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A CAPE TOWN DEEDS OFFICE STRIKE WILL CRIPPLE THE RESIDENTIAL MARKET, SAYS VINEYARD ESTATES CEO
The news that the civil servants in the Cape Town Deeds Office could be joining the countrywide strike is disturbing to the Cape’s property sector, says Anton du Plessis, CEO of Vineyard Estates.
“Any delay on the transfer of property can be disastrous to those involved,” said du Plessis. “Large sums of money which clients had expected to have in their possession are held up and anticipated transactions are jeopardised.
“Then, too, people who counted on being able to move into a new home on a certain date may find that this is not possible or that they are having to pay occupational rent on what is in fact their own property. Often they are forced to move out of their existing homes as their lease has expired.”
The situation, said du Plessis, can be particularly difficult if one of the parties involved is moving overseas.
In view of the disruption which will inevitably follow a hold-up of transfers, said du Plessis, the property sector would welcome the government declaring Deeds Office work an essential service on which strikes have to be limited to a few employees at a time.
“The government itself,” added du Plessis, “will lose out heavily from hold-ups at the Deeds Office. In Newlands, Kenilworth, Claremont, Bishopscourt and Constantia alone, for the month of June, no less than R306 million worth of transactions were reported by estate agents registered with the Institute of Estate Agents. Considering that these suburbs represent only a tiny segment of the Deeds Office traffic, it is clear that the government will lose significantly on interest that would have been earned on that revenue.
In addition, it has to be realised that some of the transactions will probably fall through because of the unanticipated delays. On these transfer duties alone, the government stand to lose millions in revenue due to them.