ‘Theefect ofthe LSSA\e stance is to4 Sl 28.1. Create a dispute between the Applicant and the LSSA in regard to ‘whether or not the administrative services when undertaken as part of the property transfer process constitute ~ in part or in whole — work reserved for practising attorneys or conveyancers, ie. reserved work: 28.2. Prevent the Applicant from commencing business pursuant to the model. This is so because: 2821. A property transfer cannot be effected through the performance of the administrative services only. Any Property transfer requires at a minimum for its completion, and the passing of registration of tive from seller to buyer, the performance by a practising attomey and conveyancer of the agreed reserved work; and 282.2. The LSSA and certain of the four Law Societies cautioned ther members and, in the case of the Law Society of the Norther Provinces, stated its inlet to caution the Third Respondent himself, that they may be subject to disciplinary ‘sanction should they participate in the model 28.3. The relevant communications of the Law Society of the Northem Provinces. the Cape Law Society and the Free State Law Society (Le in which these law societies threatened their members with disciptinary cs GG8 DS ssnction should they participate in the model) are more fully detailed in Peragraphs 49 and $7 below. 29. The stance adopted by the LSSA places a further obstacle in the path of the ‘model in that, given the dispute created by the LSA, the Applicant's potential banking product providers, Invastar: Rank and Standard Bank, have advised that they cannot offer ine banking produets concemed to the Applicant unt the dispute with the lew societies is resolved. This is more fully detaied below. This adds to the impossibly ofthe Applicant commencing to operate the model as designed, since a key element of the overall process- ‘ptimisation requires the opening of client bank accounts at one of the Applicants potential banking partners, 30. In the circumstances, the Applicant has had no option but to approach the ‘court for declaratory reli ‘THE MODEL 31. As I have stated, the Applicant is a newiy-established company which intended to commence business operations with effect from 1 March 2016, (wth a pilot operation commencing in April 2016), providing the administrative services, ie. the administrative services that are routinely performed in the ‘course of property transfers and tha fall use the ambit of recenved work, em6 SA 32. _ have prepared a schedule setting out each ofthe steps involed ina typical Property ransler ofa single property between two individuals. The schedule includes both reserved work, on the one hand, and tasks which Prox! intends {0 perform (Le, non-reserved work), onthe other. The schedule is attached as annexure *FAAA’, with the steps therein that are to be performed by the conveyancing attorney (as opposed to the Applicant) highlighted in yellow. 1 Fefer tothe confirmatory affidavit of Mr Dixon, a conveyancer of more than 22 years’ experiance, who confims thatthe process depicted in the schedule fs an accurate reflection of each of the steps involved ina typical conveyancing process from beginning to end. 33. Annexure FAA also illustrates the interaction between the conveyancing attorney, the Applicant, the seller, the purchaser and other parties involved in the conveyancing process, 34. Under the Applicant's proposed mode! 94.1. A dual mandate (referred to above as the “seller's dual mandate willbe given by the seller (should he or she elect to do s0) pursuant to which: 34.1.1. The Applicant wil be appointed by the seller to perfoim the ‘administrative services (he “administration services appointment’); and ee u*35, ” ho 34.1.2, The seller will, separately, select a practising attorney ard conveyancer of choice to perform the agreed reserved work (the “legal services instruction’) 34.2, The FSB's regulation of the Applicant ensures financial regulation for ‘consumer protection against loss of funds, 34.3. The four Law Societies continue to regulate the professional conduct ‘and qualiy of the work of the conveyancers performing the reserved ‘and the conveyancer continues to take professional responsibilty for the correctness ofthe facts contained in @ deed or other document Prepared forthe purposes of registration or fling in a deeds registry ‘As indicated, the Applicant will nt undertake or perform any reserved work ia ‘egard tothe property transfers. More particularly, the Applicant will not 35.1. draw up or prepare or cause to be diawn up oF prepared “any agreement, deed or wring relating to immovable property or to any ‘ight in orto immovable property’, as envisaged in $83(8)(a)) of the Attomeys Act, 35.2. prepare any “deed of transfer, mortgage bond or certiicate of ttle or any certificate of registration of whatever nature”, as envisaged in 815 of the Deeds Registries Act.37. 39, 8 Ll (tn what follows, | shal refer to the documents referred to in $83(8)(a)() of the Attorneys Act and in s16 of the Deeds Registries Act collectively as the ‘proscribed documents" ) Nor will the Applicant “perform any act or render any service which in terms of ‘any other lew may only be done by an advocate, attomey, sonveyancer or ‘notary, unless that person is an advocate, attomey, conveyaacer or notary”, as envisaged in £33(3) of the LPA. ‘Ae required by 815 of the Deeds Registries Act and by section 83(8)a)\) of the Attorneys Act, the prescribed documents wil continue to be “prepared by 2 conveyancer" andr a ‘practising practioner respectively. | am therefore advised that the Registrar of Deeds will therefore not be secluded from “attesting, executing or registering” any of the prescribed documents, Moreover under the model, the practising attomey and conveyances who accepts the legal services instruction wil continue to incur professional ‘esponsiily for the prescribed documents prepared by him or her, and wil be requied to adhere tothe provision of sections 15 and 15A of the Deeds Registries Act The Applicant and the attorneys on the Applicant's panel wil operate in Parallel in catrying out their respective tasks on & custom bult, pattioned Conveyancing software platform. The Applicant will perform its data collection function as a part of its wider administration task in the area of the software mA q c&40 19 lm platform accessible to it. The Applicant will capture data relating to buyer, seller and property into the software capture felds. The captured data wil be stored in a database unil needed by the panel atforey when preparing reserved work documents, The software platform difes from conventional conveyancing software in that the sofware contains @ coded software Parton which prevents the Applicant from being able to access the reserved work document templates or using the captured data to prepare reserved work documents. Only the panel attomey can access the reserved work transfer document templates and populate them using the data captured by the Applicant, should they s0 choose. The platform wil contain a fil audit trail ‘of who performed what task so that there will be no doubt thatthe Applicant Performed only administration work. Should the altomey find dala capture errors in the data captured by the Applicant whist preparing the reserved Work documents, the panel attorney will have access to the dala base to correct any data capture errors before the data is used to populate the reserved work document templates selected by the panel altomey for a particular transfer, Accordingly, consumers will continue to have the ful benefit of their transactions being subject to scrutiny by a practising attomey and conveyancer appointed by him or her, the professional conduct of such attorney and conveyancer in turn being governed in the ordinary way by the provisions of the Deeds Registries Act, the Attomeys Act, the LPA, the Rulesa, 42, 2 Ws for the Attomeys' Profession, and subject to the jurisdiction and control of the SSA and the four Law Societies, ‘AS noled above, the administrative services tobe performed by the Applicant in regard to property transfers were detailed in Schedule 1 to the Notiicaton {© the Law Societies. For convenience, the administration services are ‘ecorded in annexure “FAAE, being a schedule that delais only the ‘administrative services, in a transfer process where i is assumed that a freehold property is sold between two naturel persons by private treaty, This ‘document is a slightly amended version of Schedule 1 to the Notieation to the Low Societies (1FA2), (Annexure “FAAB! is the same as Schedule A to the Notice of Motion.) ‘The Applicant is advised and contends that none of the administrative Services includes the drawing up of any prescribed document, which is reserved’ to @ conveyancer under s16 of the Deeds Registries Act or 883(6Xa)() of the Attomeys Act, being (as already indicated) 42.1.1, a “deed of transfer, mortgage bond, or certificate of tite or ‘any cortiicate of registration of whatever nature’, ie. as ‘ferred to in 815 of the Deeds Registries Act, or 424.2, “any agreement, deed or wilting relating to immovable ‘property or fo any right in or to immovable property’ as ‘ferred to in $85(8)(a)) of the Altomeys Act. mM oea Lake 43. Seltevidenty the Applicant wil in no way hold itself out as a conveyancer oF legal practioner. The Applicant will st ll times clearly distinguish the ‘administrative services that it provides, 2n the one hand, from the agreed ‘reserved work performed by conveyancers in regard to property transfers, on the other. Indeed, under the model the Aaplicant cannot and wil not perform the administrative services for a consumer who has not separately given a legal services instruction to a practising attomey and conveyances for the Performance of the agreed reserved work 44. Again, and seltevidently, the Applicant wil not prepare any certiteates that are required by section 15A of the Deeds Registries Act to be prepared by a conveyancer (the ‘prescribed certificates’). Consequently the conveyancer will a5 | heve explained, continue to accept fll professional esponsibitty for the reserved work aspects of the properly transfer. The prescribed Cetticates are defined in section 15A of the Deeds Registries Act, and are ‘commonly known as “prep certificates". By signing the “prep certificate’, the conveyancer who prepares a prescribed document (Le. @ deed or other document for the purpases of registation or fling in the deeds registry), ‘cepts responsibilty (as contemplated by the Deeds Registries Act) forthe accuracy ofthe facts mentioned in such deed or document. 45, In summary:46, 45.1. The adminitratve services to be provided by the Applicant do not Include the drawing of any prescrived document or the preparation of any prescribed certificate; 45.2. A conveyancer, pursuant to the legal services instruction from the seller, will use professional judgement in selecting the appropriate transfer documents and will draw and prepare the prescribed documents and the prescribed certificates 45.3, The coweyancer that then signs the preseribed certificate wil accept responsbiity for the property transfer as provided for in terms of the Deeds Registias Act It foliows thatthe Applicant will not perform any reserved work pursuant tothe ‘administration services appointment ENGAGEMENT WITH THE FIRST RESPONDENT AND THE FOUR LAW SOCIETIES AND OTHER STAKEHOLDERS Engagement with the LSSA and the four Law Societies 47. ‘The Applicant sought to commence ite business with the sanctin of the ‘custos morum of the profession, viz. the LSSA and the four Law Societies. ‘Accordingly, the Applicant addressed the Notification to the LSSA and the four Law Societies on 1 March 2016 (annexure “FA2’). kA Pa ‘The Noificaion to the Law Societies explained the model in some detail ‘Additionally, the Applicant advised that the purpose of the Notification to the Law Societies was to notily the LSSA and the four Law Societies that: 48.1. The Applicant intended to commence its business operations including the administration services with effect from 7 April 2018; and 48.2. The Third Respondent intended, with effect from 7 April 2016, to accept legal services instructions (pro forma copies of which were attached as annexures A and 8 of Schedule 3 tothe Notification to the Law Socitios) from consumers who had separately appointed the ‘Applicant in terms of an administration services appointment, 48.3, The decision to inate the business operations of the Applicant as a pilot project in conjunction with = single attomey (the Third Respondent) was made for a number of commercial and pragmatic reasons, including enabling the practical implementation of the model to be monitored by the four Law Societies (in which regard the Applicant's co-operation was tendered); 48.4. In future, and once the Applicant's business operations proceeded to the next phase, it was the Applicant's intention to engage with attomeys fms more broadly and to conclude agreements (the ‘parallel mandate management agreements’) with more than one aM Q26 LA firm of attomeys regulating the interaction between the Applicant and those attorneys in regard to the execution of seller's dual mandates; 48.5. In future, the Applicant would either negotiate those parallel mandate ‘management agreements with each firm of attomeys individually or femploy @ tender process to establish a panel of attorneys that were: willing to participate in the model, 48.6. The Third Respondent had indicated his willingness to take on the pilot ‘operation on the basis that he was salisfes by: 48.8.1. the process of consulting senicr and junior counsel (ntaly Advecate Owen Rogers SC and, since his elevation, Advocates Jeremy Gauntlett SC and Matthew Blumberg) lover a period of several years; and 48.8.2. the engagement by Applicant with the LSSA and the four Law Societies, including the Noiifcation to the Law Societies prior to the commencement of any business operations. 49, In response, the Applicant iiialy received two replies, from: 49.1. The Law Society of the Northern Provinces dated 31 March 2016 (attached as annexure "FAS") stating as follows:492. 49414 49.4.2. Ls “(he Counc of the Law Society c the Nonhem Provinces has duly considered (the Applicants) submission... it wes resolved thatthe proposed scheme cannot be approved by the Lew Society and thet the mater also be refered to the [LSSA] for consideration’: and “It was also agreed that [the Third Respondent] be cautioned {hat his involvement and engagement in the scheme proposed by [the Applicant} may woll result in contravention of a number of rules ofthe Law Society and the provisions of the Attomeys Act, 19797, ‘The LSSA, in correspondence dated § April 2016 (attached as ‘annexure "FA6") informed the Applicant that 49.2.1 49.22. “The [LSSA] has considered your leter dated 1 March 2016. The [LSSA’s] preliminary view is that the proposed scheme ‘cannot be supported’; “itis of grave concem to LSA] thatthe scheme wil pose & ‘nancial risk to the public, wil breach a number of rules of the attomeys' profession and the Atomeys Act, 1979 and Jimpinge on the fiduciary duties of ettomeys” kA Q a&50, 51 28 LS 49.3. The LSSA further requested an “urgent meeting at high level to ciscuss the way forward, faling which [the LSSA] shail have no option otter ‘han (0 initiate ftigation to protect the publi’ In response to the LSSA's letter dated § April2016, the Applicant replied in a letter dated 18 Apri 2016 (attached as annexure “FAT stating that 50.1. The Applicant would be grateful for the opportuity to meet with the LSSA “on an urgent basis” (ie. as the LSSA had proposed) in order to allay the LSSA's concems; 50.2. The Applicant had received the Law Society ofthe Northern Province's leter dated 31 March 2018 and was replying thereto (a copy of which reply dated 22 Apil 2016 is attached as annexure “FAB") and requested confirmation that its understanding was correct that, given the Rules ofthe Profession which were now in force, the LSSA would “have @ mandete to represent the protession in its engagement with [the Applicant). ‘The Applicant and the LSSA then scheduled @ meeting in Johannesburg, Which was held on Tuesday 17 May 2016 (the “LSSA Meeting’). The Applicant was represented atthe meeting by mysel, Me Alan Rubin (a director of the Applicant), Mr Johan Vermeulen (also a diector ofthe Applicant) and its attomey, Mr George van Nickerk of ENSafrica. At the LSSA Meeting, 252 So representatives of the LSSA raised various concerns with the model, and the Applicant's representatives were afforded an opportunity ta eespond) Following the LSSA Meeting, and in order to address certain of the conceins ‘aised at the meeting, the Applicant's atlomeys addressed a letter to the LSSA dated 23 May 2016 (attached as annexure “FAS"). In that letter, the Applicant's ettomeys: 52.1. confined that the Applicant would continue to engage with the LSSA. ‘exclusively “inasmuch as [the First Respondent] had been mandated to eal with this matter on behalf of the organized profession, particulary, ‘the four constituent statutory law societies’ 52.2, addressed four key concems that had been raised by the First Respondent at the LSSA Meeting. The four key concems related to 52.2.1. the roles and responsibilities of the conveyancer: 52.2.2 the separation of the reserved work from the administrative work; 52.2.3, the perceived “nancial risk” to the public: 22.4, “Substance over form’ (lo use the LSSA’s expression).