The title deed is the legal document that proves that an owner, or the bank through whom the home is financed, owns the home. When the property is sold, the title deed is at the centre of that process. This is why it is essential that the document is kept safe and out of harms way.
READ: Get the lowdown on your land | Check the title deed before you buy
“As a property owner, in addition to recording all the relevant information about your property, your title deed is important because it is evidence that you are the legal owner,” explains Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
To help homeowners better understand how Title Deeds work, RE/MAX of Southern Africa explains that all title deeds should include the following:
- A physical description (size, including the buildings, boundaries, any sub-divisions or consolidations, and exact – surveyed – geographical position)
- Whether the structures are freestanding, semi-detached, and/or an apartment or communal type building.
- If the property is freehold or sectional title.
- Owner’s information recording the personal details of the legal owner(s), including full names and identity numbers
- Historical information, including all dates when the property was transferred, all the previous registered owners and what they paid for the property, and if/when the property was sub-divided.
- Any special conditions that apply to properties. For example, for many years, the sale of alcohol (other than in restaurants) was prohibited in Fish Hoek in Cape Town because the original farm owner made this a condition of the sale and development of the land.
READ: Buyers, double check those compliance certificates
“A property title deed will also record anything that could restrict its sale. For example, if it is bonded to a bank, before a property changes ownership, that bond must be paid off. Each time a property changes hands, information is added to the title deed, which is stamped with an official Deeds Registry Office seal. This confirms the date on which the property was registered in the name of the new owner,” says Goslett.
For those who are paying off a home loan, the bank will keep the title deed until the loan is paid off in full and the owner requests to close the loan account. “It is important to note that, even after paying off the loan in full, the loan account will stay open unless you request to close it. If you sell the property before you have paid off the bond, that loan must be settled before the bank releases the title deed to the transferring attorney,” he explains.
On the other hand, if you have paid cash for the property, Goslett explains that once the property is registered in your name at the Deeds Office, the conveyancing attorney will send the title deed to you. Similarly, when you have paid off your home loan and you request to close the loan account, your bank will then send the title deed to you.
READ: The deeds office is ready to transfer, but the seller has not secured COC, what can the buyer do?
If you happen to lose your title deed owing to a burglary, or if your house burns down (as happened in Knysna a few years ago), or if your home is washed away in a flood (as happened in KwaZulu Natal), you can apply to your local Deeds Office and will have to pay a fee before being issued with a certified copy of your title deed.
Members of the public can also request information about a property through the Deeds Office but will have to have all the information about the property, including the owner’s full name, identity number and/or date of birth. “You will also need some technical information about the property – not just the street address – the erf number, township or farm name and number. You will have to make a formal application – either at the office or online – and complete the relevant form, and will have to pay a fee,” says Goslett.
Those who have any further questions about how the title deed works are encouraged to speak to a local RE/MAX agent for further information. “If you are ever unsure about anything relating to the ownership of your home, get some free advice from a local real estate expert,” says Goslett.
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