A significant, and frankly long overdue, step towards modernising SA’s land registration system is now under way with the enactment of the Deeds Registries Amendment Act. Not only will this law migrate property transactions to a digital system, but it holds the potential to speed up registration times and provide policymakers with crucial data on land ownership patterns to inform future decisions.
The act should help streamline processes by transforming a paper-based system into a fully electronic one. While the benefits of digitisation are undeniable, this progress must not leave behind those without access to digital tools or the necessary skills to navigate such systems. The departure from the current paper-based system is welcome, but we must remain vigilant about the potential gaps the digital transition could expose.
Why paper records will not cut it
For decades the Deeds Registries Act of 1937 has guided property registration in SA, with periodic amendments attempting to modernise an ageing process. However, the current manual system is slow, often leading to delays that can have profound consequences for property buyers, sellers, conveyancers and financial institutions alike.
The property transfer procedure exemplifies these problems. When a sale is agreed upon and transfer documents are signed, this paperwork is submitted to the lodgement counter at the Deeds Office. Here deeds are scanned using a bar code tracking system, which allows the conveyancing attorney to track the transaction through the Deeds Office.
The transfer of a property may be accompanied by the registration of a mortgage bond so the Deeds Office links these documents to be examined as one batch. Once linked, the data section then verifies information and checks any interdicts against the entities involved in the transaction or against the property.
If all is clear, these papers are then examined by different examiners. Should there be any errors with the gathered documents they are sent back to the distribution section, potentially lengthening the registration process. If the deeds are found to be in order, the attorneys are notified that the examination is complete. Deeds are then sent for execution by the conveyancer in the presence of the registrar of deeds, where registration takes place.
Should there be no errors with paperwork and the Deeds Office is operating optimally, this process currently takes 7-14 working days. Digitisation promises to fast-track the registration of deeds and transfers, reduce duplication and errors and introduce robust measures to curb fraud through enhanced security protocols such as mandatory electronic signatures.
Such a move brings SA in line with digital conveyancing systems introduced in countries such as the UK and United Arab Emirates, which both transitioned to digital in 2018.
Security and access are essential for success
Important questions about the digital leap need to be answered. The act requires the chief registrar to establish and maintain an electronic registration and records system. This task comes with its own set of technical and logistical complexities. Does the state possess the requisite capacity to develop such a system independently, or should it engage with private sector experts?
There is little doubt that businesses are at the forefront of digital innovation. A collaborative approach that combines state infrastructure with much-needed private sector expertise can yield optimal results. Such a system needs to do more than be efficient, it needs to be secure against the persistent threat of cyberattacks, which have recently targeted institutions like the SA Revenue Service, the SA Social Security Agency and the SA Weather Service — costing the country billions of rand annually.
Digitisation does not inherently equate to diminished security; on the contrary, any digital system must be underpinned by stringent cybersecurity measures to protect sensitive personal and property data. With transfer of property often marking a significant milestone in people’s lives, any breach or failure in the system could have lasting repercussions. Policymakers must, therefore, leave no room for cutting corners when it comes to data protection.
Equally important is the need to address digital exclusion. While modernising the system will undoubtedly improve efficiency for many, there is a risk that those without access to digital resources or the skills to use them will find themselves marginalised. In a country where property ownership cuts across racial and class lines, it is essential that the new system remains accessible to all.
Communities that might not have ready access to conveyancers or digital support must be provided with adequate resources to enable their engagement with deeds offices. Moreover, a transitional period where manual processes remain in place could be considered to ensure no-one is left behind as the country embraces digital innovation.
Embracing digital innovation
The act represents a long overdue step towards modernising SA’s property registration system. The potential gains in speed, transparency and security are significant. However, this progress must not be achieved at the cost of excluding those less familiar with or less able to access digital tools. By embracing collaboration with the private sector, investing in robust cybersecurity and ensuring comprehensive support for all users, the government can safeguard the interests of every citizen.
In doing so, SA can ensure that the shift to a digital deeds registry is truly inclusive. The challenge ahead is not merely technological; it is fundamentally about ensuring that progress serves all segments of society. Let us welcome digitisation but with a steadfast commitment to leaving nobody behind.
• Mahlangu is director and head of real estate & conveyancing at CMS.
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