When selling any type of property in South Africa, getting a valuation done is always a good idea.
In South Africa, property is classified either as immovable property or movable property.
Immovable property in South Africa
Ownership of immovable property gets registered in the deeds office, and typically involves land and building ownership. You can outright own a property, or you may hold certain registered rights over another person’s property.
Types of Property Owned in South Africa
Owned property could include Residential, Commercial, Industrial, Agricultural and Vacant properties. These are registered as full title stands, sectional title units, farms, or agricultural holdings. The deeds registry has a register of all these properties that are in existence, and records who owns each of these properties. Ownership is regulated by the Deeds Registries Act, which requires that ownership and ownership transfer be recorded in title deeds in the deeds registry. The owner typically has the right to use, sell or lease these types of property as they see fit, subject to any laws or regulations as well as restrictions recorded in the title deed
Rights over other people’s property in South Africa
Rights over other people’s property could include servitudes, usufruct and usus rights.
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- Servitudes, which are registered in the deeds registry and are legal rights that allow a person or an owner of another property to use someone else’s property or parts thereof for a specific purpose. Praedial servitudes are registered to the benefit of a specific property, and typically continue existing even if the owner of the property that benefits changes. Personal servitudes are registered to the benefit of a specific person, and typically cease to exist when the person passes away.
- Usufruct is a right to use and benefit from the income of someone else’s property for a period of time, or until a certain event occurs. Usufructs can be created by agreement between the owner of the property and the person who will be using it, and are registered in the deeds registry to ensure that they are legally enforceable.
- Usus is a right to use and occupy someone else’s property, such as a right to live in someone else’s house. This type of right is popular for retirement villages, where occupant purchase use rights rather than full ownership.
Movable property in South Africa
Movable property on the other hand refers to assets that can be moved or transferred from one place to another. It does not get registered in the deeds registry.
In South Africa, movable property includes:
- Art: This includes paintings, sculptures, and other forms of art.
- Vehicles: This includes cars, trucks, and other vehicles.
- Plant and equipment: This refers to machinery and equipment used in agriculture, manufacturing, construction and other industries.
- Intellectual property: This includes intangible assets such as patents, trademarks, and copyrights.
- Licenses: This refers to a legal agreement that allows someone to use a specific product, patent or business methodology.
- Patents: This refers to a legal right granted to the inventor of a new invention – that prevents others from making, using, or selling the invention without permission.
