You've found your dream property and made a successful offer to purchase. Congratulations! You're one step closer to property ownership. To prove you are the legal owner of the property, you'll need to have the title deed transferred to your name. Seeff demystifies title deeds, a crucial part of the real estate buyer-seller process:
- What is a title deed?
- The purpose of a title deed
- The title deed transfer process
- How to get a title deed
- Viewing your title deed information
- How to change your title deed
- What to do if you lose or destroy your title deed
What is a title deed?
In terms of the Deeds Registries Act 47 of 1937, a title deed serves as proof that you are the rightful owner of a property. A title deed does not only define proof of ownership but also contains some property information.
Here are the details you can find in the title deed:
- Name of the registered owner
- Name/s of previous owners
- History of the property
- Property description
- The date when the property was last transferred
- Rules and restrictions surrounding the property. This includes zoning, use, and sale of the land
- Property size, boundaries, and the exact position
- Purchase price of the property paid by the current owner
- An official deeds registry office seal to indicate that the deed has been recorded in the name of the owner and the date
When an owner wants to sell their property, an original title deed is required when registering the property in the buyer's name in the deeds office.
The purpose of a title deed
The title deed acts as a documentary proof of ownership. It's a necessity if you wish to sell, subdivide, or rebond your property. If you're considering a property, the title deed can offer important insight into the property's history, purchase price paid by the current owner, and rules and restrictions surrounding the property. These factors have an impact on the value of the property and the negotiation process. You should always ask the buyer for a copy of the deed so you are aware of the property's details.
Title deed transfer process
Owning a property is a dream come true for those on the property hunt. However, it's important to be prepared as obtaining a title deed can be a lengthy process. In order to get a title deed transferred onto your name, you will need the assistance of a lawyer specialising in property transfers (also known as a conveyancer). You will only become the owner of the property once the Registrar of Deeds signs and endorses the deed.
After this has been signed, a copy of the title deed is then kept at the deeds office closest to you and the original would be sent to the conveyancers. Should the property be bonded, the conveyancers will forward the original to the bank as security, or alternatively to the new owner if the property is not bonded.
The process of having a home's title deed transferred to your name happens in the following way:
- The transfer attorney (appointed by the seller) prepares all the documents needed for registering the property transfer.
- After the bond documentation for the buyer has been prepared and the seller's bond has been cancelled, all the necessary information including the clearances from local authorities, bodies corporate, and SARS will be lodged at the deeds office.
- The deeds office will take 2-3 weeks to verify all submitted documents depending on the various circumstances and, once complete, will notify all the attorneys. The final step of registration will take place on the same day.
- On the day of registration, the bank pays out the amount needed for the home loan and the buyer officially becomes the owner of the property.
How long does it take to receive a title deed? Typically, the entire registration process takes between two to three months to complete. Delays in the process are always possible; something both buyers and sellers should be fully aware of.
From the buyer and seller side, delays can be a result of not providing personal information and identity documentation, not signing transfer or bond registration documents, or not paying a deposit, bond, or transfer/registration costs quickly.
Stakeholders in the process such as transferring attorneys can also have their role delayed or be the source of delays. For example, they might face challenges in getting rates clearance figures from local municipalities. The bond approval process from banks can also cause delays. The local deeds office can also suffer backlogs, making the registration of deeds take longer.
How to get a title deed
To obtain a copy of a deed from a deeds registry, you must:
- Go to any deeds office (deeds registries may not give out information acting on a letter or a telephone call).
- Go to the information desk where an official will help you complete a prescribed form and explain the procedure.
- Request a data typist to do a search on the property, pay the required fee at the cashier's office, and take the receipt back to the official at the information desk.
- A search may take 30 to 60 minutes. In some of the larger offices, the copy of a deed is posted or it must be collected after a certain period of time.
Alternatively, you can contact a conveyancer in your area to assist you with the process.
There are 10 deeds offices in South Africa covering various regions and a main head office in Pretoria.
Viewing your title deed information
If you wish to verify your title deed information, you can do it online or visit your local deeds office. To view your title deed online, you can visit websites like Lexis® WinDeed. These websites return ownership and other key information about properties registered in the deeds office.
Alternatively, you can visit your local deeds office in person. Here you will need to complete a prescribed form and pay a fee for access to the document.
How to change your title deed
It's not unusual for a homeowner to update or change their title deed. For example, if their surname is changed, this information needs to be reflected in the title deed for a future transaction to be able to take place on the property. In order to do this, a lawyer will need to facilitate the process.
What to do if you lose or destroy your title deed
Accidents happen, and you may find you require a new copy of your title deed. Previously, you would simply need to submit an application and affidavit to the Registrar of Deeds. However, amendments to Regulation 68 of the Deeds Registries Act 47 of 1937, requires that you also publish an advert in a local newspaper in the area where the property is located, providing notice of your intention to apply for a certified copy of your title deed. Please do note that deeds offices have their own procedures with regards to applications. You should call or visit your local deeds office to find out the procedure you need to follow.
Having a qualified property professional can help you navigate title deeds, an important part of the buyer-seller process. Get in touch with your local Seeff agent today.
This post was originally published in September 2017. It has been completely revamped and updated for freshness, accuracy, and comprehensiveness in December 2021.