Leasehold Presentation, Van Gendt Botha

Black Land Ownership was not allowed in white urban
areas during Apartheid years and only black occupation
rights were available in black urban areas.(townships)
1955 - 1968
30 – year leases on houses were obtainable
14 June 1968
Regulations Governing the Control and
Supervision of an Urban Black Residential Area
(GN R 1036)
Site Permits
Regulation 6
Regulation 7
Certificate of Occupation
Regulation 8
Possible to register rights of 99-year leasehold over
property in black urban areas.
After the introduction of the 99-year leasehold scheme
black people were able to obtain a registered real right to
the property as well.
The leasehold scheme did not prove to be successful –
reason being that it was viewed as an inferior right and
was not politically acceptable.
This resulted in the Black Communities Development
Act 1984 (Act no 4 of 1984) being amended in 1986 to
provide for full ownership rights for black people in
urban areas.
Requirements for Registration of
Survey land and Register General Plan
2. Open Township Register
(See Section 46(4) of the Deeds Registries Act No 47
of 1937). This is quite a lengthy process and took
years to complete. For a leasehold to be registered
only a surveyed and approved General Plan was
 Not possible to open Township Registers in all the
 This meant that for a long time only leasehold would
be registered.
 The Government tried to make leasehold more
attractive, but to no avail.
 (Perpetual 99-year leaseholds no “lease” payments etc)
On 1 January 1989 the Conversion of Certain Rights into
Leasehold or Ownership Act, 1988 (Act 81 of 1988) was
R1036 regulations were repealed by this act and the
Provinces were made responsible for the transfer of the
occupational rights granted by reg 6 and 8 permits into
leasehold or ownership.
With the promulgation of the ‘Conversion Act’ and the
consequent repeal of the R1036 Regulations, residential
permits (regulation 7) were abolished; however the
rights conferred by these permits were retained and
protected by statute.
TORPS was a project performed in
properties (Regulation 7) were
transferred to the rightful owners in
ownership or leasehold
ownership was not yet available.
A number of former rented houses
were regarded as FAMILY HOUSES
and, although these houses were
transferred in name of single
individuals these transfers were
restricting the rights of the owners.
 most comprehensive of all real rights
 giving the owner the right to use the property
 the right to income derived from the property
 the right to consume, dispose of and even destroy the
 It is unlimited in duration and is not subject to time
 It is an independent right and is not dependant on or
derived from any other right
 Leasehold is classified as a right inferior to ownership;
 However, leasehold rights have undergone certain
changes in South African law which makes it, except for
certain technical legal aspects, the same as ownership.
 The same rights that we find in the case of ownership
exists for leasehold with regard to:
 the registration of mortgage bonds
 Sale of the right of leasehold; or
 Testamentary; or
 Intestate succession of the right of leasehold.
 The ONE difference – that a right of leasehold was only
valid for a period of 99 years, was also abolished.
 As Township Registers were opened, it became
necessary to devise a way of converting the
leaseholds into ownership without incurring any
additional expenses.
 ULTRA (Upgrading of Land Tenure Rights Act 112 of
1991 states that when a Township Register is opened,
all Registered Leaseholds in that township
automatically convert to Ownership Rights.
Registrars of Deeds will endorse leaseholds as
ownership free of charge.

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