FACT BOX: PROPERTY DEEDS REGISTRATION BOTTLENECK
WITH the Deeds Offices reopening on Monday, the real estate industry has heaved a sigh of relief.
Cities around the country, many of which were able to issue clearance certificates online, had stopped doing so, as they are only valid for 60 days, and at this stage it is not clear when this sector will be allowed to operate again.
The jobs of over 50 000 people in the property sector are affected.
Said Tholo Makhaola, president of the South African Institute of Black Property Practitioners: “Many agents are working remotely and trying to continue with business as far as possible, but could not now conclude property sales with the Deeds Offices closed.
MEC Tertius Simmers said he had asked for clarity from the national government, which had not responded to the industry letter. “I’ve written to Human Settlements, Water and Sanitation Minister Lindiwe Sisulu to seek clarity about whether human
“It can now take months for registrations to be finalised. And these estate agents will not be eligible for UIF payouts,” said Makhaola.
The closure of the Deeds Offices also left buyers and sellers in the process of concluding a sale of property high and dry, placing financial distress on sellers who were in desperate need of the sale proceeds.
For most people, the purchase or sale of a property will be one of the most significant transactions of their lives, and in the current market many sellers have sold their most valuable asset out of necessity.
Andrew Golding, chief executive of the Pam Golding Property Group,
settlements’ construction projects are covered by the Levels 5 and 4 of the listed services (in lockdown), as we are of the view that they should be.
“The clarity is crucial to ensure we are all on the same page,” he said.
In the draft framework, which says the property sector, together with finance and business services, were the second biggest contributors to overall GDP growth in 2019.
“The freezing of the industry means the government is precluded from receiving much-needed revenue into its coffers from transfer duty – a significant contributor to the SA Revenue Service (Sars) – payable from transactions already being processed,” he said.
In a typical month in South Africa, between 10 000 and 12 000 property transactions are concluded.
It’s a process that affects various parties and sectors, including banks, bond originators, estate agents and attorneys, among others. |
details the staggered lifting of lockdown restrictions, the construction and related services, “civil engineering for public works projects (including water, energy and sanitation) and critical public works construction” are included under Level 5; and then
“other public works civil engineering projects” were added under Level 4.
“There’s an urgent need to re-commence construction as it will enable us at the very least to assist the most vulnerable, which is the elderly, disabled and backyard dwellers,” he said.
“Notwithstanding the lockdown regulations and our collective effort to ensure we stop the spread of Covid-19, while also taking the social, health and economic impacts into consideration, we’ve proposed the following:
The consideration of the re-activation of certain construction sites during the lockdown, which include greenfields sites and portions of construction sites, which have not yet been occupied. Allowing low-density construction sites to operate, where physical distancing and other public health practices can be enforced.
“The return of human settlements’ construction is crucial if we are to swiftly, as part of our Rapid Informal Settlement Support and Upgrade Programme, complete the erection of our transitional residential units in the permanent residential areas,” he said.