“With a staggering R5,3 billion of property registrations going through Deeds Registry offices across South Africa each month, the need to declare the Deeds Registry process as an essential service in the future to prevent the massive costly disruptions to the property sector is painfully clear,” says CEO of SAPOA Neil Gopal. Gopal will be petitioning the Chief Registrar in this regard.

There are nine Deeds Registries in South Africa situated in Pretoria, Cape Town, Jo’burg, Pietermaritzburg, Bloemfontein, Kimberley and King Williamstown, which have been affected to different extents as a result of the current national strike action, with Cape Town being amongst the worst effected.

Gopal explains that the decreased operations of Deed Registries has far reaching consequences for the property sector and is causing a great deal of consternation and frustration for South African property owners and as well as important role-players in other sectors, such as banking.

A research project initiated by SAPOA member Theodore Yach Property Services and undertaken by property valuer Aviva Herman indicates that, based on the national average monthly deed registrations, the loss of interest that sellers of property a faced with due to Deeds Registry delays averages an unwelcome R454 million each month.

The research also shows that the fees earned by agents, brokers, conveyances and banks amount to an average of R240 million each month and bank finance, based on a level of 11%, amounts to an average of R587 million each month – all of which are impacted by Deeds Registry delays.

“The smooth operation of the Deeds Registry ensures that the national property market holds its place as one of the most important indicators of South Africa’s economic health, especially given the burgeoning black middle class who are piling into the housing market,” says Yach. “Government therefore needs to give this proposal serious consideration.”