Category Legal

Property search, management and investment have been transformed by digital platforms, from online listings and virtual screening to real-time building data and AI-driven insights. Yet when ownership changes hands, South Africa’s system reverts to paper, wet signatures and in-person lodgement at the Deeds Office. As new models like fractional ownership gain traction, this growing disconnect between proptech innovation and statutory processes is increasingly where deals stall today in practice nationwide.

The Urban Development Zone (UDZ) incentive, established under section 13quat of the Income Tax Act, offers accelerated depreciation allowances to investors redeveloping properties within designated city zones. By reducing taxable income and improving cash flow, the incentive stimulates private investment in urban renewal. Extended to 2030, it continues to drive inner-city regeneration, with Cape Town alone attracting over R6.7 billion in development claims since its introduction — a proven catalyst for sustainable economic growth.

With the 7 December 2025 deadline approaching, owners of mixed-use buildings must assess whether parts of their properties require an Energy Performance Certificate (EPC). Under South Africa’s EPC Regulations, commercial components exceeding 2,000 m², clearly separable from residential areas, and accounting for more than 10% of total energy use must display an EPC. Hotels (H1, H5 classifications) are exempt, but mixed-use properties require separate assessments for compliance.

The Community Schemes Ombud Service (CSOS) has issued a new Practice Directive tightening governance and compliance requirements for bodies corporate and homeowners’ associations. The directive strengthens oversight, transparency, and enforcement across community schemes, empowering CSOS to intervene earlier and impose penalties for non-compliance. Trustees and managing agents face greater accountability, while owners benefit from stronger protections—marking a decisive step toward professionalising community scheme governance in South Africa.

As many sectional title schemes approach year-end, trustees face the annual budgeting cycle. A risky trend is under-budgeting to keep levies low, relying instead on special levies for shortfalls. However, the STSM Act requires “reasonably sufficient” admin and reserve funds, and special levies are only for unforeseen costs. Failure to comply exposes trustees to legal and financial liability. Proper budgeting protects members from surprises and ensures long-term sustainability.

The rise of sectional title schemes in South Africa has led to the creation of legislation regulating their management. Body corporates must comply with statutory obligations and ensure fair enforcement of management and conduct rules. Recent CSOS adjudications, such as Baribi v Victory Court and Swanepoel v Labella Complex, highlight the importance of evidence and reasonable rule interpretation before issuing fines. Failure to follow due process can result in adjudicators overturning body corporate decisions, emphasizing the need for legal compliance.

Proposed changes to South Africa’s divorce law could significantly impact property ownership, even for couples with antenuptial contracts. The General Laws (Family Matters) Amendment Bill will give courts broader discretion to redistribute assets upon divorce or death, considering non-financial contributions like homemaking or supporting a spouse’s career. This means primary residences, investment properties, and real estate-linked business interests could be divided more equitably, offering greater financial protection for spouses who have contributed indirectly to the marriage.

The updated POPIA Regulations, effective 17 April 2025, enhance data subject rights and organisational compliance. This article briefly outlines key amendments, emphasising the importance of adhering to strengthened data protection requirements.

As South Africans navigate the complex process of buying or selling property, they are sometimes surprised by the extensive personal details required by property practitioners. While the requests for identification documents, proof of address, and financial records can feel invasive, there is a clear legal requirement behind these checks.

The DTIC has issued a draft document on the creation of a R100bn Transformation Fund. Minister Parks Tau has said that the aim of the fund is to aggregate especially Enterprise and Supplier Development (ESD) funds in support of transformation and the participation of and sustainability of black-owned enterprises in the economy.