Fraud warning for South African homeowners

Property fraud involving forged signatures and illegal transfers is on the rise in South Africa, with experts urging homeowners to actively monitor ownership records and act quickly if suspicious activity occurs.

Following a surge in social media posts claiming irregular transfers, forged signatures, unexpected changes to title deeds, and even intimidation, Just Property CEO Paul Stevens said the trend is very frightening.

“My mother is on her way to the police station after someone transferred her property in Mulbarton illegally to a fake company,” one user wrote on X.

“They used her maiden name in the deed transfer, a fake signature, and a real ID number. My father went to the municipality to pay the rates for one of his East Rand properties and found that the property was no longer in his name.”

The user added that their mother lost her unit because of this, and the culprit, who started off as a tenant, stopped paying rent, electricity and water.

“When my mother went to the deeds office to get a few documents to prepare for court, the deed wasn’t in her name anymore,” they said.

Other users shared similar experiences, with one person writing that this happened to a friend of theirs, “and she’s still fighting to get her place back”.

Fortunately, Stevens explained that there are ways for homeowners to identify this type of fraud and take action.

“There are safeguards in place – the key is to stay informed, monitor your assets, and act immediately if something doesn’t look right,” he said.

He noted that homeowners can confirm ownership for a minimal fee without appointing an attorney for a formal investigation.

“The Deeds Office’s online portal, DeedsWEB, allows users to create a profile and run a property search using an ID number or erf details,” he said.

“While there is a prescribed fee for these searches, this is the most direct way to confirm that your name is still linked to your property.”

According to Stevens, if there is a bond on the property, the bank provides an additional layer of protection.

“Banks hold the original title deed and are alerted to changes, so you can contact your bond provider to verify your ownership status at no cost,” he said.

Municipal accounts also provide a quick indicator, he added, since rate accounts are tied to the registered owner.

“If the name on your bill changes unexpectedly or if you suddenly stop receiving accounts, that is a major red flag that needs action,” he said.

How homeowners can protect themselves

Some of the people writing about these incidents allege that they’re being intimidated or don’t know where to turn, Stevens said.

He encouraged these individuals to approach the formal legal channels established to protect, investigate, and provide advice.

“If you suspect foul play, one option is to open a case with the South African Police Service Commercial Crimes Unit and get a case (CAS) number,” he said.

“You then need to notify the Registrar of Deeds in writing with the CAS number and request that a ‘caveat’ or a note be placed against the property title. This will help prevent further transfers while the matter is under investigation.”

Referring to precedent-setting case law, Stevens said fraudulent transfers can be undone. Prominent cases include Botha NO v Leboko-Radebe (2022), where the High Court reaffirmed the principle that “fraud unravels all”.

Another prominent case, Nedbank Ltd v Mendelow (2013), made it clear that ownership cannot legally pass through a forged signature or a fraudulent process.

Stevens recommended that homeowners adopt four essential safeguards to protect their property –

• Annual checks: Run a search on the DeedsWEB portal once a year.
• Keep details current: Ensure contact details and the physical address are updated with the Deeds Office and the relevant municipality.
• Consult the conveyancer: Contact the attorney who handled your original transfer. They keep records and can often provide quick verification.
• Monitor vacant land: Those who own a vacant property or live far away should ask a trusted neighbour or a professional property manager to monitor the site for any unauthorised activity.

Stevens said he believes the property industry has to lead with facts rather than fear. “We can’t ignore these reports, but we also shouldn’t fuel panic,” he said.

“By giving homeowners clear information and practical steps to secure their biggest assets, we protect both the individual and the overall confidence in the South African property market.”