Why you need to check the title deed before making an offer to purchase?

Why you need to check the title deed before making an offer to purchase?

If you are planning to buy a new property, you will need to get the title deed transferred into your name to prove that you are the owner of the property. You will need the assistance of an attorney specializing in property transfers (also known as a Conveyancer) to help you transfer the title deed into your name.

You will only become the owner of the property when the Registrar of Deeds signs the transfer. After it has been signed, a copy of the title deed is kept at the Deeds Office in the province where the property is registered.

What is a title Deed?

A Title Deed is documentary proof of ownership in terms of the Deeds Registries Act 47 of 1937.Each property has its own separate Title Deed. 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.

What details does the title deed hold?

- Name of registered owner.

- Name of previous owner.

- Property history.

- Rules and restrictions surrounding the property

- Measurement of the property size.

- The purchase price paid by the current owner.

It is of paramount importance that you study your title deed diligently by taking into account the above mentioned details to ensure that you do not purchase the incorrect property. Once the offer to purchase agreement is signed by the parties, it is binding.

It is for these reasons that it is emphasized that a copy of the title deed should be kept by both the homeowners and their estate agents for any inspection or perusal for any limitations and restrictions.

What happens if the property is owned by more than one person or legal entity?

The title deed should indicate such joint ownership and detail how much of the property is owned by each. This can sometimes cause difficulties especially if one party has other ideas about the valuation of the property.

For more information, kindly contact our team of conveyancers at Duvenage Attorneys. We will gladly assist you with the whole process and pitfalls regarding title deeds by ensuring that you make an offer to buy the property you really want and have your transfer take place at an expedited pace.