Fill a lounge at uMhlanga’s dazzling Radisson Blu with KZN’s top conveyancing attorneys and noise levels rise and colleagues connect. KZN INVEST hosted the gathering where Anne Schauffer spoke to professionals dealing with rising interest rates, and the aftermath of Covid, riots and floods.
GRAEME PHILLIPS
Garlicke & Bousfield
Graeme Phillips is a director at Garlicke & Bousfield where he’s practiced for 25 years. He describes the current property market as difficult: “And we don’t anticipate it easing in the next 18 to 24 months. But we do see activity in industrial property, particularly where platformed industrial land is available in the north.” He’s also seeing the sale of well-priced residential sectional title units in uMhlanga from developers, as very positive.
Phillips says the registration of property transfers is being delayed because of government department inefficiencies: “Particularly rates clearance certificates by local authorities for ‘new’ properties. On occasion, we’ve waited up to six months for rates figures, which delays transfers, compellingconveyancing firms to spend time and money following up with the various departments to expedite the process.” While he welcomes the online processes adopted by some local authorities and SARS, he feels it inhibits the resolution of the more complex matters that require interaction.
“Business is cumbersome and more difficult, due to the FICA obligations and responsibilities imposed on attorneys. We recognise the need for legislation to counter money laundering, but the process could be a lot simpler and less onerous.”
FAWZIA KHAN
Fawzia Khan & Associates
Fawzia Khan of Fawzia Khan & Associates, is buoyed by the resilience of South Africans and the spirit of ubuntu which shone through what she describes as seismic challenges KZN endured over the past few years. “The property market has managed to remain somewhat stable, and although we hear predictions of market growth slowing, it’s remained steady, even lively. We continue to see first-time homeowners looking at affordable housing, and young professionals raring to start their property investment portfolios – they’re buying. It’s great to see developments in the commercial/retail and residential housing space taking root. We’re thrilled to be part of the professional team of a multi-million rand luxury residential sectional title development in Durban North.” In a buyer’s market, she advises buyers to get in now.
Khan is keen to reduce paper use: “I’d love to see the legal profession – including the courts and deeds registries – become fully digitised, to spare our forests, have less wastage and need to recycle.” She is encouraged by industry strides to embrace technology. Thirty years in practice, she is honoured to be part of the Legal Practice Council’s group of examiners of candidate conveyancers and notaries.
DOUGLAS TATHAM
Norton Rose Fulbright
Douglas Tatham of Norton Rose Fulbright, says his firm’s focus is primarily commercial property work, interacting with banks and developers: “The activities of our clients indicate there’s still strong movement in the KZN property market, visible in the take-up of sales in new residential property developments, the launch of new residential and industrial/commercial developments, and ongoing commercial lending for property acquisitions and developments.”
Responding to his wish list for the industry, his dream – which he admits is likely to remain just that because regulatory and transactional risks seem to grow by the year – is to automate what he describes as “an incredibly labour-intensive conveyancing process, into a fully integrated process where answers from role players come in instantly.”
Nine years at Norton Rose Fulbright, Tatham has spent 30 years competing in the Dusi, so when he’s not at the office, he’s keen to be involved in cleaning up our KZN waters. He stresses that taking up arms regarding water quality is not simply about paddling – it’s something which affects – and will affect – everyone in the province.
ANITA GOUNDEN
Anita Gounden Attorneys
Anita Gounden of Anita Gounden Attorneys & Conveyancers considers the current property market to be extremely volatile, fuelled by the rising interest rates, high inflation, high unemployment levels and poverty at unprecedented highs. She has seen an increase in the uptake of transfers, with people looking for lifestyle changes and an improved quality of life, but she does believe the repercussions of the negative impact on the economy, will be more visible in a few months: “Interest rates and the downturn in the economy will result in a decrease in property transfers. I foresee numerous foreclosures by the banks as pressure builds on homeowners, and banks will sit with a book of bad debts as homeowners’ default on their bonds. This is turn will reduce the market value of properties.” She believes it is going to be more viable economically to rent than buy.
Gounden’s advice to others in her industry? “Diversify your service offerings – attorneys can no longer rely on their specialisations. To survive in a world of change – as is happening in the property market – one has to reinvent oneself.”
SIMPHIWE MAPHUMULO
Garlicke & Bousfield
Simphiwe Maphumulo has spent 15 years at Garlicke & Bousfield, and supervises a team in the Property and Conveyancing department. He concurs with Phillips. If interest rates continue their upward trajectory, the current, albeit slight, downcycle will continue for the next 18 to 24 months: “But there are pockets of opportunity and, with the right product, a number of our clients are very active in the market.”
Talking transfer trends, Maphumulo says: “In light of the burden of increased government legislation, and the inefficiencies with local government departments (particularly rates clearance certificates), transfer of property is generally taking longer to register. Although the turnaround time in the deeds registry has improved somewhat, Covid and the failing water supply to the deeds registry has meant its closure on numerous occasions, which delays matters even further.”
Maphumulo believes a general upskilling and up-staffing of the various departments of the local authority and SARS would make the work of the legal profession working in the property arena, a great deal easier.
ALLISON SCHOEMAN
AMS Attorneys Inc
Allison Schoeman is the managing director and shareholder of AMS Attorneys Inc, and has been involved in the conveyancing industry for 22 years. She explains that conveyancing is a challenging environment. Her ability to foresee and solve problems swiftly has enabled her to open her own practice and operate AMS Attorneys Inc for the last five years. She notes that it is not always easy to run your own business during the tough times and especially when the levels of corruption is at an all-time high: “The levels of corruption significantly impact service delivery which in turn impact the property registration times.
She describes the current market conditions as “complicated” due to various factors – the war between Ukraine and Russia, rising fuel costs, inflation and interest rate hikes, but more significantly the corruption levels. A further challenge is the dissemination of information by clients: “Information on the internet is often misinterpreted.” However, despite these challenges she remains passionate about her profession and seeks to make a difference where she can: “I have built everything on my own, so it is important to me to share with others that everything is possible if you work hard enough to achieve it.’’
REDVERS LEE
Venns Attorneys
Redvers Lee of Venns Attorneys began his career 40 years ago at Venns … and he’s still there, now as chairman of this 120-strong firm. He has a good relationship with the deeds office and a great understanding of its processes.
In his view, the market is fairly flat, and the rate increases have not only affected affordability levels, but are causing uncertainty and indecision: “The July looting affected the expansion of some businesses. The loss of tenants in commercial/industrial buildings – and the reduction of space – all affect this sector. Those who are currently cash-flush are active in the commercial/industrial market.”
The negative impacts on the conveyancing process, he said, were: “Constant requests for discounted pricing in conveyancing fees, time lags with the issuing of rate certificates, and delays caused by infrastructure faults – electricity and water – cause government departments to close at short notice which reduces capacity. SARS strikes, too, have impacted the obtaining of transfer duty receipts, and caused delays in transfer turnaround times.”
He considers it important to increase the quality and frequency of training to all in the property industry: “It’ll create a better understanding of how to structure deals and the importance thereof.”
MARGARET BIGBY
Woodhead Bigby Attorneys
Margaret Bigby of Woodhead Bigby Attorneys is a director and shareholder, having spent 11 years in the profession. She’s reticent about billing the firm as a family one, but that family ethos is inescapable: “My great-grandfather was the original Bigby lawyer, followed by my grandfather and my father. My brother James, dad Scott and myself have complementary skills which make for a really unique and efficient professional collaboration.”
Margaret says they deal mainly with business, commercial, corporate and higher-end residential property transactions: “Generally the market has been fairly flat, which has a lot to do with the various external pressures on market sentiment, and the tighter lending criteria being applied by banks.” She adds, “Those tighter criteria mean sellers – commercial and residential – have to confront possible downward adjustments to their asking prices. Lending is still happening of course, but at lower thresholds and with tighter terms especially with escalating interest rates. This forces sellers to reassess their prices.”
Bigby is confident about the firm’s ability to develop and adapt to changing circumstances: “We’re working off a solid foundation, where adaptation to change comes naturally to us and our business.”
BILAL OSMAN
J Leslie Smith & Company Inc
Bilal Osman is a director at J Leslie Smith & Co Inc in Pietermaritzburg. He feels the market has slowed a little, specifically properties exceeding R1,5-million: “It’s evident from the types of instructions we’re receiving, and interaction with banks and property practitioners. It’s the interest rate increase. Sellers are demanding their prices and playing the long game hoping the economy recovers post-Covid and July riots, which could see a growing appetite for property.”
He also feels there’s a modicum of scepticism, with South Africans waiting to see how the economy, political and social climate plays out. He sees optimism among stakeholders that the market could pick up in the last quarter of 2022.
“Transfers have slowed down, but we see more movement in the R800 000 to R1,2-million residential market. The high end over R2,5-million has stalled as they are looking at investments like coastal lifestyle estates.
“Regarding commercial property, companies seem to be restructuring their businesses. Those restarting or renewing, are thinking long-term by moving property between entities to ensure security of assets and tax efficiency. I think that’s positive, as it shows businesses are looking long-term and showing resilience, which is what we need.”
SAIJAL PALE
AMC Hunter INC
Saijal Pale of AMC Hunter INC became a director last year. Since the start of 2022, she’s seen a dip in property market sales, which she attributes largely to interest rate hikes and rising inflation: “But, we have seen an uptick in properties purchased in gated estates and off-plan developments, which reflects the public’s increased concerns around security.”
Pale has a vision for the industry’s future which she believes would make it far more efficient, cost-effective and environmentally friendly: “I’d reduce the company’s carbon footprint by making the profession more technologically advanced, especially with response to mortgage bond registrations and the deeds office processes. This will require banks to change their system to enable clients to sign documents electronically and remotely.
“Furthermore,” she adds, “being able to submit documents to the deeds office for lodgement online, would not only alter our business, but the entire conveyancing fraternity.”
MPHO TITUS
Titus Attorneys Inc
Mpho Titus opened the doors to Titus Attorneys Inc at Westway Office Park in Westville in March this year. He’s watching property trends with interest: “Due to the new way of working with hybrid work structures, more people are leaving city hubs and purchasing in smaller towns, as well as buying more spacious properties to accommodate the work-from-home model.”
He commented on the general expectation that the luxury property market would suffer in the unstable economy – it’s not his experience: “I’ve seen an increase in activity there. There’s also a rising demand for off-grid living, which has forced developers to pay more attention to energy efficiency and green living.”
Titus feels the industry needs barriers removed: “It needs to happen so a greater number of small- and
medium-size conveyancing firms can access opportunities within the property market.”
YADHYA BISSASSER
Woodhead Bigby Attorneys
Yadhya Bissasser is a director and shareholder at Woodhead Bigby Attorneys, mainly handling business and commercial lending transactions, mortgage registrations and securitisation. She has been in the profession for 28 years.
She begins her day with a beach walk – always in the wet sand, she stresses – and it’s that which keeps her grounded and positive: “It’s not all doom and gloom out there,” she says. “The current economic trough won’t last forever – we’re expecting improvements from the first quarter of 2023.”
Regarding sales in the current market, “prices are lower than sellers anticipate, which is expected when loan finance is tougher to obtain. Challenges within municipalities retards the speed of registration of deeds, and therefore the flow of money … added to which, there is far more background compliance, due diligence and form-filling to make progress. Essentially, each transaction requires far more work than before.” She adds however, “We’re fortunate to have a business that has developed and adapted to change over the years – we’re confident in ourselves, our diverse team of professionals and our efficiencies to continue in practice for many years to come.”
KARIEN HUNTER
AMC Hunter INC
Karien Hunter of AMC Hunter INC, celebrating its 35 years in business this year, insists that its success is a team thing. She laughs, “We’re older than Facebook!”
The practice has three branches which she oversees – Ballito, Berea, and Amanzimtoti – and Hunter says she’s working with the best team she’s ever had. She loves the quote: None of us acting alone can achieve success, and she’s a firm believer that that mantra has played out perfectly in her practice.
Looking at the property market, she sees the recent increase in interest rates as returning the market to “normal”: “The lower end of the market – under R1,5-million – remains active, and sectional title and estates are selling well.
“If I could wave a magic wand, I’d love to see improved efficiencies at local authority level with the issue of rates clearance certificates.”
THEO VAN RENSBURG
Kloppers Durban Inc
Theo van Rensburg of Kloppers Durban Inc has been practicing for 20 years. At one point, it was a toss-up … law or rugby coaching. He’d played provincially and internationally before entering the coaching arena, but chose family life over that of coaching.
“Consumers are under pressure,” he says, “causing a slow-down in activity over the past few months – June to August are generally slower months. It might be slightly slower than the norm, but coming off a record-breaking period post-Covid, I see it as the market returning to normality.”
Property practitioners report a shortage of stock, he says, but he envisages that situation changing soon as households come under pressure with the increased cost of living: “It seems as if current buyers who’re committing to offers, are ones who’ve done extensive research. Buyers are looking extensively at available properties, and once committed to a property as serious buyers, their signed offers become conclusive sales. This has resulted in a number of our recent transfers being registered in record time.”
Van Rensburg adds, “A good team and solid business is built over time. Outcomes change because we change the way we do things, not by waving a magic wand.”
CHERISE KAELA JEWNARAIN
AMS Attorneys Inc
Cherise Kaela Jewnarain joined AMS Attorneys Inc as an attorney in 2019, and became a notary in 2020. Her father is also an attorney, so they’ve kept law in the family.
She has pointed out the instability in the property market primarily caused by Covid-19, with South Africa’s annual inflation being the highest level since the global financial crisis. This coupled with increased fuel costs and the recent flooding, the volatility of the property market does not come as a surprise. However, she does see positive signs of the market picking up and becoming stable once again.
She expressed her frustrations regarding certain types of transactions, namely the areas of deceased estate transfers and distressed transfers, which causes delays and affects the turnaround times of registration. What makes her despondent about the profession are the “underhanded dealings” and the lack of fair and equal practices.
She feels attorneys and law firms should rely more on proper information technology processes – to conserve paper and reduce our carbon footprint. Her final words: “In a world where there is mediocracy choose to be extraordinary!”