Sellers of property please note:
As from 1 January 2020 any person wishing to apply for a certified copy of a title deed or mortgage bond, must place an advert in any newspaper that circulates in the area where the property is situated. The application must be done by means of an affidavit that must be signed in the presence of a Commissioner of Oath.
The general public must thus be informed of the intention, and allow anyone who wishes to inspect a copy of the title deed or mortgage bond, to do so, and to object thereto, should they so wish, within 2 weeks of the advertisement being published.
What does this mean?
Proof of property ownership is having a copy of the property's title deed in your possession. Should your property be bonded, the title deed is in possession of the relevant financial institution holding your property as security for payment of the loan amount. If you have sold the said property, the process of transferring ownership requires your title deed copy being transferred to the purchaser and registered in his/her/its name in the Deeds Office as ownership is transferred from one person to another only by registration of a deed of transfer. The purpose is to ensure the security and indisputability of an owner's title to the property in question. Registration cannot take place unless the transferor (owner) has the title deed of the property concerned.
The above procedure with regards to obtaining a certified copy relates to the instance where the existing copy has been lost/mislaid/destroyed. This procedure could, of course, cause delays with the transfer of the seller's property or bond registration of the buyer. In the event of the purchaser requiring a mortgage loan to be registered against the title deed in order to enable the financing of the transaction, the original title deed will be held by the bank which will also have to consent to the application for a lost or destroyed deed.
It is therefore imperative that sellers and estate agents establish from the outset whether the original title deed is available. REDZetc is most definitely now going to make it a term of our seller's declaration form as many property owners are not even aware of the existence of their property's title deeds.
After all it is the title deed that contains vital information regarding the property that is being sold...and purchased.
Why is it important to know what information is attached to the property's title deed?
Simple. The seller needs to know what he/she/it is selling, and the purchaser most definitely needs to know what he/she/it is buying!
The following is some very vital information but is not necessarily exhaustive. A good property lawyer will be able to explain the contents to you if required, but here follows a layman's explanation:
Which documents need to be lodged with the Registrar of Deeds when a property is being transferred?
All the above information makes it quite clear that both the seller of a property as well as the purchaser need to be well informed as to the contents of the title deed of the property in question.