Digitalising Real Estate Lockdown Real Estate Guide | Page 10

LEGAL
Property transactions
during lockdown
Are you still bound by the agreement?
KAGISO MAHLANGU
FINANCIAL
How to minimise the effect of
the lockdown on your wallet
T
he Coronavirus (COVID-19) has impacted various
facets of life since it reached South Africa, and
household finances will not be spared. However,
it remains important not to overreact and make panic
purchases or hasty financial decisions.
According to Head of Financial Education at Old Mutual,
John Manyike, the urge to stock up on groceries is natural
given the uncertainty and anxiety the pandemic has caused.
“But you need to resist that urge, because over-spending
could break your wallet. Retailers are unlikely to run out
stock because of the virus, and much of what you pile
into your trolley, such as perishable products could go to
waste especially with load-shedding still lingering and your
financial wellbeing could be severely compromised if you
haven’t planned or budgeted properly,” He says.
Manyike adds that people should be mindful of the
impact of the early and prolonged closure of schools on
ADVICE TO CONSUMERS
A
s companies and individuals come to terms with
what lockdown means, many are getting over the
initial shock and starting to wonder what happens
to their property transactions that were under way as
lockdown was declared.

“With most stakeholders closed during the lockdown
period, most property registration transactions are on pause,”
says Kagiso Mahlangu, director at legal firm CMS RM Partners.
Mahlangu’s practice focuses on conveyancing and securities,
the two pillars of corporate property transactions.
She warns that companies are still bound by the agreements
they have already signed. “The next step is for parties to start
agreeing on extensions for the fulfilment of conditions where
necessary. For instance, an occupation date may need to be
adjusted in line with lockdown dates,” she explains.
It’s important to check the terms of the agreement to see
if there are any provisions which deal with what happens
if one party can’t fulfil their contractual obligations due to
unforeseen circumstances beyond their control. This is known
as force majeure, and many companies are currently invoking
it to address a number of contractual conundrums, not only
those relating to property.
This does not, however, absolve parties from their
responsibilities. 
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COVID-19 - 2020

“In order to mitigate further delays, each party to the
transaction should do what they can under the circumstances.
For a property transfer, this could mean electronically
drafting documents that will need to be signed by the seller
and purchaser, starting to pack up non-essential items, or
getting rid of what you don’t need in preparation for moving,”
Mahlangu says. 
These actions show that you are acting in good faith and
have every intention to comply with your obligations under
the contract, even though circumstances beyond your control
make it impossible for you to comply immediately.
As is so often the case, communication remains deeply
important and should not be avoided, says Mahlangu.
your pocket. This step by the government, aimed at slowing
down the spread of the virus, means children will be home
for longer periods. This may result in increased spending to
help keep them fed, entertained and occupied. It will also
have a ripple effect on the rate at which household items
get used up. Snacks, cleaning products and electricity
generally last longer during school terms.
“This is the first time most South Africans have had to
deal with the reality of a life-threatening pandemic, and
everyone is justifiably shaken. However, it’s important
to avoid rushing into decisions, especially as it relates
to finances. It’s hard to predict how long the virus will be
among us, and for this reason we should not guard against
making rash and irresponsible financial decisions,’ concludes
Manyike.
SOURCE Old Mutual

Money, food, water and electricity must be used
The nature of this pandemic is terrifying; however sparingly during these uncertain times as we do not
you shouldn’t be making financially crippling know how long it will take to contain the virus. Other
decisions that may lead to unnecessary debt. Load countries in the world were forced to completely
shedding is still among us, what will happen to all shut down to limit local transmissions of the virus,
the perishables you may have bought if you have therefore responsible consumption cannot be
overemphasised. Avoid any form of wastage.
limited electricity supply? The best approach is to
monitor the situation regularly without making

Make sure you know what medical and insurance
Download educational games on phones and cover you have in place, and whether it applies
laptops. during a global pandemic. If you have travel
Line up educational games and activities you can insurance, make sure you understand all the terms
engage in as a family and to keep the children’s and conditions it stipulates, if you don’t, contact
starting to lower data costs as part of their

your insurer immediately.

SOURCE CMS RM Partners
Take a long-term view when it comes to
response to the COVID-19. investing.
Be Proactive and approach your credit Don’t get tempted to disinvest because of panic.
providers. Markets are generally volatile during uncertain
times, but this is temporary.
Approach credit providersiIf your household
KAGISO MAHLANGU Director at legal
firm CMS RM Partners, a leading BEE Level 1
full-service commercial law firm specialising in
providing high quality, practical and innovative
legal, tax and transaction advisory services.
Check your insurance & medical aid.
long-term decisions.
minds stimulated. Network providers are also
“Communication is key to ensure that all parties remain
on the same page in the interests of seeing the transaction
through,” Mahlangu concludes.
Cultivate a culture of responsible consumption.
Avoid taking out loans to buy in bulk.
income is affected due to the vulnerability of

Be vigilant.
your industry. Particularly if you anticipate that If you display any of the flu-like symptoms and
you will struggle to service your debts, don’t wait suspect you might have COVID-19, please call your
for debt collectors to knock on your doors. Make doctor or call the public hotline number on
arrangements in advance. 0800-029-999 immediately.
COVID-19 - 2020
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