UPDATE: South Africa is now in its second week of Lockdown - with unconfirmed questions about whether the lockdown will be extended after 16 April.
As frightening as what the COVID-19 is, it is also proof that we can all come together and unite. During this time, experts have all come out to give advice, health workers doing their very best to heal those in need and everyone just going the extra mile to make sure that their fellow neighbour is taken care of.
"There is something poetically beautiful yet daunting about the entire world going through this unprecedented time," says Mike Greeff, CEO of Greeff Christie’s International Real Estate.
Greef offered these answers to pressing property-related questions that you might be having.
"We are all trying to navigate our way through this pandemic, and it is important to note that the information we are supplying is relevant for now – things are constantly changing and with that, information too.
Below are a few of your FAQ’s:
Q: What happens if I was planning on moving?
A: ‘’No one is permitted to move during lockdown so you will have to stay put’’ says Junel Hickman, Associate - Attorney, Notary and Conveyancer at STBB. Once the lockdown has been lifted, people can move. There are no transfers taking place in any way, so it would come down to agreement between the parties regarding occupation and occupational rent, if applicable.
Q: If a seller decides he no longer wishes to sell, is it possible to cancel the deal? Same with a buyer who no longer wishes to go through with the purchase?
A: No – it is still a valid and binding agreement says Hickman. If there are financial issues, it may constitute a breach or, if the Agreement was subject to a bond, the bond may possibly be turned down and the agreement would be void. If the bond was already granted, it would again be a breach of the agreement if the bond is revoked due to changes in financial circumstance. However, Greeff advises that "if both parties wish to cancel the deal, it can be done through a cancellation agreement’’.
Q: Can all the necessary paperwork be done digitally so when the lockdown is lifted, everything is in place?
A: Hickman advises that documents in property transfers cannot be signed digitally as per the Alienation of Land Act. ‘’Agreements of sale cannot be signed digitally but have to be printed and signed but scanned copies are acceptable’’. Powers of Attorney also cannot be signed digitally, and we require the original in order to lodge. Bond documents also have to be physically signed in front of an attorney.
Q: Are there any legalities people should consider during this lockdown that’s property-related?
A: If there are transfers pending, it is important that sellers keep the property well-maintained and in the same condition as at date of sale (applies at all times, not just lockdown) but access to garden services, pool services etc, is limited. If something happens to property which can only be attended to after lockdown, the seller must disclose this and ensure it is attended to promptly.
Q: What happens if a lease for a residential property is about to or has already expired during the lockdown?
A: Mark Burt, Rental Manager at Greeff Christie’s International Real Estate says that due to the imposed lockdown, tenants and landlords ‘’have their hands tied and both parties could find themselves unable to perform their respective legal duties’’.
Burt adds that no one is permitted to move in or out of a property during lockdown so in essence, tenants will have to remain on the property where they presently reside and will be liable to pay rent pro rata. The same applies if you are moving into a new property, however you will not be liable for rent due at the new property as everything is frozen until after lockdown.
Q: Can a tenant use the security deposit to pay for the pro-rata rent for a residential property?
A: Many tenants have this misconception they have the right to tap into their deposits held in trust (during this time) says Burt. Unfortunately, these are damage deposits held for a very specific purpose and are regulated under most leases and current legislation. Greeff cautions that ‘’using your security deposit for rental is not allowed and should be outlined in most leases’’.
Q: Are there any rules I should adhere to if I live in a complex?
A: The South African Police Service (SAPS) has said that ‘’residents who live in a complex or estate are urged to adhere to the lockdown rules i.e. staying indoors’’. When the lockdown was implemented, jogging and walking the dogs were prohibited and this extends to those residents living within a gated estate or complex. Greeff says that the main purpose of the lockdown is to ‘’reduce the number of people outside in order to prevent the spread of the virus’’ so by being outside, within your estate or complex, defeats the purpose of the lockdown.
Q: If I was looking to buy a home, should I stop my search until the lockdown is over?
A: This is the ideal time for aspiring buyers to start or continue looking because of the 1% drop in the repo rate says Greeff. The repo rate cut means buying a home is more affordable and more attainable, especially for first-time buyers. ‘’The Covid-19 pandemic should not deter potential buyers from looking because they can still do so from the comfort of their homes’’ continues Greeff.
South Africans are a resilient people and we have come together not only to fight this virus but to get together as one united front. “These unprecedented times can cause fear and panic, but I believe they will also provide a fantastic opportunity for innovation, and there will still be deals done as people look for normalcy”, encourages Greeff.
10 Lockdown FAQs as SA aims to stem the spread of Covid-19
South Africa has spent its first weekend in full lockdown - with certain parts of the country taking strain as a nationwide 21-day, stay-at-home drive aims to curb the spread of Coronavirus Covid-19.
Government announced a lockdown across South Africa, which began at midnight on Thursday 26 March, and will continue until midnight on Thursday, 16 April - with this week seeing many South Africans needing to collect their social grants as special measures to the lockdown are put in place.
1. When can I leave my house?
There is no need for panic, as lockdown has not meant a total shutdown. People are still being allowed to get to the shops and access essential goods and services - but in small numbers. Stores are limiting the number of people allowed to shop at the same time to ensure social distancing of more than a metre when in a public space. It is advisable to wear a mask and gloves when out in public.
Practice hygiene and wash your hands for 20-seconds with soap and water when you return home and make use of the hand-sanitiser provided at the entrance of stores. It also can't hurt to wipe down the goods you've brought home from the store too.
2. What services will remain open?
Only shops providing essential services and goods will remain open. These include grocery stores, banks and petrol stations. Health care services including hospitals, clinics, doctors, pharmacies and labs will remain open. The police, metro police, military and emergency services will also continue to operate.
3. What should I do if I'm feeling sick and think I have Covid-19
People are being advised to self-isolate and call a doctor instead of going to a hospital, where they might infect more people. You should also separate yourself from your family if you suspect you have the virus. Speak to a medical professional who can then advise you on the next steps to take, depending on the severity of your symptoms. Check the symptoms here.
4. What will happen if I don't obey the lockdown regulations?
If you don't adhere to the restrictions on movement and closures it is seen as an offence - meaning you will be liable to a fine or to imprisonment for a period not exceeding six months or both a fine and imprisonment, depending on the circumstances.
5. What other efforts are in place to contain the virus?
This nationwide lockdown has been accompanied by a public health-management programme - this has seen increased screening, testing, contact tracing of anybody who is suspected of having been in contact with the virus. Travel to and from high-risk areas has also been cancelled.
This means any South African arriving from a high-risk region will automatically be placed under quarantine for 14 days. Non-South Africans arriving on flights from high-risk countries will be turned back. See the official Coronavirus Covid-19 resource portal here.
6. What is government doing to help businesses
The government has put measures in place to ensure the supply and distribution of food and essential goods can continue during the lockdown. A number of economic interventions are being put in place including The Covid-19 Temporary Relief Benefit. Businesses can apply for assistance for up to three months including having a portion of salaries paid to workers. Business owners will however have to prove the impact of the lockdown to their businesses. To apply for the Covid-19 TERS Benefit from the UIF by sending an email to covid19ters@labour.gov.za where you will be prompted with further instructions.
Read: SA lockdown | Covid-19 funding measures put in place to buffer battered economy
7. What do tenants and landlords need to know?
All tenants who were due to move at the end of March would have had to do so before midnight Thursday 26 March, or otherwise they can only take occupation at the end of the nationwide lockdown, at midnight on Thursday, 16 April.
Read: What lockdown means for tenants and landlords
8. I can’t pay my home loan, what do I do?
Just before the lockdown took effect, the Reserve Bank decreased the prime lending rate by 1%. However, South Africa has just been booted to junk status by ratings agency Moody's - which means leading money will become more expensive further down the line.
If you're struggling during this time, have proactive discussions with banks and your other creditors to find out if there are any "Pay Holiday" options available to you. Make arrangements for shortfall payments instead of allowing them to default.
Read: Worried about debt? Don’t wait for government Covid-19 rescue before you act
9. Can I sell my home during lockdown?
The current lockdown bans non-essential interactions with clients, which means that selling a home will look different than in years past. The lockdown effectively prevents viewings with potential buyers and physically introducing them to properties.
For now, show houses will not be allowed until after the lockdown.
Read: What you should know about selling your home under lockdown
10. What happens after the 21-day lockdown?
That remains to be seen - for now government is focused on ensuring all the necessary measures are in place to curb this pandemic during the 21-day lockdown and will continue to monitor the situation and the rate of Covid-19 infections to determine the way forward.
