South African property owners and investors can take greater comfort in their rights from the latest Constitutional Court judgement and comments from leading South Africans, says Anton de Leeuw, CEO of independent property educationists YDL.

And it will be further strengthened when Parliament changes the Prevention of Illegal Eviction from and Unlawful Occupation of Land Act.

Earlier this month the Constitutional Court ordered government to pay damages to the owners of Modderklip farm in Gauteng because it had not moved 40 000 squatters from the property. “But as important was the process of confirmation of the owner’s property rights,” says de Leeuw. “The Johannesburg High Court evicted the tenants, but the Ekurhleni Council did nothing. The case was taken back to court, the evictions were confirmed and the Council ordered to do something. The government took the case to the Supreme Court of Appeal and lost. Then they took it to the constitutional court and lost.

“This aspect of property rights in the constitution has been thoroughly tested and the outcome is that the rights of property owners have been confirmed.”

De Leeuw cited former deputy governor of the Reserve Bank and current professor of business studies at Gordon Institute of Business, Gill Marcus, who told last weeks Sapoa conference in her keynote address at Sun City:  “We have a unique environment in the property sector that is very, very positive …  with a framework of property rights rooted in constitutional law.”

Some court judgements have emphasised that property owners have obligations with their rights, adds de Leeuw. For instance, the Constitutional Court recently found in favour of municipalities not issuing clearance certificates to transfer property that were sold when tenants or even illegal squatters are in arrears with electricity and other service payments.

“The Court said that municipal services give value to properties, so owners have an obligation to ensure they have the right occupants and to help the municipality deal with its property related problems. It did not say that the owner is legally responsible for his occupant’s debt, but practically speaking he or she would have to pay some of that debt to get a clearance certificate to transfer the property.”

Other property law and procedures – the deeds registry offices, for instance – make ownership one of the clearest and most secure in the world.

“And despite its history in social activism, our government recognises the importance of property ownership,” notes de Leeuw. “The Rental Housing Act recognises that government relies on private landlords to provide most rental accommodation in South Africa. 

The Act says clearly that the landlord is entitled to a reasonable return on investment and is designed to protect the owner’s interests as much as the tenant’s.”

“Government is also fully behind expanding the existing house market into the inner cities and former townships to give all property owners the opportunity to build their wealth through their homes”.

“We are not without problems. The unexpected interpretation of the PIE Act is giving landlords, often in high rent areas, problems. Lack of education and property knowledge is a major cause of deteriorating conditions in some inner cities and townships.”

“But generally we should all agree with Gill Marcus that our property environment is very, very positive.”

If you want greater know-how on residential investment and buying to let, YDL are hosting their Property Emperor workshop in Durban at Riverside Hotel on Saturday, 4 June from 8am to 1.15pm. Speakers include Ian Fife, Property Editor of the Financial Mail and seasoned investor, Anton de Leeuw of YDL and Mark Taylor, MD of Eland. For more information contact Yvonne de Leeuw on (011) 465-7356 or 0833812293, or visit www.ydl.co.za.

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