Why you need to check the title deed before making an offer to purchase
Category Newsletter
A title deed is the document that proves legal ownership of a property in South Africa. These documents are held at the Deeds Office. When Deeds Offices close, as was often the case in the last year, no properties can be legally bought or sold and transferred to a new owner.
According to the Deeds Registries Act, 47 of 1937, home purchases are made official once the title deed is transferred to the new owner's name. The title deed shows proof of ownership, details of the property, and conditions to the property purchase (including the purchase price). The original title deed is required when registering the property in the buyer's name at the Deeds Office, and the assistance of a lawyer is required to handle these transfer matters, such as acquiring the title deed.
Once the deed is signed by the Registrar of Deeds, a copy of the title deed will be held at the nearest Deeds Office, while the original document is sent to the conveyancers. If the property is bonded, the conveyancers will send the title deed to the bank as a form of security, however, if the purchase price was paid in cash, the title deed is given to the new owner.
The title deed document holds details such as:
Since the title deed contains pertinent information on the property, you will need to study it diligently to ensure that you don't purchase a property that you do not want.
Restrictions present on the title deed often relate to how a property can be used or transferred. This includes how the property is zoned, how the land is required to be used or sold, along with any real rights on the use of the property. Once the Offer to Purchase is signed, it is a binding contract between the buyer and seller and any regrets will come much too late to be rectified.
For this reason, homeowners and estate agents are advised to keep a copy of the title deed in their possession so that it can be easily inspected and perused for any restrictions and limitations.
Other considerations to be made will come up if the property is owned by more than one person/legal entity. The title deed should indicate such joint ownership and detail how much of the property is owned by each. Joint ownership can, at times, cause difficulty in the transfer process - especially if one party has other ideas about the valuation of the property.
Having an experienced conveyancer on your side means that many of the processes and pitfalls regarding title deeds will be a lot easier to manage - ensuring that you make an offer to buy the property you really want and have your transfer take place at an expedited pace. At 3%.Com Properties, we know property and the law, making sure to put you and your requirements first.
This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your legal adviser for specific and detailed advice. Errors and omissions excepted (E&OE)
According to the Deeds Registries Act, 47 of 1937, home purchases are made official once the title deed is transferred to the new owner's name. The title deed shows proof of ownership, details of the property, and conditions to the property purchase (including the purchase price). The original title deed is required when registering the property in the buyer's name at the Deeds Office, and the assistance of a lawyer is required to handle these transfer matters, such as acquiring the title deed.
Once the deed is signed by the Registrar of Deeds, a copy of the title deed will be held at the nearest Deeds Office, while the original document is sent to the conveyancers. If the property is bonded, the conveyancers will send the title deed to the bank as a form of security, however, if the purchase price was paid in cash, the title deed is given to the new owner.
The title deed document holds details such as:
- A comprehensive description of the property
- Measurements of the property size
- Rules and restrictions surrounding the property.
- Property history
- Name of the registered owner
- Names of previous owners
- The purchase price paid by the current owner
Since the title deed contains pertinent information on the property, you will need to study it diligently to ensure that you don't purchase a property that you do not want.
Restrictions present on the title deed often relate to how a property can be used or transferred. This includes how the property is zoned, how the land is required to be used or sold, along with any real rights on the use of the property. Once the Offer to Purchase is signed, it is a binding contract between the buyer and seller and any regrets will come much too late to be rectified.
For this reason, homeowners and estate agents are advised to keep a copy of the title deed in their possession so that it can be easily inspected and perused for any restrictions and limitations.
Other considerations to be made will come up if the property is owned by more than one person/legal entity. The title deed should indicate such joint ownership and detail how much of the property is owned by each. Joint ownership can, at times, cause difficulty in the transfer process - especially if one party has other ideas about the valuation of the property.
Having an experienced conveyancer on your side means that many of the processes and pitfalls regarding title deeds will be a lot easier to manage - ensuring that you make an offer to buy the property you really want and have your transfer take place at an expedited pace. At 3%.Com Properties, we know property and the law, making sure to put you and your requirements first.
This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your legal adviser for specific and detailed advice. Errors and omissions excepted (E&OE)
Author: 3%.Com Properties