Consumer Studies Grade 12 | Study guide | Past Paper Revision | Housing and Interior 1

Question

State who manages sectional-title properties.

The management of sectional-title properties is handled by the body corporate.
The body corporate is made up of all the owners of units within a sectional-title complex. This group is responsible for overseeing the maintenance of shared or common areas, collecting levies from unit owners, enforcing rules, and making decisions that affect the property. They ensure the smooth day-to-day running of the property and protect the interests of all owners.

Question

Explain the term lease.

A lease is a contract or agreement that exists between a property owner, also known as the landlord or lessor, and a person who rents the property, known as the tenant or lessee.
This agreement gives the tenant the legal right to occupy and use the property for a specific duration, often in exchange for regular rent payments. The lease outlines important terms such as the amount of rent, duration of stay, responsibilities for maintenance, and conditions under which the lease may be terminated or renewed. It protects the rights of both parties involved.

Question

Name TWO types of insurance that homeowners should have.

One important type of insurance for homeowners is Homeowner’s (Comprehensive) Insurance.
This policy covers the physical structure of the house against damage or loss due to events such as fires, floods, storms, or natural disasters. It ensures that the homeowner can repair or rebuild their house without bearing the full financial burden of unexpected damage.

Another essential insurance is Household (Contents) Insurance.
This type of insurance protects the items inside the home, such as furniture, appliances, electronics, and personal belongings. If these items are stolen, damaged, or destroyed due to burglary, fire, or accidental incidents, the policyholder can be compensated or the items replaced.

A third important option is Life Insurance / Mortgage / Bond Protection Insurance.
This policy is especially critical for homeowners with home loans. In the event of the homeowner’s death, it helps to settle the outstanding mortgage, preventing the risk of the home being repossessed and ensuring the family’s security.

Question

Explain the financial disadvantages of building a house.

One major financial disadvantage of building a house is that there could be delays, which will lead to additional building costs. Delays can happen due to bad weather, shortages of materials, labour issues, or problems with permits. Each day of delay may increase labour and equipment rental costs, ultimately making the entire building project more expensive than originally planned.

Another issue is unexpected costs, such as the preparation of the site. Site preparation may include clearing trees, levelling the ground, and installing basic infrastructure like plumbing and drainage. These are often unforeseen expenses that are not part of the original quotation and can significantly raise the total building cost.

There are also additional or added costs after construction like landscaping or starting a garden.
Once the main structure is completed, homeowners usually want to improve the exterior environment, which involves extra spending on grass, trees, fences, or driveways. These improvements, while not essential to the structure, add to the financial burden after construction.

A further disadvantage is paying municipal rates and taxes before occupation. In many areas, once construction begins or utilities are connected, homeowners are expected to pay municipal charges even if the house is not yet habitable. This adds financial pressure during a period when the homeowner may already be stretched thin.

Building a house can cost more than buying a house because of the cost of building materials and land. The prices of bricks, cement, roofing, and fixtures often fluctuate and may increase during the building period. In addition, purchasing a piece of land in a good location may come at a high price, especially in urban areas, making the total cost of building exceed that of buying an existing home.

It is also important to consider that there is always a risk of faulty construction and design, which could cost more money. Mistakes in the design or poor workmanship during construction can result in serious defects such as leaking roofs, cracked walls, or poor drainage. These faults often require costly repairs or rebuilding, adding to the homeowner’s financial burden.

Lastly, the builder or homeowner can run out of money and may not be able to complete the house and therefore the incomplete house will have no value. Running out of funds midway through the project can lead to an unfinished structure. Not only is this emotionally and financially devastating, but the incomplete building often deteriorates over time and cannot be used or sold, making it a worthless asset.

Question

State the financial information that must be included in the sales agreement when buying a full-title property.

One of the most important pieces of financial information that must appear in the sales agreement is the correct purchase price. This amount confirms the agreed price between the seller and the buyer and eliminates the risk of misunderstandings about how much must be paid. A clearly stated and accurate purchase price ensures both parties are legally bound to the same financial expectation from the start.

The agreement must also record any suspensive (granting of the bond) conditions to a sale.
For example, if a sale is subject to a condition that the purchaser obtains a loan to finance the transaction, then this must be written in the contract. Furthermore, there must be a stipulation that the transaction is subject to bond being obtained within a set period.3 If this condition is not met, then the sale will lapse, preventing the buyer from being forced into a deal without the financial means to proceed.

It is also essential that the contract includes the concept of occupational interest. This applies should the transfer not be completed by the date of occupation. In such cases, the buyer, though not yet the legal owner, may occupy the house and will be required to pay the seller a form of rent—usually calculated monthly—until full ownership is transferred.

Another crucial clause is the stipulation that the seller is responsible for the estate agent’s commission. This must be clearly recorded in the sales agreement so that the buyer does not mistakenly assume responsibility for these fees. Since estate agents typically work on commission, clarity on this point prevents future disputes.

The sales agreement should also reflect that the seller is responsible for the electrical clearance certificate. This certificate is a legal requirement and ensures that the property’s electrical systems are safe and up to code. Including this condition in the contract places the responsibility on the seller to secure and pay for the certification before final transfer.

It should also be stated that the seller is responsible for paying for fumigation of borer or termites.7
This is vital in ensuring that the property is pest-free and structurally sound before ownership changes hands. Pest infestations such as termites can cause extensive damage, and the buyer should not be burdened with these additional repairs after purchase.

Additionally, the agreement must contain a stipulation that the buyer is responsible for all other expenses, such as repainting and other non-essential or aesthetic improvements. This clause fairly divides post-sale responsibilities and ensures that the seller is not expected to cover cosmetic updates or routine maintenance after handing over the property.

There must also be a clause that stipulates penalties in the event that either of the parties breaks the contract. This legal provision protects both the buyer and the seller, setting out the financial consequences of failing to meet contractual obligations, such as withdrawing from the sale without cause or missing critical deadlines.

Finally, most sales agreements usually include a voetstoots (“as is”) clause, which means the seller cannot be held liable for latent (hidden) defects in the property of which he or she was unaware. This clause protects the seller from future liability while encouraging the buyer to conduct thorough inspections before signing the agreement.

Study the information on the microwave oven below and answer the questions that follow.

Question

Identify the type of credit transaction indicated above.

The type of credit transaction described in the scenario is an instalment sale transaction, also commonly referred to as a hire purchase agreement. This is because the microwave oven is being sold with a cash price of R3 999, but the buyer has the option to pay a deposit of R200 and then continue paying R162 per month over 36 months. In such agreements, the buyer takes possession of the item immediately but only becomes the legal owner once the full amount has been paid. This type of transaction allows consumers to acquire goods they may not be able to afford upfront by spreading the cost over time with interest included.

Question

Describe how the functions of the microwave oven above will benefit a consumer.

The 20 litre capacity of the microwave oven makes it big enough to cook larger meals. This is particularly beneficial for families or individuals who prepare bulk meals, as it allows for the cooking or reheating of bigger portions without needing to divide the food into smaller batches. It supports efficient meal preparation, especially during busy schedules.

The function to defrost by time or weight is highly practical as it accurately calculates the time and temperatures necessary for defrosting. This helps ensure that frozen foods are thawed evenly and safely without starting to cook on the outside. It eliminates the guesswork and speeds up meal preparation, while preventing food waste due to over-thawing.

The quick start and kitchen timer functions are time-saving features that enhance convenience. The quick start allows the user to begin heating with a single press, while the timer function ensures the microwave switches off automatically when time is up, which saves electricity and prevents food from overcooking or burning. This is particularly helpful for multitasking in the kitchen.

The elegant mirror finish and grey interior do more than provide a stylish appearance. These surfaces are designed to be smooth and easy to clean, which supports hygiene and reduces the time and effort required for maintenance. Spills and splatters can be wiped off easily, helping the user maintain a clean and presentable kitchen.

The user-friendly control panel enhances the microwave’s ease of use. Clear buttons and straightforward functionality allow users of all ages and abilities to operate the microwave confidently. It reduces the risk of incorrect settings and makes the appliance accessible even to those unfamiliar with technology.

A push-button door offers a simple and convenient method for opening the microwave. This is particularly useful when your hands are full or if you have reduced hand strength, as it requires minimal effort compared to a pull handle. It contributes to the overall ease of use and user comfort.

The digital LED display with clock improves visibility and control over the cooking process. It allows the user to easily see how much cooking time remains, or what time it is, even from a distance. This helps with time management in the kitchen and supports precise meal preparation.

Finally, the microwave’s 10 power levels provide the flexibility needed to cook a variety of dishes. From gently melting chocolate to cooking a full meal, the different settings allow the user to adjust the microwave to suit specific food types and textures. This enhances the appliance’s versatility and supports more creative and accurate cooking.

Question

Analyse the positive impact of recycling E-waste on sustaining the natural environment.

Mining Reduction Supports Environmental Balance

The need to mine new raw materials is reduced, increasing sustainability and lessens the impact on the natural environment.

Recycling E-waste reduces the demand to mine new raw materials such as gold, copper, and rare earth elements found in electronic devices. This is significant because mining operations often destroy ecosystems, cause deforestation, and result in high energy consumption. By decreasing the need to extract these materials, recycling promotes sustainability and lessens the impact on the natural environment. For instance, recovering usable metals from old laptops avoids the environmental harm caused by gold or copper mining, preserving habitats and conserving energy. This approach helps strike a balance between human progress and nature conservation.

Reusing Saves Energy and Cuts Carbon Emissions

Less electricity/ non-human energy will be needed to produce new products as discarded electrical household appliances are being recycled/ reused/ resold for parts. This results in a lower carbon footprint/ greenhouse effect.

Recycling and reusing parts from discarded electrical household appliances reduces the energy required to manufacture new products. Since it takes much more electricity and industrial energy to extract and process raw materials, using already-existing components is more energy-efficient. This process lowers the overall carbon footprint by decreasing the amount of greenhouse gases released into the atmosphere. For example, reusing the circuit boards from old televisions reduces the need to produce new ones, thereby conserving electricity and helping to slow down the greenhouse effect. The reduced energy demand directly supports efforts to combat climate change.

Less Landfill Waste Means Less Environmental Pollution

It may create less waste on landfills, thus less pollution.

Recycling E-waste helps reduce the volume of discarded electronic items dumped in landfills. These devices often contain plastics, metals, and other materials that do not easily decompose, taking up space and contributing to environmental pollution. When electronics are recycled instead of thrown away, landfill space is preserved, and pollution from these waste sites is minimized. For instance, recycling an old printer instead of discarding it prevents its parts from adding to landfill clutter and leaking pollutants into the soil. This practice supports cleaner communities and healthier surroundings.

Preventing Toxic Leaks into Nature

It reduces soil/ water/ air pollution as E-waste may contain hazardous/ toxic waste.

Many electronic products contain hazardous and toxic waste such as mercury, lead, and cadmium, which can contaminate soil, water, and air if not properly handled. Recycling E-waste ensures that these dangerous substances are safely extracted and processed, preventing them from leaking into natural ecosystems. For example, the lead in old computer monitors can pollute groundwater if dumped in a landfill. By recycling such items responsibly, we reduce the risk of toxic exposure to the environment, safeguarding human health and protecting biodiversity from harmful contamination.

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Consumer Studies Grade 12 | Study guide | Past Paper Revision | Clothing 2