Sectional Titles Act: Amendments due to Electronic Deeds Registration and Recordal Systems Amendment Bill

Sectional Titles Act: Amendments due to Electronic Deeds Registration and Recordal Systems Amendment Bill logo

Summary:

The Electronic Deeds Registration and Recordal Systems (EDDRS) Amendment Bill (B27-2026) amends the Sectional Titles Act (Act 95 of 1986) and related land legislation to align property procedures with the Electronic Deeds Registration and Recordal Systems Act (Act 19 of 2019).


Article:

The Electronic Deeds Registration & Recordal Systems (EDDRS) Amendment Bill 2026 proposes, amongst others, application of the Sectional Titles Act to electronic deeds and related documents.

This specific gazetted Amendment Bill transitions South Africa towards a digital registry. It explicitly updates existing legislation to accommodate the preparation, lodgment, registration, and electronic execution of property transfers, including sectional title units and scheme plans. Refer to latest version of the EDRRS Amendment Bill at https://www.parliament.gov.za/storage/app/media/Bills/2026/B27-2026_Electronic_Deeds_Registration_and_Recordal_Systems_Amendment_Bill.pdf  

Key Amendments Pertaining to the Sectional Titles Act:

  • Electronic Submission & Processing: The Bill adapts processes for the preparation, lodgement, registration, and execution of sectional titles, deeds, documents, and sectional plans to run either manually or electronically via the electronic deeds registration and recordal system (e-DRS). 
  • The "Once Digital, Always Digital" Rule: If a sectional title property transaction is registered electronically, all subsequent transactions pertaining to that property must also be processed and registered electronically.
  • Mandatory Electronic Continuity: Once a sectional title transaction or property is registered electronically, all subsequent transactions pertaining to that property must also be registered electronically. 
  • Removal of Physical Lodgement Requirements: The Bill removes requirements for physical lodgement of original records where the relevant deed, bond, or sectional title is already stored electronically on the system. 
  • Replacement of Lost or Destroyed Electronic Title Deeds: It introduces a mechanism to replace a lost, destroyed, or incomplete sectional title deed stored on the electronic system with a certificate of registered title (following designated notice and objection procedures). 
  • Chief Registrar Directives: It empowers the Chief Registrar of Deeds to issue directives if functional requirements for electronic registration of subsequent transactions are not yet fully developed or operational for specific areas.

Click here to access detailed changes to the Sectional Titles Act and Regulations:

https://www.gazette.co.za/library/sectional-titles-act-95-of-1986 

Relevance to Auditors, Independent Reviewers & Accountants:

  • The Sectional Titles Amendment Act & Regulations is yet another piece of legislation that your clients must comply with, and which you must assess compliance with.  If they don’t comply with the relevant laws and regulations, you have certain reporting obligations in terms of NOCLAR (NOn-Compliance with Laws And Regulations) – this could include reporting to management, qualifying your audit opinion, reporting a Reportable Irregularity, etc.
  • As an auditor, accountant and independent reviewer, you need to consider the implications of these amendments on your relevant clients.

Relevance to Your clients:

  • Various entities have a duty to comply with the Sectional Titles Amendment Act & Regulations, otherwise they could be held liable.

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