Daan's Snippets

News:

Hard news

Conveyancing and property

  • Conveyancers would have noted that the powers-that-be have pressed on substantially with eDRS and, despite any qualms regarding the functioning of that system, appears intent on launching electronic lodgement shortly. At the same time, a Land Rights Registration Bill has been circulated for comment. The stated purpose of the bill is to “provide for the transformation of the deeds registration system or procedures and to repeal the deeds registries act as well as the implementation of EDRS”. See: www.lssa.org.za/wp-content/uploads/2026/02/CHAPTERS-1-TO-5-LRR-BILL.pdf
  • Buying for cash is best? The difficulty with such a property purchase, is that the purchaser ties up a large portion of cash and limits his financial flexibility. (Drawn off a long-winded Property 24 article)
  • Developers and those seeking subdivision of ostensibly agricultural land may find benefit from this article: https://www.cliffedekkerhofmeyr.com/en/news/publications/2026/South-Africa/Agriculture-Aquaculture-Fishing/Agriculture-aquaculture-and-fishing-alert-11-February-Lessons-on-subdivision-SALA-and-food-security-from-the-Tridevco-judgment
  • An article in challenging the CSOS authority over homeowners’ associations may be found at:  https://businesstech.co.za/news/property/850164/levy-warning-for-owners-in-complexes-and-estates-in-south-africa/
  • Whilst on the topic of CSOS, an article on the choice of forum in CSOS disputes is worth a look: www.cliffedekkerhofmeyr.com/export/sites/cdh/news/publications/2026/South-Africa/Real-Estate-Law-Conveyancing/Downloads/Real-Estate-Law-Conveyancing-Alert-10-February-2026.pdf
  • A long-standing debate, surrounding rural homes and the security that they offer for borrowing, has resurfaced. The fact is that if such owners could borrow against their cash-built properties, it would increase their financial leverage immeasurably. If politicians were able, in some way or another, to unlock such access, it would release trillions of rand into our economy.
  • The Conventional Penalties Act limits the impact of contractual penalties and disrupts the strict interpretation of the pacta sunt servanda principle: https://stbb.co.za/all-about-property-when-deadlines-matter-deposit-forfeiture-and-the-conventional-penalties-act/
  • Transfer duty payments and how these are captured have changed – specifically dealing with the income tax number of the parties involved – worth a look for conveyancers: https://stbb.co.za/all-about-property-sars-enhances-transfer-duty-requirements-implications-for-property-transactions/
  • Rigid Body Corporate rules, disregarding the needs of visually impaired persons, are unfair and may be struck down on application: https://www.saflii.org/za/cases/ZASCA/2026/16.html
  • Who is liable if a conveyancer pays a developer who becomes insolvent, if such payment is not fully within the limits imposed by the Housing Development Schemes for Retired Persons Act? https://www.saflii.org/za/cases/ZACC/2026/6.html
  • To my knowledge, there has been no news on the Johannesburg High Court class action, in which dispossessed homeowners take on our banks over homes that were allegedly sold at below market value.
  • Dysfunction:
    • The ‘outage’ of Johannesburg’s billing platform has affected some 1.5 million municipal accounts. This has caused transfers of the affected properties to grind to a halt, as rates certificates cannot be obtained.
    • The Pietermaritzburg deeds office had, at the time of writing, been laid lame by a six-day water ‘outage’, ostensibly caused by labour dissatisfaction in the Msunduzi municipality. The fact is that our municipality has, like most other municipalities, shelved upkeep of infrastructure in favour of (one hesitates to say this) upliftment of their own. The financial impact of such a hiatus cannot be understated; aside from hundreds of millions of rand not being released into the economy, there is the cost of replacing advertisements, rates certificates and the like. And, last, but not least, if a conveyancing practice loses six out of twenty work-days, it will show no profit for that month. (PS, on Monday 23 February, the deeds office again was without water)
    • Economist Roelof Botha says that home price increases have not kept up with our construction input price rises. Generally speaking, one cannot build a house for the price that one purchases a similar house second-hand.
  • CRC 3/2025, dealing with the determination of the value of a lease for registration fees, has suspended RRCR 4/2025. The difficulty, highlighted by West, is that it is not always possible to accurately determine the rental value of a lease. The above CRC provides that where a lease agreement does not disclose the total consideration of the lease, a notarial certificate may be accepted in which the total lease consideration is disclosed. Not much of a solution: ask me for a copy.

Lighten Up

Cash or credit:

“They say money talks, but mine just waves goodbye”.

Acquaintance, n.: A person whom we know well enough to borrow from, but not well enough to lend to.  Bierce

People are living longer than ever before, a phenomenon undoubtedly made necessary by the 30-year mortgage. Larson

Contributed by:
Daan Steenkamp Attorneys
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