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Customary Marriage & Property Transactions in South Africa: What Every Estate Agent, Buyer & Seller Should Know Property transactions in South Africa can become legally complicated when customary marriages are involved — especially where the marital regime is not properly identified at the start of the process. For estate agents, conveyancers, buyers, and sellers, failing to understand the legal implications of a customary marriage can result in delayed transfers, invalid agreements, financial loss, and even collapsed property transactions. Understanding the Recognition of Customary Marriages Act (RCMA) and how it affects property ownership is therefore critical in every property deal. Are Customary Marriages Legally Valid? Yes. Under South African law, customary marriages are fully recognised and legally binding if customary law requirements have been followed. This may include: Lobola negotiations Family participation and consent Traditional customary processes Many people incorrectly assume that a customary marriage is only valid once registered at Home Affairs. This is not true. While registration is strongly recommended for administrative purposes, the failure to register a customary marriage does NOT invalidate the marriage in terms of the Recognition of Customary Marriages Act (RCMA). This creates a major risk in property transactions because a person may legally be married even if there is no formal Home Affairs registration available. The Default Marriage Regime: In Community of Property In most customary marriages, the parties are automatically married: IN COMMUNITY OF PROPERTY (ICOP) unless an Antenuptial Contract (ANC) was signed BEFORE the customary marriage took place. An ICOP marriage means: Both spouses jointly own the estate Both spouses have equal rights over immovable property Consent from both spouses is legally required for certain property transactions This includes: Selling a property Bond applications Mortgaging immovable property Offers to Purchase (OTPs) Why Both Spouses Must Sign One of the most important legal principles in South African property law is that spouses married in community of property cannot dispose of immovable property without the written consent of the other spouse. This requirement is contained in Section 15(2) of the Matrimonial Property Act. In practical terms, this means: The Offer to Purchase (OTP) must be signed by BOTH spouses. Even where: The title deed is only in one spouse’s name One spouse claims ownership The spouses are informally separated the absent spouse’s consent may still be legally required. Failure to obtain proper consent can place the entire transaction at risk. Yes. Under South African law, customary marriages are fully recognised and legally binding if customary law requirements have been followed. This may include: Lobola negotiations Family participation and consent Traditional customary processes Many people incorrectly assume that a customary marriage is only valid once registered at Home Affairs. This is not true. While registration is strongly recommended for administrative purposes, the failure to register a customary marriage does NOT invalidate the marriage in terms of the Recognition of Customary Marriages Act (RCMA). This creates a major risk in property transactions because a person may legally be married even if there is no formal Home Affairs registration available. The “Conversion Trap” Many People Miss A common misunderstanding occurs where parties: Enter into a customary marriage Later sign an ANC Then conclude a civil marriage In many cases, the ANC is invalid because it was signed AFTER the customary marriage already existed. This means the parties generally remain married IN COMMUNITY OF PROPERTY despite the later civil marriage. For estate agents and sellers, this can create serious legal and transactional complications if not identified early. What Can Go Wrong? Failing to properly verify marital status can result in: Invalid Property Sales An OTP may become legally void if proper spousal consent was not obtained. Delays at the Deeds Office Unregistered customary marriages often require: Affidavits Additional verification Marriage confirmations Proof of marital regime These delays can significantly slow down registration and transfer. Legal Disputes Disputes between spouses can halt transfers and lead to litigation. Loss of Commission Estate agents may lose commission where deals collapse due to non-compliance. Risk From Informal Separation Many couples live separately without legally divorcing. In law, they may still be married in community of property, meaning both signatures remain mandatory. Polygamous Customary Marriages Where a spouse enters into additional customary marriages, South African law generally requires a court-approved matrimonial property contract before the subsequent marriage. Failure to comply with these legal requirements can affect the matrimonial property regime and create further legal uncertainty in property transactions. A Practical Compliance Checklist for Estate Agents To reduce legal risk, estate agents should follow a proactive compliance process. 1. Ask the Correct Question Instead of simply asking:“Are you married?” Ask: “How are you married?” Clarify whether the marriage is: Civil Customary ANC In Community of Property Out of Community of Property 2. Verify ANC Dates If an ANC exists, confirm that it was signed BEFORE the customary marriage or lobola negotiations. 3. Request Supporting Documentation Always request: Marriage certificates ANC documentation Affidavits where marriages are unregistered 4. Obtain Double Signatures by Default Where uncertainty exists, the safest approach is to obtain signatures from both spouses on: Mandates Offers to Purchase FICA documentation Property-related agreements Final Thoughts Customary marriages play an important and legally recognised role in South African society and property law. However, misunderstandings around marital regimes and consent requirements continue to create major risks in property transactions. For estate agents, buyers, and sellers, early verification and proper legal guidance are essential to ensuring smooth and legally compliant property transfers. When in doubt, always consult with an experienced conveyancer before signing any property documentation. In most customary marriages, the parties are automatically married:  

Keeping Your Property Safe While You’re on Holiday Heading away for a well-deserved break? Taking a few simple precautions before you leave can go a long way in protecting your property and ensuring peace of mind while you are away. Secure Your Home Thoroughly Before departing, conduct a full walk-through of your property to ensure that all doors, windows, security gates, and garage doors are securely locked. Sliding doors can be reinforced with a wooden or metal bar placed inside the track for extra security. Notify your security company and trusted neighbours or family members of your travel plans and the duration of your absence. Provide emergency contact details and consider leaving a spare key with someone you trust should access to the property become necessary. Valuable items such as jewellery, cash, important documents, and small electronics should be stored in a secure safe or hidden safely out of view from windows or anyone passing by. Avoid posting travel plans or real-time location updates on social media until after you return home, as public posts can unintentionally alert opportunistic criminals that your home is vacant. Review Your Insurance Cover Before leaving, verify that your home and contents insurance policies are fully active and up to date. Ensure that premiums are paid and that you understand the extent of your cover in case of theft, water damage, or other unforeseen incidents while you are away. Tidy Up the Exterior Remove or store away garden tools, ladders, or loose items that could be used to gain entry to your home. Arrange for the post box to be emptied, and ensure the lawn or garden is maintained so the property does not appear unoccupied. Create a “Lived-In” Look Set timers on lights, radios, or televisions to switch on and off at different times throughout the day to simulate normal activity inside the house. Ask a neighbour or friend to collect mail or parcels to prevent items from piling up visibly. If possible, leave a vehicle parked in the driveway or arrange for a neighbour to use the space occasionally — a small detail that helps suggest the home is occupied. Ensure regular garden maintenance continues or make use of an automated irrigation system so your property remains neat and cared for during your absence. Utilities and Basic Maintenance Unplug non-essential electronic appliances, including televisions, toasters, and computers, to reduce the risk of electrical surges and potential fire hazards. Turn off the main water supply to prevent possible water damage caused by leaks or burst pipes while you are away. Switching off the geyser not only limits risk but also saves electricity. Remove all refuse and empty the fridge of perishables to avoid unpleasant odours or pest problems upon your return. Test your alarm system, motion sensors, and security cameras to ensure everything is functioning correctly and that battery backups are working properly in the event of power outages.

A Guide for Smart Real Estate Investment Investing in real estate has long been considered a wise financial move due to its status as a tangible asset that generally appreciates over time. However, to make the most of a real estate investment, it’s important to understand the property value factors that influence a property’s worth and how these can affect your return on investment. Primary Factors Influencing Property Value Several property value factors come into play when determining the true worth of a home. While many people equate property value with the price someone is willing to pay, it’s actually determined by a combination of factors, from location to physical attributes and market trends. Location Impact on Property Value One of the most significant property value factors is location, as it greatly influences the overall desirability of the property. The location impact on property value can be seen in several ways, including proximity to essential amenities like schools, parks, and public transportation. Other factors, such as scenic views, low crime rates, and signs of economic growth in the neighborhood, can also raise a property’s value. Importantly, location is one aspect of a property that cannot be changed, but it can certainly be leveraged to your advantage. Property Size and Layout Another key factor is the property size and layout. Larger properties tend to hold more value, but how the space is used also plays a crucial role. A well-designed layout that maximizes usable space and volume can significantly increase a home’s worth. Buyers are often willing to pay more for homes that offer efficient use of space alongside modern, open-concept designs. Condition and Age of the Property The condition and age of the property are other important property value factors. Homes that are well-maintained and free from major defects typically receive higher valuations. Regular maintenance is crucial for preserving the property value, as even small issues can lead to significant repairs later on, lowering the perceived worth. While older properties can possess historical charm, they may also require more frequent updates, which can affect their overall value. Market Conditions and Comparable Sales When evaluating a property’s worth, understanding real estate market trends and examining comparable sales in the area is essential. The market approach involves comparing similar properties that have recently been sold to gauge the current value. Economic factors, such as supply and demand, also influence these comparisons. For instance, high demand in an area with limited supply typically drives property values up, while an oversupply can lead to lower prices. Enhancing Property Value If you’re looking to increase your home’s value, knowing how to increase property value is key. Strategic renovations and upgrades can make a significant difference. However, it’s important to research your area’s ceiling price, which is the highest price buyers are willing to pay for properties in the local market. Simple improvements, like thorough cleaning, small repairs, or cosmetic changes such as replacing kitchen cabinet doors or upgrading bathroom fixtures, can make a home more attractive to potential buyers. Larger renovations, like converting a garage into a granny flat, can yield substantial returns if they align with real estate market trends and buyer expectations. Consulting a property professional with local market expertise can help you determine which upgrades will provide the best return on investment and effectively enhance property value. Buying Property Tips to Maximize Value When purchasing property, it’s crucial to assess all the factors that contribute to its value. Here are some practical buying property tips to help minimize risks and maximize your investment: By understanding the key property value factors and following these buying property tips, you can make informed decisions when investing in real estate. Whether you’re looking to enhance your property’s worth through strategic upgrades or purchasing your next home, careful consideration of these elements can help you maximize the potential of your real estate investment. Gerhard Lourens Incorporated | Conveyancer and Litigation Attorneys Nelspruit | 0137552080 | info@gerhardlourens.co.za

Resource (read the full article): 10 Essential Tips for First-Time Homebuyers in South Africa (wisemove.co.za) Buying your first home is an exciting milestone, but the associated administrative tasks can be overwhelming. Amidst a cost-of-living crisis, South Africans are feeling the pinch, but there is good news. Leading bond originators report a 4.2% increase in home loan applications in the second quarter of 2024, indicating a positive trend. Preparedness is key to navigating the property-purchasing process. If you’re a first-time buyer, here are some essential considerations before you sign on the dotted line. 1. Assess Your Credit Score and Budget Before diving into the home-buying process, evaluate your financial health. Review your debts, savings, and overall budget to determine what you can afford. Your credit score is crucial in securing a home loan, as it indicates your financial reliability to banks. Most banks offer free credit score checks, and you are entitled to one free credit report annually. If you lack a credit history, consider applying for a credit card or a vehicle loan, ensuring you meet repayment deadlines. 2. Save for a Deposit Saving for a deposit is a vital step in the home-buying journey. Banks usually require a substantial deposit to demonstrate your commitment. Typically, aim to save at least 10% of the purchase price. Remember, the cost of buying a home extends beyond the purchase price to include other hidden expenses. 3. Obtain a Pre-Approved Bond Securing a pre-approved bond before house hunting helps set realistic expectations. It strengthens your bargaining power and reassures the seller of your financial capability. You can apply for pre-approval through your bank or a bond originator. 4. Choose the Right Location Research your desired neighborhood thoroughly. Understand local market trends and ensure the sale price aligns with the area’s average. Consider the community’s suitability for your lifestyle, including transport options, schools, crime rates, and nearby amenities. Remember, while you can change aspects of a property, you cannot change its location. 5. Keep House Plans Ready Most banks require house plans before approving a mortgage. Ensure that the approved plans match the property’s structure, including separate structures like garages and cottages. This step is crucial, especially if you are buying a home off-plan, as it helps banks assess the property’s value accurately. 6. Hire a Trustworthy Agent A knowledgeable real estate agent can be invaluable. They schedule viewings, negotiate on your behalf, and help you understand the offer-to-purchase agreement. Choose an agent you trust, who has your best interests at heart. 7. Insist on a Home Inspection Before finalizing your purchase, have a professional inspect the home for defects. In South African real estate, sale agreements often include a ‘voetstoots’ clause, where the buyer accepts the property as-is. However, both the buyer and seller must complete a disclosure form listing all identified defects, protecting against disputes over hidden defects. 8. Account for Closing and Hidden Costs Buying a home involves several hidden costs, such as bond registration, property transfer fees, levies, and rates and taxes. Property transfer fees, payable to SARS within six months of transfer, can be substantial. If the seller is VAT registered, you will pay VAT instead of transfer duty. 9. Consider Mortgage Terms and Resale Value Opting for a shorter mortgage term can reduce overall costs, despite higher monthly payments. Building equity is a significant advantage of homeownership. Additionally, consider the future resale value of your property and look for features that will appeal to future buyers. 10. Prepare for Bidding Wars In a competitive market, be prepared for bidding wars. Stay calm, stick to your budget, and be ready to compromise. Flexibility is crucial in navigating the unpredictable home-buying process. Final Thoughts If you’re ready to take the plunge into homeownership, now is the time to act. By following these tips and staying prepared, you can confidently embark on your journey to buying your first home. Gerhard Lourens Incorporated | Conveyancer and Litigation Attorneys Nelspruit | 0137552080 | info@gerhardlourens.co.za

Resource: Advice: How to build a property portfolio – Market News, News (property24.com) Although it may be a daunting goal, Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa says that it is achievable for those who put in the work to develop a plan and have the tenacity to stick to it. “Building a property portfolio will take careful planning and strategic financial management. For most, it will most likely also require some sacrifices in lifestyle and some diligent saving habits. If you are serious about turning this dream into a reality, then set up appointments with industry experts, including a financial planner and a real estate professional, to start working out an action plan that you can follow,” Goslett recommends.   Craig Mott, Business Development Manager for the Rawson Property Group, also shares the top 4 techniques used to build these high-performance portfolios that deliver mogul-worthy returns. Goslett says, although the path towards achieving this goal will look different for each individual, RE/MAX of Southern Africa shares a few golden nuggets of wisdom that could help any young property investor start on their journey towards becoming a property mogul… Read the FULL article on Property24 Advice: How to build a property portfolio – Market News, News (property24.com) Contact Gerhard Lourens Incorporated for expert legal advice and assistance with all your property transaction needs. Building a property portfolio offers several benefits, including: 1. Income Generation 2. Capital Appreciation 3. Diversification 4. Leverage 5. Tax Benefits 6. Inflation Hedge 7. Control Over Investments 8. Wealth Building 9. Opportunities for Forced Appreciation 10. Retirement Planning 11. Equity Growth By strategically building and managing a property portfolio, investors can achieve significant financial benefits, providing both immediate income and long-term wealth growth. Gerhard Lourens Incorporated | Conveyancer and Litigation Attorneys Nelspruit | 0137552080 • info@gerhardlourens.co.za