The announcement in the local media that Deeds Office employees will be going on a countrywide strike next week was met with dismay by Bill Rawson, Chairman of Rawson Properties.
'The strike action will effectively bring the property and financial market to a standstill and will have disastrous consequences for property buyers and sellers alike'
'End of year is the most popular time for relocations and with all property transactions staying suspensive, it could mean that property owners might not be able to take transfer of their new homes and therefore wont be able to relocate on schedule'
The other possibilities include that sellers will leave homes vacant as they have to move into their new homes and buyers are unwilling to move in before the transfer process is complete. 'Vacant homes are vulnerable to vandalism and repairs could cost the seller thousands if insurance companies refuse to pay out claims for a vacant home'
This effect will also filter through to tenants, who have cancelled or expired lease agreements in the hope of moving into their own property shortly. 'These tenants will have to re-negotiate with their landlords, or be forced to pay for hotel or guest house accommodation, otherwise they might find themselves without a place to stay'
The cost to the consumer will also be considerably increased with transfers that might take up to six months to go through. 'This could have far-reaching effects on property buyers in terms of interest accrued on their loans over that period'
Another cost to the consumer could occur when they need to apply for bridging finance (that is if they urgently require the capital they would have obtained from the property transaction) and the high interest rate that is charged by financial institutions on this type of financing.
Apart from the disastrous consequences on the consumer, the professionals that earn a living from property transactions will also be affected as no transfers can become final. 'No commission and fees can be paid to estate agents, mortgage originators, property developers or conveyancing attorneys before the transfer can go through'
Rawson made a plea to government to accommodate the Deeds Office employees who offer an invaluable service (one of the best in the world) to one of the most buoyant sectors of the South African economy.
'I see no reason why these employees should not reap the benefits of their profitable industry and be compensated to deal with the massive workload they manage to deal with so efficiently'
