Simultaneous Registrations - Registration of Deeds in South Africa | Legal Articles


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Simultaneous Registrations - Registration of Deeds in South Africa

The timely registration of deeds such as bonds and transfers, in particular their simultaneous registration, is extremely important for financial reasons.

Simultaneous registration

The Deeds Registries Act 47 of 1937 makes provision for this. Specifically, section 13 provides that any deeds that are executed or attested by the Registrar are considered to be registered once the Registrar has signed the relevant deeds.

Furthermore, the section provides that the registration of deeds, documents or powers of attorney takes place when the Registrar signs the endorsement thereof.

When does registration take place?

Registration happens when the Registrar signs the deed or relevant endorsement and in the case of several interdependent deeds, when all of these deeds have also been signed.

For example: When A passes a transfer to B and cancels his bond in favour of C, and B passes a new bond in favour of D, only once the Registrar has signed the bond, the transfer and all endorsements relating to these transfers and bonds as well as the cancellation of the existing bond, will registration take place.

If, inadvertently, the Registrar’s signature is omitted from any document, deed, power of attorney or endorsement, according to section 102, the same Registrar is not required to rectify the omission. Therefore, any other Registrar may sign said documents.

Provisions made by the Deeds Registries Act

  • Section 13 – The Registrar may sign an endorsement or deed which he inadvertently omitted to sign
  • Regulation 63 – simultaneous registrations or executions are required to be clearly indicated on the deeds in question
  • Regulation 45 – in such a case where mortgage bonds are issued over the same property on the same day while no ranking has been disclosed, the Registrar is required to state the time of each bond’s execution

Property registration process

  • Concluding the written deed of sale – The deed of sale, also known as the offer to purchase, is written and signed by the seller as well as the purchaser. This must be a written agreement as a verbal agreement is not valid or binding.
  • Documents handed to the conveyancing attorney – The seller hands the deed of sale to the conveyancer who then gathers all the necessary documents in order to carry on with the registration process. Several attorneys may be involved due to this transaction requiring simultaneous actions to take place:
  1. Cancellation of seller’s existing bond
  2. Registration of purchaser’s new bond
  3. Transfer of property from the seller to the buyer
  • Deposit – The purchaser is required to pay the agreed amount for the deposit within the stipulated time frame which is typically two weeks from signing the offer to purchase.
  • Further documents required – Once the deed of sale has been handed to the conveyancer, the following documents will need to be gathered to proceed with the registering transfer of property:
  1. Any cancellation fees on the seller’s bond
  2. How the buyer will pay for the property
  3. Any outstanding rates and taxes
  4. Existing title deed of the property
  • Relevant signatures – Signatures from buyer and the seller are required on the following relevant documents:
    • Property transfer documents
      1. Power of attorney – the seller must authorise the conveyancer to appear in front of the Registrar of Deeds in order to register the transfer  
      2. Insolvency and marital declarations
  • Transfer duty declaration sent to the Receiver of Revenue along with payment of transfer duties
    1. Bond documents
      1. Power of attorney – the buyer must authorise the conveyancer to register the bond in favour of whichever bank granted his or her loan
      2. Insolvency and marital declarations
  • Standard documentation from the financial institution
  • Purchaser pays conveyancing fees – The conveyancer will issue the buyer with a statement detailing all relevant costs to be paid
  • Documents issued at the Deeds Office – Between all the attorneys involved, the following documents are required to be submitted to the Deeds Office at the same time:
  1. Bond registration documents
  2. Transfer document
  3. Bond cancellation documents
  • The property is registered – Once the conveyancer hands in all the required documents to the Deeds Office, the documents are examined to ensure they legally comply with requirements and legislation. It’s at this point where the property is registered in the name of the purchaser and the bond is registered simultaneously
  • Purchase price is paid – The buyer settles whatever amounts are outstanding in accordance with the agreement
  • Title deed is issued – The title deed officially renders the buyer the registered owner of the property in question, provided all payment requirements are met

Van Deventer & Van Deventer Incorporated – Conveyancing Attorneys in Cape Town

For expert legal assistance with registration of deeds and registering transfer of property, contact our property attorneys.

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