Hijackers have a new target in South Africa
Homeowners are being warned that properties are increasingly being targeted by criminals through sophisticated schemes.
South Africa is experiencing a notable increase in title deed fraud and property hijackings across the country.
Speaking in a radio interview with HOT1027FM, Grant Smee, CEO of Only Realty Property Group, said that confidence in the system itself is starting to erode.
He added that the rise in this type of fraud has prompted the government to explore some solutions, such as digital title deeds.
However, while these efforts aim to improve security, Smee noted that fraud remains widespread in the market.
“It is absolutely rife with fraud because of the amount of money and the misunderstanding around property transfers that is out in the market,” he said.
He explained that while title deed fraud is less common in more formal property markets, it is particularly prevalent in lower-income and informal areas.
He added that syndicates often work together to manipulate the system. “There is a lot of title deed fraud where people collaborate and work together to have the deed transferred,” he said.
These groups use fraudulent documents, information, and conveyancers that work in conjunction with the fraudsters. Smee warned that the problem is becoming more and more rife.
Banks, which often serve as a first line of defence when a bond is registered over a property, are not immune.
However, Smee did add that both the financial sector and government are increasingly aware of the risks and are working to strengthen protections.
Smee believes the surge in property-related crime is driven by a combination of criminal innovation and systemic weaknesses.
“There’s ingenuity in seeing weakness in the system and taking advantage of that weakness, but also weakness in education and understanding around property transfers.”
He added that fraudsters exploit gaps in oversight, particularly in lower-value transactions that may not receive the same scrutiny.
Hijackings are becoming more common
Estate agents and conveyancers, while more tightly regulated in recent years, are not entirely beyond suspicion.
Smee warned that fraudulent operators still find ways to exploit the system. “There still is a space where fraudulent estate agents are taking advantage of knowing the system and taking advantage of consumers.”
Smee added that one of the most troubling aspects of title deed fraud is how difficult it is to reverse. “When the fraudsters get involved, they do make sure that the paperwork is in place,” Smee explained.
Undoing such transactions is costly and complex, and requires legal action in the High Court.
Alongside title deed fraud, property hijacking is also gaining ground—particularly in major urban centres like Johannesburg.
While historically associated with large apartment blocks, Smee said the trend is shifting. “What we’re seeing now is individual homes being taken over,” he said.
This can involve vacant properties being occupied and claimed, or even abuse of short-term rental arrangements. “It could lead to massive issues if it’s not dealt with swiftly,” he warned.
Smee believes the scale of the problem is likely far greater than official figures suggest due to underreporting and the fact that some cases are resolved quietly.
Smee stressed that simply digitising title deeds is not enough. “Not only is digitising of the title deed process important, but also the digitisation of the verification leading up to that,” he said.
This includes verifying estate agents, conveyancers, and the flow of funds. “If we just digitise one segment, we’re only dealing with one part of the problem and not the whole solution.”
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