FINANCE MATTERS
Facilitating secure tenure and unlocking property value in Khayelitsha
By Jessica Robey , senior research analyst , 71point4
Since 2018 , the Transaction Support Centre ( TSC ) has worked to support formal property market transactions in lower-income neighbourhoods . A large part of the effort focuses on resolving title deed issues including regularising informal or off-register transactions that have taken place in the past , winding up deceased estates and facilitating primary transfer of subsidy properties that are still owned by the State .
The cases are inherently complex and can take many
months to resolve . However , it is critical work that must be done . By resolving client cases , the TSC not only provides homeowners with secure tenure , but it also unlocks the value of properties that would otherwise be ‘ dead capital ’ – assets that cannot be legally traded or generate wealth . While the challenges of this work are significant , it holds the potential to fundamentally shift the wealth trajectories of households , the prospects for renewal and economic development of South Africa ’ s townships and the financial sustainability of cities .
Through its physical advice office based in Makhaza , Khayelitsha , the TSC makes it as easy and as affordable as possible for clients to formalise property market transactions . To-date , the TSC has helped nearly 150 households obtain their title deeds , with another 140 title deeds lodged at the Deeds
Office . At the same time , the TSC works closely with various spheres of government as well as range of private sector provides to address the more systemic issues that result in an expensive and inaccessible formal property transfer system .
INFORMAL CASH SALES REGULARISED
In many areas , property owners sell their properties for cash using informal processes endorsed by local leadership , without updating ownership records at the deed ’ s registry . To-date , the TSC has seen 146 cases of clients seeking assistance with regularising a previous informal cash sale . These cases can be very time-consuming to resolve , especially if the whereabouts of the registered owners is unknown or they are deceased . Sixteen informal cash sale cases have been successfully regularised and title deeds handed over to clients with a further 14 transfers currently in progress .
ALL IMAGES : TSC
CASE STUDY 1
In July 2019 , Mr Mosalo approached the TSC for assistance with regularising ownership of his property in Khayelitsha . When he bought the property , the seller was paid in cash and no formal sale agreement was signed . The only ' proof ' of purchase he received was the original title deed from the seller . Having not kept in contact with the seller , it took Mr Mosalo a few months to locate the seller who now resides in rural Eastern Cape . Fortunately , the seller was willing to cooperate and signed the new sale agreement prepared by the TSC . The process was delayed because the seller only had a temporary ID which the City of Cape Town initially would not accept for the rates clearance process . After intervention by supportive City officials , a work-around plan was developed and the TSC managed to get Mr Mosalo ' s title deed registered and handed over to him in November 2020 .
CASE STUDY 2
Mr Mafani bought his property in Khayelitsha informally in 1997 . As with most informal cash sales , no formal sale agreement was signed and so the property could not be transferred into his name . Fortunately , Mr Mafani was still in contact with the seller who signed a sale agreement . But two challenges prevented a quick resolution of the case . The first was that the seller ' s date of birth was recorded incorrectly on the title deed , and the second was that the original title deed was lost . The regulations to apply for a new title deed also changed midway through this case and required the TSC to advertise the application in a local newspaper for two weeks before it could be processed . Nonetheless , after nine patient months , Mr Mafani received his title deed in November 2020 making him a very happy and proud legal property owner .
20 MARCH - APRIL 2021 SAAffordHousing saaffordablehousingmag SA Affordable Housing www . saaffordablehousing . co . za