Estate agents battle as backlog of unprocessed transfers grows
Category News
Agents are unable to get their commission and properties are not being transferred to their new owners while SA remains in lockdown
Large estate agencies want the deeds office to be opened next week so that a growing backlog of house sales can be completed.
Agents are unable to get their commission and properties are not being transferred to their new owners while the economy remains in lockdown.
The deeds office has been closed since the government imposed the lockdown to help curb the spread of the Covid-19 pandemic a month ago. But other financial service entities are operating, having been deemed essential.
Pam Golding Properties CEO Andrew Golding said he was hopeful that President Cyril Ramaphosa would announce a reopening of the deeds office in his Thursday evening address.
"While we are still in lockdown and until the deeds office reopens, sales transactions remain uncompleted. We are hoping to receive clarity on the deeds office reopening this evening from the president," he said.
Samuel Seeff, chair of the Seeff Property Group, said the closure had led to high levels of uncertainty in the residential property market.
"The effect of the deeds office closures is significant. The first thing is that deals which were already lodged but transfers were not completed when the lockdown commenced, need to be processed urgently as these have caused a significant cash crunch in the industry," he said.
"Given the current deeds office system and validity of various clearance certificates, these 'pending' transfers will in all probability need to be relooked [at] unless measures are put in place from the municipalities. Either way, there will be a delay in the registrations and to the agents receiving their commissions. There may potentially also be additional costs for sellers," he said.
Seeff said the second problem was that while agents could operate and take offers digitally during lockdown, many contracts would have suspensive conditions that would need to be met.
"There are very few sight-unseen deals that are done. The financial risks are just too big. These only really take place in the case of developments where you are buying off-plan or where they buyer knows the complex or particular property well," he said.
If transfers don't take place, there is a significant loss of transfer duty tax revenue to the government.
"A great deal of people and businesses are dependent on property; it is not just buyers, sellers, estate agents and conveyancers, but the government, local municipalities, movers, decorators, renovators, electricians, plumbers and so on," Seeff said.
Agents are unable to get their commission and properties are not being transferred to their new owners while SA remains in lockdown
Large estate agencies want the deeds office to be opened next week so that a growing backlog of house sales can be completed.
Agents are unable to get their commission and properties are not being transferred to their new owners while the economy remains in lockdown.
The deeds office has been closed since the government imposed the lockdown to help curb the spread of the Covid-19 pandemic a month ago. But other financial service entities are operating, having been deemed essential.
Pam Golding Properties CEO Andrew Golding said he was hopeful that President Cyril Ramaphosa would announce a reopening of the deeds office in his Thursday evening address.
"While we are still in lockdown and until the deeds office reopens, sales transactions remain uncompleted. We are hoping to receive clarity on the deeds office reopening this evening from the president," he said.
Samuel Seeff, chair of the Seeff Property Group, said the closure had led to high levels of uncertainty in the residential property market.
"The effect of the deeds office closures is significant. The first thing is that deals which were already lodged but transfers were not completed when the lockdown commenced, need to be processed urgently as these have caused a significant cash crunch in the industry," he said.
"Given the current deeds office system and validity of various clearance certificates, these 'pending' transfers will in all probability need to be relooked [at] unless measures are put in place from the municipalities. Either way, there will be a delay in the registrations and to the agents receiving their commissions. There may potentially also be additional costs for sellers," he said.
Seeff said the second problem was that while agents could operate and take offers digitally during lockdown, many contracts would have suspensive conditions that would need to be met.
"There are very few sight-unseen deals that are done. The financial risks are just too big. These only really take place in the case of developments where you are buying off-plan or where they buyer knows the complex or particular property well," he said.
If transfers don't take place, there is a significant loss of transfer duty tax revenue to the government.
"A great deal of people and businesses are dependent on property; it is not just buyers, sellers, estate agents and conveyancers, but the government, local municipalities, movers, decorators, renovators, electricians, plumbers and so on," Seeff said.
Author: Business Day - ALISTAIR ANDERSON
