The Eastern Cape will mint 7000 new homeowners in the coming months as the government finally hands over title deeds to RDP beneficiaries.Property agents are salivating at the prospect of potential new stock that could come onto the market.
The Eastern Cape department of human settlements announced it would issue thousands of title deeds to residents staying in government-subsidised houses before March.
Human settlements spokesman Lwandile Sicwetsha said the department was prioritising the issuing of title deeds so beneficiaries could legally own their properties.
“The department will give away 7000 title deeds to correct beneficiaries of government’s low-cost subsidy programme by March.
“The previously disadvantaged families who were deprived of the right to home ownership by the apartheid regime, will also benefit.”
A beneficiary has to live in the RDP house for eight years to qualify before receiving a title deed.
Sicwetsha said human settlements MEC Helen Sauls-August in July last year issued 802 title deeds to Barkly East residents and in 2014, 1000 title deeds were handed to residents of Indwe.
“When a house is complete and allocated to the correct beneficiary, a title deed becomes the next and final step in the process of providing shelter to a beneficiary.
“The title deed provides security of tenure. Government took a decision in 2009 that the issue of title deeds needs to be fast-tracked,” Sicwetsha said.
East London estate agent Sabelo Capa of Sabelo Capa Properties, which deals mainly in houses at the lower end of the market, said the issuing of title deeds could see a boost in housing stock.
“It’s possible we will see a number of RDP houses on the market.
“Remember those who don’t qualify for expensive bonds, will go for these houses and once the demand is there, banks will open up for such a market,” Capa said.
Sicwetsha said it was possible for homeowners to sell houses as it could open up economic opportunities for beneficiaries.
“But we discourage our beneficiaries to take the title deeds to loan sharks. The house with a title deed becomes an economic asset, but beneficiaries must use it wisely and make sure they don’t lose their homes and end up in shacks again.”
Estate Agent expert Lerato Zote said the move was good and would see a number of people classed as not qualifying for bonds getting into the market
“We will see an influx of these people, the so-called general workers or low- to middle-class earners, coming into the market and buying these houses.
“Once these title deeds are given to beneficiaries, they can do anything with their houses and it will also boost their economy in society,” Zote said.
Lance Gouws of Harcourts Properties in East London said a title deed was important when selling a house.
“No matter what alterations have been made, the seller must have his title deed in order to sell.
“The Department of Human Settlements also has to authorise any sale of an RDP house and transfer cannot be effected without this approval,” Gouws said.
Director at Free Market Foundation Eustace Davie said beneficiaries should not have to wait years before being issued a title deed by the government.
“We are currently fighting for people who are still struggling to get their title deeds many years after they occupied their houses.
“We estimate that there are between five and seven million people who are struggling to get these very important legal documents.
“The move by the department is the right one, but if people are getting their title deeds five years before the standard eight years, what will happen to the three years that is left? Will they be allowed to sell their houses?” Davie asked.
Buffalo City Metro (BCM) residents, who have lived in RDP houses for as long as 12 years, said they had waited for years for official papers to show they were the rightful owners of their homes.
It is expected that in the metro, close to 900 beneficiaries would receive their title deeds.
“There are 892 title deeds due to be given to correct beneficiaries in Amalinda, Airport phase 1 and 2 and Reeston areas.
“We appeal to the beneficiaries to exercise patience as the department needs to verify and ensure that rightful beneficiaries are the actual occupants of the houses,” Sicwetsha said.
A blind 82-year-old grandmother from Nompumelelo township, Nowinala Jokoca, said she did not want to die without having her home registered in her name.
“That title deed will prove that I am the owner of the house. Without it I won’t know what will happen to it when I die. There are crooks out there,” Jokoca said.
Evelyn Mali from the same township said she feared her home could be a pile of rubble by the time she received a title deed.
She moved into her new house in 2005, but said it was already falling apart.
“I am struggling to fix it as I can’t use it as a collateral to get a loan to fix it,” Mali said.
Jongi Bacela said he wanted to move to a rural village, but the title deed was delaying him.
“I can sell it and move or rent it out to people,” Bacela said.
7 000 will own their homes at long last
Property agents are salivating at the prospect of potential new stock that could come onto the market.
The Eastern Cape department of human settlements announced it would issue thousands of title deeds to residents staying in government-subsidised houses before March.
Human settlements spokesman Lwandile Sicwetsha said the department was prioritising the issuing of title deeds so beneficiaries could legally own their properties.
“The department will give away 7000 title deeds to correct beneficiaries of government’s low-cost subsidy programme by March.
“The previously disadvantaged families who were deprived of the right to home ownership by the apartheid regime, will also benefit.”
A beneficiary has to live in the RDP house for eight years to qualify before receiving a title deed.
Sicwetsha said human settlements MEC Helen Sauls-August in July last year issued 802 title deeds to Barkly East residents and in 2014, 1000 title deeds were handed to residents of Indwe.
“When a house is complete and allocated to the correct beneficiary, a title deed becomes the next and final step in the process of providing shelter to a beneficiary.
“The title deed provides security of tenure. Government took a decision in 2009 that the issue of title deeds needs to be fast-tracked,” Sicwetsha said.
East London estate agent Sabelo Capa of Sabelo Capa Properties, which deals mainly in houses at the lower end of the market, said the issuing of title deeds could see a boost in housing stock.
“It’s possible we will see a number of RDP houses on the market.
“Remember those who don’t qualify for expensive bonds, will go for these houses and once the demand is there, banks will open up for such a market,” Capa said.
Sicwetsha said it was possible for homeowners to sell houses as it could open up economic opportunities for beneficiaries.
“But we discourage our beneficiaries to take the title deeds to loan sharks. The house with a title deed becomes an economic asset, but beneficiaries must use it wisely and make sure they don’t lose their homes and end up in shacks again.”
Estate Agent expert Lerato Zote said the move was good and would see a number of people classed as not qualifying for bonds getting into the market
“We will see an influx of these people, the so-called general workers or low- to middle-class earners, coming into the market and buying these houses.
“Once these title deeds are given to beneficiaries, they can do anything with their houses and it will also boost their economy in society,” Zote said.
Lance Gouws of Harcourts Properties in East London said a title deed was important when selling a house.
“No matter what alterations have been made, the seller must have his title deed in order to sell.
“The Department of Human Settlements also has to authorise any sale of an RDP house and transfer cannot be effected without this approval,” Gouws said.
Director at Free Market Foundation Eustace Davie said beneficiaries should not have to wait years before being issued a title deed by the government.
“We are currently fighting for people who are still struggling to get their title deeds many years after they occupied their houses.
“We estimate that there are between five and seven million people who are struggling to get these very important legal documents.
“The move by the department is the right one, but if people are getting their title deeds five years before the standard eight years, what will happen to the three years that is left? Will they be allowed to sell their houses?” Davie asked.
Buffalo City Metro (BCM) residents, who have lived in RDP houses for as long as 12 years, said they had waited for years for official papers to show they were the rightful owners of their homes.
It is expected that in the metro, close to 900 beneficiaries would receive their title deeds.
“There are 892 title deeds due to be given to correct beneficiaries in Amalinda, Airport phase 1 and 2 and Reeston areas.
“We appeal to the beneficiaries to exercise patience as the department needs to verify and ensure that rightful beneficiaries are the actual occupants of the houses,” Sicwetsha said.
A blind 82-year-old grandmother from Nompumelelo township, Nowinala Jokoca, said she did not want to die without having her home registered in her name.
“That title deed will prove that I am the owner of the house. Without it I won’t know what will happen to it when I die. There are crooks out there,” Jokoca said.
Evelyn Mali from the same township said she feared her home could be a pile of rubble by the time she received a title deed.
She moved into her new house in 2005, but said it was already falling apart.
“I am struggling to fix it as I can’t use it as a collateral to get a loan to fix it,” Mali said.
Jongi Bacela said he wanted to move to a rural village, but the title deed was delaying him.
“I can sell it and move or rent it out to people,” Bacela said.
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