Buying a property involves a fair amount of paperwork, but one document in particular deserves attention: the title deed. It may not be the most exciting item in your filing cabinet, but it's arguably the most important.
So, what exactly is a title deed?
Simply put, it's the registered legal document that proves ownership of a property. Maintained by the Deeds Office, a government registry, it records who owns what and under which conditions. It includes the property's unique description, erf number, size and boundaries, together with any registered restrictions, servitudes or mortgage bonds. Think of it as your property's official ID, with considerably more legal clout.
When do you get one?
Once you've bought a property, a conveyancing attorney handles the transfer process, preparing and lodging the necessary documents with the Deeds Office. This application undergoes several examinations before registration is approved. Ownership officially passes to you on registration, after which the updated title deed is issued. If you've financed your purchase with a home loan, the bank will generally retain the original as security. Otherwise, it should make its way to you through the conveyancer.
What if you lose it?
Don't panic, and certainly don't start turning the house upside down just yet. A replacement can be obtained through an application to the Deeds Office, arranged by a conveyancer. This involves an affidavit confirming the loss and a formal notice procedure. Allow for professional fees and administrative costs, which can amount to a fair amount of money.
What about a paid-up home loan?
Paying off your bond doesn't automatically put the title deed in your hands. The bank must arrange for the bond to be formally cancelled at the Deeds Office before the original deed can be released, and there are cancellation costs involved, so it's worth factoring these into your arrangements.
And does your estate agent check that it's available?
Ideally, yes. As part of the listing process, your agent should establish whether the property is bonded and, if not, whether the seller has the original deed. If it's missing, the conveyancer should be notified early to avoid unnecessary delays during transfer.
In short, keep it somewhere safe, know who has it, and don't mistake it for just another piece of paperwork. After all, the house may be where the heart is, but the title deed is what legally makes it yours.