DEEDS REGISTRIES AMENDMENT DEEDS REGISTRIES AMENDMENT BILL, 2010BILL, 2010

Public Hearing on the Deeds Registries Amendment Bill 2010

17-18 August 2010

DEPARTMENT OF RURAL DEPARTMENT OF RURAL DEVELOPMENT & LAND REFORMDEVELOPMENT & LAND REFORM

BackgroundThe Deeds Registries Act, 1937 (Act No

47 of 1937) (“the Act”) is the legislation that governs the registration of deeds.

In South Africa, the law does not explicitly guarantee title to land. The system of deeds registration is based on a juristic foundation and long-standing practices and procedures. It is this system which has the effect of ‘‘guaranteeing” title.

2

The system’s processes of examination, registration, monitoring of standards, keeping a public register, and preservation of records, all contribute towards providing security of title in the eyes of the law, financial institutions, and the public.

3

Background cont.

Background cont.

A Deeds Registries Regulations Board (DRRB), established in terms of section 9(1) of the Act, has the power to make recommendations to the Minister and to advise the Minister on any matter referred to the Board by the Minister.

The following amendments reflect the recommendations of the DRRB:

4

Clauses 1(a), (b) and 2(b) of the BillSections 2 and 3(1)(z)

• Registrars of deeds are currently not legally obliged to follow the practice and procedure directives that are issued by the chief registrar of deeds.

• Problems encounteredThe above state of affairs results in different practices and procedures being followed in the different deeds registries, a situation that confuses deeds examiners as well as conveyancers. 5

Clauses 1(a), (b) and 2(b) of the Bill cont. • Proposed amendment

The amendment of section 2 as proposed in clauses 1(a) and (b) of the Bill, as well as the insertion of section 3(1)(z), as proposed in clause 2(b) of the Bill, aims to legally oblige registrars of deeds to follow the practice and procedure directives that are issued by the chief registrar of deeds so as to ensure uniformity in all the deeds registries throughout the country.

6

Clause 2(a) of the BillSection 3(1)(u)

• Section 3(1)(u) of the Act contains reference to the registrar of mining titles; but the Mineral and Petroleum Resources Development Act, 2002 (Act No 28 of 2002) provides for the discontinuation of the registration of mineral rights in a deeds registry.

• Proposed amendment

The amendment of section 3(1)(u), in Clause 2(a) of the Bill, is necessary to reflect the correct position with regard to the discontinuation of the registration of mineral rights in a deeds registry. 7

SECRET

Clause 2(a) of the Bill cont.

• Section 3(1)(u) further contains reference to the “Supreme Court”, instead of the “High Court”, as contemplated in the Constitution of the Republic of South Africa, 1996.

• Proposed amendmentThe amendment of section 3(1)(u), to make reference to the “High Court” (previously ‘Supreme Court’), is a necessary and consequential amendment. 8

Clause 3 of the BillSection 9• The Act does not provide for the

appointment, by the Minister, of alternate members to the Deeds Registries Regulations Board (‘DRRB’).

• Problems encounteredIt often happens that members of the DRRB cannot attend meetings due to unforeseen circumstances. The absence of members to a meeting may lead to a quorum not being formed and the meeting being cancelled.

9

• Proposed amendment

The proposed amendment in Clause 3 of the Bill is necessary to prevent the cancellation of DRRB meetings due to a lack of a quorum which will ultimately also save costs.

10

Clause 3 of the Bill cont.

Clause 4 of the BillSection 17(2)

• Section 17(2) of the Act provides for the disclosure of the full names and marital status of a person in a deed that needs to be executed, registered or recorded in a deeds registry.

• Problem(s) encounteredThe Act does not provide for the above details to be disclosed in documents such as consents, applications, etc. This situation may lead to fraudulent registrations.

11

• Proposed amendment

Clause 4 of the Bill proposes that the full names and marital status of a person be disclosed in all deeds and documents that need to be executed, registered, or recorded by a registrar of deeds.

12

Clause 4 of the Bill cont.

Clause 5 of the BillSection 34• Section 34 of the Act allows an owner of a piece

of land to apply for a certificate of registered title for his/her undivided share in land, in instances where such land is owned in joint ownership.

• Problems encounteredCurrently no mechanism in the Act allows an owner of land to obtain a title deed of any fraction of his/her undivided share in such land (for instance “1/52 share in erf 2003, Cape Town”). 13

• Proposed amendment

The proposed amendment of section 34, in Clause 5 of the Bill, caters for the issuing, to any owner, of a certificate of registered title of any fraction of his/her undivided share in such land.

14

Clause 5 of the Bill cont.

Clause 6 of the BillSection 102 – definitions

• The definition of ‘Master’ contains reference to the ‘Supreme Court’;

and

• the definition of ‘Minister’ refers to a previous title .

15

Proposed amendment(s)

• The amendment of the definition of ‘Master’, in Clause 6 of the Bill, is consequential to the change of name of the High Court as contemplated in the Constitution of the Republic of South Africa, 1996.

• Clause 6 of the Bill also seeks to express the correct title of the Minister in view of the recently appointed Cabinet members. 16

Clause 6 of the Bill cont.

Clause 7 of the Bill

Clause 7 of the Bill contains the short title.

17

THE END!

THANK YOU!

18

DEEDS REGISTRIES AMENDMENT BILL 2010