South Africa’s property industry significantly contributes to the country’s GDP – with up to R12bn in deeds processed in a single month.
The Covid-19 lockdown and ongoing pandemic alert levels are ravaging the economy and the livelihoods of millions of South Africans. When the deeds offices are closed, thousands of transactions are placed on hold. This effectively means a loss of income for thousands more who are directly and indirectly involved in related sectors and services.
And with the Cape Town Deeds office straining with a backlog of some 14 000 deeds and needing to be decontaminated and re-opened after a second closure since the advent of Alert Level 3 – concern has been raised about the future operation plans of this critical office in the property value chain to safeguard not only the those working in and with the Deeds Office but the earning potential of the industry overall.
The Johannesburg and Pretoria offices have just had to close due to a conveyancer testing positive for Covid-19.
UPDATE | More deeds offices close due to Covid-19, serious Cape backlog - What you need to know
Clive Hendricks, Chairperson of the Cape Town Attorneys Association says it is for this reason that they, together with Tygerberg Attorneys Association and the Institute of Estate Agents of South Africa (Western Cape) have lodged an urgent application in the Western Cape High Court.
Hendricks explains that the application has four main legs being:
- The Cape Town Deeds Office re-open and resume its full operations immediately with sufficient staff, subject to social distancing and related health protocols;
- The Minister of Rural Development and land Reform together with the Chief Registrar of Deeds and the Cape Town Registrar of Deeds develop, publish and implement a rapid and effective intervention plan aimed at addressing the current transaction backlog in the Deeds Office;
- The Chief Registrar and the Cape Town Registrar develop, publish and implement an integrated and co-ordinated Deeds Office Covid-19 Action Plan to ensure that there is a hierarchy of interventions with closure of a particular office being the absolute last option to consider;
- The Respondents lodge a comprehensive report with the Court setting out the progress and statistics pertaining to the backlog on conveyancing transactions and turn-around timeframes for normal conveyancing transactions by Wednesday, 30 September 2020.
On Friday the 12th of June the Western Cape High Court granted an order in terms whereof the Cape Town Deeds Office will re-open on Monday, 15th of June. The hearing on the remainder of the relief sought by the CTAA will resume in court on Friday, 19 June after the Respondents have had an opportunity to file affidavits setting out their respective positions.
Hendricks says, “If uniformity across the country is what the Chief Registrar of Deeds aspires too, then it is essential that the intervention plans of the Deeds Office not only deal with the current backlog which is growing on a daily basis, but also with the time frames associated with closure of each office.”
“It is currently not clear if an affected office will be closed overnight or for a period of five working days.
“It is also unclear why reference is always made to ‘decontamination’ when the directions issued by the department of labour on 4 June also refers to steps of cleaning or disinfecting affected areas.
“The first closure for ‘decontamination’ saw the deeds office close for two days but last week the closure lasted a full five working days," says Hendricks.
“If closure of institutions providing essential services is the first and only option, the devastating effects of the Covid-19 pandemic will still endure for a very long time,” says Hendricks.
As per the High Court application, Hendricks says the Cape Town Deeds office must comply with "Regulation 45 of the Deeds Registries Act which sets out the processes and time periods that the Deeds Office must adhere to and immediately deploy sufficient and qualified staff to attend to the backlog, the examination of deeds and related services".
The full staff compliment across all services at the Cape Town Deeds Office is approximately 190 employees, with an estimated 55% meant to be working during Alert Level 3. Chief Registrar of Deeds Carlize Knoesen previously detailed to Property24 the operating capacity and forward plan for re-opening on Monday, 15 June.
“A national committee and provincial committee to assist all the Deeds registries and all other chief directorates in the provinces in management have since been created. I’ve been informed in the Western Cape that the Provincial Chairperson communicated the capacity to return to office can only be one third (of the full staff compliment).
“The Cape Deeds plans to work from June 15 with 58% on senior examination and 54% on Junior examination, which is more or less 55% of operations,” states Knoesen.
Hendricks says that he does not believe the Deeds Office "deployed enough staff to address the backlog, while ensuring a smooth running of new lodgements going forward".
“The application also requires a comprehensive report detailing progress and statistics pertaining to the backlog on conveyancing transactions and turnaround timeframes for normal conveyancing transactions as at and by 30 September 2020.
“This is to ensure accountability and that clearing the backlog does not become an open ended process with no end in sight.”
The usual turn around target is to have all deeds lodged, available for registration within 7 workings days, according to the Chief Deeds Registrar.
Knoesen previously confirmed the department is still working towards this 7 working days’ turnaround, despite not having full capacity at the various offices due to the required Covid-19 safety and hygiene protocol that has to be implemented.
The standard operating procedure pf the Deeds Offices to deal with backlog is said to involve a “hybrid system where small teams each deal with specific processes from endorsements to checking interdicts to speed up the process".
“Usually, examiners, deputy and assistant registrars will start voluntary examining extra deeds over and above the daily quotas,” says Knoesen.
According to Hendricks the old voluntary and hybrid systems are no longer “fit for purpose” as appropriate intervention plans to deal with the current backlog in the context of Covid-19.
“We cannot rely on old ways of doing things, as if we’re not dealing with a pandemic”.
Hendricks says, “Since the risk of infection will not go away in the short term, service providers will have to develop sensible intervention and continuity plans to minimize possible negative fallout.
“The public is entitled to know these plans and challenge it for rationality, if needs be."
The Cape Town Deeds Registry is expected to submit their intervention action plans to address its backlog by Friday, 19 June 2020.
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