EMASWATI NOW FREE TO BUY SECTIONAL PROPERTY

MBABANE – A new era has dawned in the property market. Senate has passed the Sectional Titles Regulations of 2019, paving way for the ordinary liSwati to own separate, single sections of buildings and shared ownership of common property.
The passing of the regulations will also fully operationalise the Sectional Titles Act of 2003.

Heralding the latest development, which has been eagerly awaited by emaSwati, the Ministry of Housing and Urban Development said the Act and the regulations would benefit the ordinary person as it would stimulate the housing market.
The ministry said this was a huge leap in providing an alternative to home ownership in Eswatini because emaSwati are now eligible to acquire ownership of sections of buildings.
It is hoped that this will make housing accessible to a larger percentage of the population, especially on title deed land properties in the gazetted 13 urban centres in the country.

SUBDIVISION OF BUILDINGS

“This will be possible through allowing the subdivision of a building or buildings and the land upon which they are situated into single and common property,” said Lungelo Nkambule, the ministry’s Communications Officer.
She described this as a major shift from the present set-up where a developer only rents out units to different tenants for life.
“Sectional titles will allow any developer who wishes to sell his or her building as individual units to do so if they meet the necessary requirements under the Act. Sectional title enables that a single apartment unit is purchased with full ownership rights,” Nkambule said.

She stated that each unit can be bonded by a financial institution hence making the acquisition of the property easier.
Through the introduction of sectional titles, Nkambule said the ministry was opening up the housing market to a wide segment of the population that is presently precluded from fully partaking in the real estate industry, in particular, the low and middle income groups.

Potential or interested buyers of sectional title property, who are bona fide emaSwati, will be happy to know that ownership will still be superseded by the provisions of the kingdom’s constitution and other laws that regulate the ownership of property in the country.

EXISTING UNITS

“Therefore, properties in sectional title schemes shall be sold to people who are citizens of Eswatini. Section 11 of the Act stipulates the sale of existing units by developers, first preference has to be given to a tenant who is a liSwati national to acquire the unit they presently occupy,” Nkambule said.

There have always been concerns that the foreign nationals who are mostly tenants of such properties would also be given a chance to purchase the units once the regulations are in place.
According to Nkambule, in the event that the liSwati national who is a tenant fails to acquire the unit, second preference should be given to another liSwati who is not a tenant.
“Of paramount importance is that the piece of legislation advocates for the empowerment of emaSwati nationals in the acquisition of sectional title units. However, the Ministry of Housing and Urban Development does not prescribe who a liSwati national is as such is a prerogative of the Ministry of Home Affairs,” she stated.

Potential buyers of sectional title deed property should have the means to purchase the individual units (affordability), depending on the price of same.
Nkambule, however, highlighted that since the real estate industry was not regulated in the country but market forces of willing buyer willing seller prevail, it becomes difficult for the ministry to estimate how much each unit or section will cost since property prices are informed by a number of variables.

LOCATION OF PROPERTY

“These, among others, include location of the property; size of the unit or section; availability of amenities such as healthcare facilities, education facilities, shopping centres etcetera,” she said.
Explaining the process to be followed by developers wanting to sell their properties in terms of the Act, she said they should submit an application to that effect.
She said the Act and regulations have a number of processes in place that each and every developer needed to familiarise themselves with.

“These include the engagement of a qualified architect or surveyor in terms of the requirements of the Act and regulations; the building should also meet the requirements of the Building and Housing Act; public health and engineering requirements should also be adhered to since developers will be expected to sell habitable units, sections and or buildings; first preference given to emaSwati nationals who are tenants to acquire the units, etcetera,” she stated.

REGULATIONS BOARD

 Now that the Regulations are in place, Nkambule said to operationalise the sectional titles in the country, the ministry has to put in place the Sectional Titles Examination Committee (STEC) to work with the Sectional Titles Regulations Board (STRB).
The STRB is already in place having been appointed in 2018 for a three-year term and its members include Registrar of Deeds Thabiso Masina (chairman), Principal Secretary Clifford Mamba, Director of Housing and Human Settlements Bhekithemba Matsebula and lawyer Mabandla Manzini, who is also acting judge of the Supreme Court.

Nkambule said STEC would be in place by June 2020 or early July 2020 and once it has been gazetted, its main task would be to examine the respective professionals willing to participate in the preparation of draft sectional plans in accordance with Section 6(2) of the Act.

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