The risk is that this may make property acquisition even more cumbersome.

The PIE Act has been controversial since its promulgation in 1998, and SAPOA has been a forceful advocate for the interests of the commercial and industrial property industry in SA to be acknowledged in the legislation.

SAPOA’s initial unease with certain provisions of the Bill centred on land issues. The amended draft raises new concerns for the industry.

“SAPOA appreciates that our comments were taken into consideration from the land angle, but there are new issues that have come up in the amended Bill that need addressing,” says SAPOA CEO Neil Gopal.

SAPOA believes that the rights of owners are not all considered in the new Bill and that there is no equity in the application of the Bill’s terms.

“We are of the view that the Bill will make it more difficult to evict occupiers from buildings acquired by SAPOA members where no lease exists,” explains SAPOA legal services manager Tsakane Shilubane.

The Bill allows occupiers 30 days to oppose the application, an extension from the current 14 days.

“We are deeply concerned that the Bill offers no option of constructive eviction,” he says.

Another red flag for property owners is that any attempt to deprive an occupier of utilities, even where no rent is being paid, is a criminal offence.

SAPOA furthermore believes the procedures contained in the Bill will be more cumbersome than existing ones, discouraging SAPOA members from purchasing properties.

The proposed Bill will, however, offer some advantages to property owners, adds Shilubane.

“The Bill offers better protection for property owners who acquire properties where lease agreements are already in place,” he explains, pointing to the fact that the Bill – unlike the present Act – does not apply to tenants, owners or individuals who have some other formal agreement over the property.

“Based on this, SAPOA will advise its members to ensure that any tenants in properties they acquire have written lease agreements with the seller of the property,” says Gopal.