South Africa has one of the most sophisticated and accurate systems of property registration in the world.
All property information records are kept at the Surveyor General’s Office in the form of a SG diagram which details the exact location and extent of property.
A Title Deed is assigned to every property. It records all limitations on transferability and use of the property such as bonds and servitudes and is held by the Deeds Office.
An Estate Agent or the public can call for this information if required.
Most property in SA is owned on the basis of Freehold Title or Sectional Title. Freehold Title confers full title to the land and improvements on the land and Sectional Title confers full title of the demarcated Section of a building.
Your quick guide to the property transfer processMost property sales in South Africa are handled by registered Estate Agents who will assist in preparing the Offer to Purchase and will shepherd the progress of the transfer and registration process. It is also legal for owners to buy and sell property privately.
How it Happens – Step by Step
Should a purchaser wish to form a new Company or Close Corporation to be the transferee, he will have to sign the Offer to Purchase on behalf of the legal entity to be formed. Once the Company/Close Corporation has been formed, the directors will have to ratify the Deed of Sale.
Please note that it is not possible to sign an Offer to Purchase on behalf of a Trust to be formed. The Trust must be in existence with a Letter of Authority from the Master of the High Court before it can purchase, or make an offer to purchase, a property
If a purchaser wants to nominate another person as the transferee, the name and address of the nominee must be provided in writing on the same calendar day that the sale was entered into, i.e, by midnight on the date of sale. Should the nomination only occur on the next day, double transfer duty will be payable.
The information in this article is courtesy of www.showme.co.za