July 4 2024

This is a guest article by Savannah Solomons of Solomons Attorneys. She has worked with a range of companies including start-ups, large groups and multinationals. In this piece she details how digital platforms which drive improved efficiency have been abused by fraudsters in the property industry, and what individuals and companies can do to protect themselves.
Introduction
When it comes to property ownership in South Africa, a Title Deed is the legal evidence that you truly own a property. You need to think of it as the registration papers for a car or the share certificate in a company.
Digital platforms have created a simple and time effective platform to find a property to buy or rent, but have also facilitated a rise in sophisticated property scams. Property fraud is a reality in South Africa and it is vitally important to understand your rights as far as property ownership is concerned.
What is Property Fraud?
In South Africa, fraud is defined as the unlawful and intentional making of a misrepresentation which causes actual or potential prejudice to another. Property fraud can occur in many ways from the sale of a home that is not actually up for sale to identity theft resulting in the fraudulent transfer of ownership.
We see this in the case:
Botha NO v ZLeboko-Radebe and Others (16835/2021) [2022] ZAGPJHC 724 (22 September 2022), in the High Court Gauteng Division, Johannesburg, considered whether fraud should result in the cancellation of a title deed relating to immovable property.
In this case, a man named Jeremiah Radebe bought an immovable property in 2002 and in 2004 he passed away. Jeremiah Radebe had divorced a woman named Nthibi Leboko (Leboko) in March 1997. Upon his death, Leboko pretended to be the surviving spouse of the deceased. She fraudulently obtained letters of authority in the estate and managed to transfer the property into her name. As the transfer of the property occurred because of Leboko’s fraudulent activity, the court ordered the property be returned to the deceased estate.
Meanwhile, a man named Granville Sanderson has just been convicted of cyber fraud and money laundering by the Regional Court in Upington, Northern Cape. He defrauded two people through fake property sales.
Legal Framework Governing Property and Title Deeds in South Africa
The Deeds Registries Act, 1937 (Act No. 47 of 1937), establishes the legal framework for registration of documents pertaining to land ownership and this includes Title Deeds. The Act outlines the procedures for the registration process which ensure that properties can be lawfully owned and transferred.
The main provisions of the Act relate to:
- The Establishment of deeds registries which are responsible for maintaining public records of land ownership and other real rights;
- The appointment of registrars who are people who oversee operations of the deeds registries and compliance with the Act;
- Registration requirements which are the requirements for registering documents;
- The process for transferring ownership;
- The process for registration of real rights such as servitudes and mortgage bonds;
- Public access and inspections.
The role of the Act is as follows:
- Security of title: Property ownership is secured and disputes of fraud can be reduced;
- Legal certainty and predictability in property transactions;
- Transparency in the property market by ensuring records of property ownership are accessible to the public;
- Protection against fraud;
- Facilitation of property transactions.
Overall, the Deeds Registries Act plays a crucial role in maintaining the integrity and reliability of the property registration system in South Africa, protecting the rights of property owners, and ensuring the smooth functioning of the property market.
Common Methods of Property Fraud
- Fake rental listings and agents;
- Phishing scams;
- Government housing assistance scams;
- Identity theft scams;
- Time share scams;
- Identity theft and impersonation.
Legal Protections and Remedies
- How to protect yourself from property fraud:
- The deeds registry can be accessed by the public, it is therefore vital to check ownership registration to ensure that the details of the owner are correct;
- Conduct a due diligence to ensure that all details relating to the property agent as well as the property itself are verified and authenticated;
- Ensure that you verify estate agents, owners, and banking details beforehand, verify banking details by:
- Contacting the account holder personally to verify bank details received electronically by the phone or in person; and
- Have your bank verify the banking details of the account holder for you.
- Legal remedies available for victims of property fraud:
- Criminal charges:
- First you report the matter to the police to investigate and from there the National Prosecuting Authority will take over to prosecute the criminal/s.
- Civil Litigation:
- Victims can file a law suit to seek damages including compensation or recovery of property;
- Depending on the situation, interdicts or restraining orders may be obtained.
- Action can be taken against the Registrar of Deeds;
- Claims can be pursued against conveyancers and attorneys where it can be proved that they were negligent;
- If the fraud involved misappropriated funds by an attorney, the Fidelity Fund can be approached.
- Criminal charges:
Steps to Take if You Suspect Property Fraud
- Verify Information: Double-check the details of the property transaction and the authenticity of documents.
- Seek Legal Advice: Consult with a property attorney or legal expert specializing in property law and fraud.
- Report the Fraud: Report the suspected fraud to the police and other relevant authorities.
- Protect Your Interests: Take steps to protect your property rights, such as applying for an interdict or rectification of the deeds register.
Conclusion
Property fraud can be devastating! While this is the case it is important to remember that South African Law provides multiple avenues for victims to seek redress and reduce as well as recover losses. Applying the tips above before finalising any transaction is absolutely essential in avoiding becoming a victim of fraudsters.
Where property fraud does occur, it is absolutely vital for victims to act quickly in order to navigate cases of property fraud quickly and effectively. If property fraud is suspected, it is therefore essential to seek legal assistance promptly to deal with the issue effectively.
If you ever require assistance with a property related issue, contact Savannah Solomons of Solomons Attorneys on:
Cell: 079 503 0812
Email: savannah@solomonsattorneys.co.za
I Login complaint my property register fraudulent title deed office Johannesburg l report the Matter longtime from the date of issue title deed my problem the property register to my name at city of ekurhuleni but someone hijacking my property database on my name Rates and taxes on my name how deed register the property without proof payment from municipal city of ekurhuleni
I check the property title deed erf 103Moleleki section katlehong name bongani samuel Mtshali ld 620629 5397 084
The property l check the title deed copy for BS Mtshali in database deed office my name not in database. how long take to appear name in database deed office
How about my property title deed Register to my name BS Mtshali erf 103Moleleki section katlehong
Hi morning I am Mr Patrick Onkruid I also got a fruadelent case of my property that is finished but got nothing in return. Can the case beropen. Please info me.
When can I get the title deeds delivered to human settlements ekurhuleni ccc2 katlehong bongani samuel mtshali ld 620629 5397 084 erf 103Moleleki section katlehong