For users of land or property investors in South Africa, a new bill has been signed into law by South African President Cyril Ramaphosa. The new law code-named ‘‘the Electronic Deeds Registration Systems Act of 2019’’ will enable property deeds (land or house papers) to be processed electronically. In other words, documents involving land or property transactions in South Africa can now be registered online from any part of the world. This is a remarkable feat and a potential improver in the ease of doing business for South Africa.
Also signed into law include the Overvaal Resorts Limited Repeal Bill of 2019, the Property Practitioners Bill of 2019, and the Film and Publications Amendment Bill.
Here Is All You Need To Know
Electronic Deeds Registration Systems Act of 2019
- The Electronic Deeds Registration System Act provides for the development of an Electronic Deeds Registration System — also known as e-DRS — through which South Africa will take advantage of the benefits offered by internet access, e-commerce and global computerisation in the management of security of property title.
- The new system will enable the electronic processing, preparation and lodgement of deeds and documents by conveyancers and the Registrar of Deeds.
“It will also enable the registration of large volumes of deeds effectively; improved turnaround times for providing registered deeds and documents to clients; countrywide access to deeds registration services; enhanced accuracy of examination and registration; availability of information to the public, and security features including confidentiality, non-repudiation, integrity and availability,” South Africa’s Presidency spokesperson Khusela Diko. said.
This is set to greatly enhance security of title and the acquisition and disposal of fixed assets.
Potentially once the electronic system has been put in place, this may land a death blow to conveyancing lawyers or notaries public who previously notarised land documents.
Notable Provisions of the Law
- Under the new law, potential registrants of property title deeds in South Africa shall now do so online, instead of having to visit a physical land registry. The Chief Registrar of Deeds is vested with the duty to develop, establish and maintain the electronic deeds registration system using information and communications technologies for the preparation, lodgment, registration, execution and storing of deeds and documents.
- Under the new law, any deed registered under this method is as valid as though it has been physically registered,executed and filed. More specifically, the law provides that subject to section 14 of the Electronic Communications and Transactions Act, a deed or document generated, registered and executed electronically and any other registered or executed deed or document scanned or otherwise incorporated into the electronic deeds registration system by electronic means is for all purposes deemed to be the only original and valid record.
- Potentially once the electronic system has been put in place, this may land a death blow to conveyancing lawyers or notaries public who previously notarised land documents. The new law provides that once the electronic system has been put in place, the preparation and lodgement procedures involving notaries public will be discontinued in respect of all deeds, documents or deeds registries. Consequently, the implication of this new provision would be that any deed or document electronically executed or registered, shall be deemed to have been executed or registered in the presence of the Registrar by the owner or by a conveyancer authorised by power of attorney to act on behalf of the owner, without needing to the notarisation of the notaries public.
- The new law will also make conduct of searches or enquiries into land titles in South Africa easier. To that effect, South Africa’s Minister of Rural Development and Land Reform has been empowered to make regulations regarding the procedure and manner for accessing the electronic deeds registration system for information purposes.
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Percentage of foreign buyers snapping up South African property. Source: Private Property
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Property Practitioners Act of 2019
The property market in the country also stands to gain from the newly signed Property Practitioners Act of 2019, which repeals the 43-year-old Estate Agency Affairs Act of 1976 (Act 112 of 1976).
“The Bill that the president has assented responds to the dynamic needs of the real estate industry and is aimed at improving the functioning of the property market, which includes regulating the buying, selling and renting of land and buildings,” said Diko.
Among other innovations, the Act establishes a Property Practitioners Regulatory Authority and provides for the appointment of the Board of this regulatory authority.
The Act also puts in place better monitoring mechanisms, including requiring inspectors to obtain warrants to enter premises.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world