Is South Africa’s Digital Deeds Registry Advancing Innovation or Poses a Cybersecurity Risk?

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JEREMY MAGGS: South Africa’s deeds registry is undergoing significant digital transformation, aimed at enhancing efficiency and minimizing fraud. However, as the property industry transitions online, concerns regarding access, security, and implementation inevitably arise.

To delve deeper into this topic, we have Kagiso Mahlangu, a property law expert from the law firm CMS. Kagiso, to start, what are the primary risks of fraud in property transactions and how does digitization aim to mitigate these risks?

KAGISO MAHLANGU: Indeed, technology, while a strong enabler, also exposes us to cyber risks and security issues, particularly concerning property transactions and registrations that occur at the deeds registry office.

Given the sensitive nature of the information involved, it’s crucial that as we transition to a digital registration process, robust systems are established to safeguard that data.

A phased approach is essential, ensuring that all participants in the deeds office adopt best practices to secure the system’s usage.

Commonly, with digitization, measures like encryption and multifactor authentication can be employed. It’s vital to conduct regular security audits to protect information from being compromised.

JEREMY MAGGS: As you pointed out, sensitive data is at stake. Is there any indication from the Deeds Office regarding whether adequate cybersecurity measures are in place to address the concerns you’ve mentioned?

KAGISO MAHLANGU: The amendment act …

It empowers the chief registrar of deeds to issue directives that will shape the implementation of security measures.

Currently, we’re utilizing digitized systems within the Deeds Office, where tracking deeds and conducting deeds office searches is possible. However, the registrar’s directives will guide us on what further measures will be established to ensure the security of such sensitive information.

JEREMY MAGGS: There is already some progress towards digitization. Have any challenges emerged so far?

KAGISO MAHLANGU: Challenges are inevitable. Systems can occasionally go offline, which poses difficulties, as registrations are crucial to daily life and affect many individuals, as well as corporations.

While offline issues present obstacles, it shouldn’t deter us from embracing digitization.

JEREMY MAGGS: That’s a valid argument, but a concern remains that this system might disadvantage those lacking digital literacy or reliable internet access. Is this aspect being sufficiently addressed?

KAGISO MAHLANGU: Absolutely, and I believe it’s crucial that as we digitize, everyone—from the average person on the street to legal professionals—should be able to efficiently navigate the system without being excluded from the benefits of enhanced efficiency.

It’s imperative to provide necessary training and ensure the system is accessible for attorneys and users relying on it for registrations.

JEREMY MAGGS: To your knowledge, will this new system interface with the existing land reform initiatives, or will they function separately?

KAGISO MAHLANGU: We cannot confirm at this stage, as no directives have been issued on this matter yet. However, it would be both interesting and vital for the system to integrate, given the importance of land-related issues in South Africa.

JEREMY MAGGS: What about penalties for non-compliance with the new system? What is the legal field reporting?

KAGISO MAHLANGU: The legal profession is aware that a significant issue is determining who will have access to the system. It’s essential to ensure that only those authorized are permitted to use it.

There will be penalties for those who might attempt unauthorized access, including fines and possible imprisonment.

It’s vital that such measures are enforced consistently, as the digitized registration process requires that only legitimate users access the system to mitigate cyber risks associated with unauthorized access.

JEREMY MAGGS: How will access eligibility be determined?

KAGISO MAHLANGU: It will likely be limited to those who manage registrations.

Currently, attorneys, notaries, and conveyancers are authorized to handle registrations, and access should be restricted to these professions.

Individuals seeking information from the deeds office will need to engage with the system, but it’s crucial that professionals involved in registration processes are granted system access.

JEREMY MAGGS: Lastly, what is the anticipated timeline for full implementation, and are there potential obstacles that could delay it?

KAGISO MAHLANGU: The timeline remains uncertain. The amendment act includes provisions for a transitional phase, indicating that while we wait for directives from the chief registrar, we will continue using the current system.

This endeavor is monumental; our registration processes are highly rigorous. Thus, ensuring all functional, technical, and operational standards are met is critical—it’s not something that can be hurried.

Although we lack a precise timeline, it’s crucial for the chief registrar to proceed so we can all look forward to this progression.

JEREMY MAGGS: Thank you very much. That’s Kagiso Mahlangu, property law expert at CMS.

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