David’s Snippets (A collection of legal articles taken from real life in a conveyancing office.)

Is it really worth it?

I have heard people complain about the length of time it takes to transfer immovable property in SA.

Why does it take so long, (average 2 months) when other countries have much shorter periods and easier systems in use?

The short answer is that SA arguably has the best registration systems in the world. Let me explain!

There is a rebuttable legal presumption in SA that when you hold a title deed in your name, you own the property. The system of registration specifically prevents confused ownership. Very few other countries have that! Contesting title to property ownership is not unheard of in our country, but at a guess, it might occur as rarely as one in a few million transfers. The rest remain unchallenged – it’s a case of the exception proving the rule! This demonstrates the certainty of our registration system – the very foundation stone of the entire Real Estate industry in SA.

Apart from the convenience of not having to prove title because it’s presumed, (a common problem in other countries), there is another much more important reason why it’s a critical factor to the industry. The entire Financial Institution bond lending system in this country is based upon the concept of certainty of title.

Why else would Bank vaults be filled with millions of what are considered by Banks as ‘assets’ – none other than the  title deeds to all the properties on which bond finance has been advanced. Without our very definite and precise registration system, security of tile would be undermined and with that, Bank lending confidence would also suffer. Imagine our

Real estate industry without bond finance? Hard to imagine really hey!

So yes, we do have a complex system of registration and yes, for that system to work properly and without compromise, it requires the interaction of qualified lawyers (conveyancers) working directly with the public and then registering Deeds via a complex Deeds Office process – all carefully documented in the Deeds Registry Act, its regulations and other important things like Registrars conference resolutions etc. It’s a veritable minefield of detail if you add it all up, demanding for success, masses of care and diligence by a whole series of people the public probably never hear about.

Admittedly, the system does come at a cost in time and money, but once you consider the BIG picture, let me assure you – it’s like L’Oréal – it’s worth it!

Cheers for now – David

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For previous Davids Snippets articles click here
https://www.citizen.co.za/north-glen-news/148373/davids-snippets-collection-legal-articles-taken-real-life-conveyancing-office/
https://www.citizen.co.za/north-glen-news/149416/rates-refund-process/
https://www.citizen.co.za/north-glen-news/150289/davids-snippets-collection-legal-articles-taken-real-life-conveyancing-office-2/