W hat many property owners, can become when a property is owned by an individual and the owner passes away. Inheriting a property sounds straight- forward until you find yourself entangled in delays at the Master’s Office, mortgage bond complications, municipal clearance backlogs or disagreements between heirs. In practice, property is often the asset that causes the most delays and disputes in deceased estates. investors and even heirs under- estimate is how complicated things
As property lawyers and estate specialists, we see this intersection every day. In this article, we have set out the most common challenges and how proper planning and clear legal guidance can help smooth the process when property becomes a legacy. The legal framework – what happens to property on death When someone passes away, their assets, including immovable property, fall into their estate. The estate is frozen until an executor is appointed by the Master of
Intestate Succession Act dictates who inherits. This may seem obvious and simple in theory, but in practice, the transfer of property through an estate is rarely seamless. The practical realities for heirs and executors 1. Delays and bottlenecks – The Master’s Office is currently facing well- publicised backlogs. Without a letter of executorship, nothing can be done – not even paying rates or applying for clearance certificates. Add to that municipal delays in issuing rates clearance figures, and heirs often find themselves waiting months before any progress can be made. 2. Mortgages and debt – If the deceased owner had a home loan, the bond remains binding. The bank will expect instalments to continue and, in most cases, call up the full outstanding balance. Without liquidity in the estate, or a surviving spouse who can take over the bond in terms of section 45 of the Deeds Registries Act, the executor may be forced to sell a property that the heirs had hoped to keep. At worst, the property may even be lost if the bank forecloses. It is also important to remember that interest continues to accrue on the bond after death – it does not stop simply because the owner has passed away. The sooner the debt is settled, the better for the estate. 3. Tenants and occupation – Where a property is tenanted, the executor steps into the shoes of the landlord. Rent must be collected, leases enforced and maintenance attended to. Conversely, if the deceased owner lived in the property
the High Court. That executor alone has the authority to deal with the property, whether by transferring it to heirs or selling it to settle debts and pay the balance to the heirs. Two key laws govern this process: the Administration of Estates Act (which sets out how estates are administered) and the Deeds Registries Act (which regulates how ownership is transferred in the deeds office). Where a valid will exists, the executor must follow the wishes of the deceased. Where there is no will, the
...property is often the asset that causes the most delays and disputes in deceased estates.
October 2025 | Issue 141 | Asset Magazine 299
298 Asset Magazine | Issue 141 | October 2025
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