About

About Khaya Lam
How it Works

Khaya Lam is an initiative of the Free Market Foundation (FMF), aimed at promoting property ownership by ensuring families living in municipally-owned rental stock become titled owners. As of August 2024, it celebrated the significant milestone of distributing 16 300 title deeds of properties to the total value of an estimated R1,5 billion, which contributes to providing dignity and security through property ownership.

The Khaya Lam initiative promotes property ownership among individuals who live without formal title deeds as tenants of the municipality.

Background

Many individuals in South Africa, live in homes they don’t legally own, making it difficult for them to secure loans or invest in their properties.

Title Deed Conversion

The initiative focuses on converting those who have lived on municipal property, often for an extended period, from tenants into homeowners with fully tradeable title deeds.

Legal Process

The Khaya Lam initiative works with local authorities, conveyancers, and other legal experts to navigate the complexities of property law and transfer ownership of the land to the residents. This often includes identifying legal ownership, ensuring compliance with local regulations, and processing the necessary documentation.

Community Engagement

The initiative engages with the community to explain the benefits of property ownership. This includes sensitising residents about their rights and the responsibilities that come with property ownership.

Economic and Social Benefits

By providing people with formal property titles, the Khaya Lam initiative empowers them economically by enabling access to credit, increasing their property value, and fostering a sense of community and stability – turning dead capital into dynamic capital. What these new owners do with their property, of course, is up to them – the essence of ownership!

Empowering Individuals

Overall, the Khaya Lam initiative aims to empower individuals through property rights, fostering a sense of stability and promoting economic growth within communities.

The Khaya Lam initiative is designed to facilitate property ownership for individuals who may not have access to formal property rights. By empowering families with property rights, the Khaya Lam initiative aims to foster economic independence.

Here is how it generally works:

Funding

The FMF obtains funding from sponsors who support titling.

MOU

The FMF signs Memoranda of Understanding (MOUs) with municipalities.

Independent Process

Projects fall mainly but not exclusively outside any state assistance.

State Involvement

Where there is state assistance, Khaya Lam provides the additional funding needed to resolve complex issues, for example:

– Subdivide semi-detached houses with mutual ownership so that each resident has a separate title deed to their portion.

– Convert a Communal Property Association (CPA) so that each resident has their own title deed.

Financial Obligations

Outstanding debts and obligations are transferred from tenants to title-holders.

Payments

Khaya Lam pays for transfers, verifications, etc, and on occasion for surveys, etc.

Title Deed Handover

Title deeds are handed out at emotional events.