Title Deeds

What is the importance of a Title Deed?

A title deed is a legal document that proves ownership of a property (sectional title or freehold) in South Africa in terms of the Deeds Registries Act 47 of 1937.   It contains all the necessary details and relevant information about the property:

• it indicates that the deed has been recorded in the name of the owner and the date
• it describes the property including its size, boundaries and exact position (but not its physical address)
• it confirms the name and identity number of the person / persons who legally own the property
• it confirms the date when the property was transferred, the purchase price, and
• it can have endorsements on which reflect whether there is a homeloan registered, for example

When purchasing a new home, the title deed will be transferred into your name from the seller – a conveyancer will be able to assist you with this.  Once the Registrar of Deeds signs/registers the new title deed, you then become the owner of the property.  If there is joint ownership, then the title deed can also reflect exactly how much of the property is owned by each person, failing each party will own in equal shares.   Before signing any ‘Offer to Purchase’, the buyer should thoroughly read the Title Deed to ensure that they are fully aware of all the details pertaining to the property, including restrictive conditions.

There are several Deeds Offices throughout South Africa, each handling an area of jurisdiction.  The Deeds Registry is open to any member of the public who requires access to information, however each enquiry will come at a nominal cost. If there is no bond, then then the title deeds will be kept in a safe place by the owner.  If there is a bond on the property, then the deeds document will be kept by the finance lender or bank until the home loan on the property has been fully paid.  A copy can be arranged should the homeowner wish to sell the property.  Should further changes need to be made on the title deed then a conveyancer would be able to assist with these.