The Meaning of Deed of Transfer and Title Deed in Property Transfers

When buying or selling property in South Africa, you will encounter various legal terms related to property ownership. Two common documents that often cause confusion are the Deed of Transfer and the Title Deed. While both are essential in property transactions, they serve different purposes.

At Burger Huyser Attorneys, we specialise in property law and conveyancing, ensuring our clients understand the legal documents involved in property transactions.

What is a Deed of Transfer?

A Deed of Transfer is a legal document used to transfer ownership of a property from one party (the seller) to another (the buyer). It is prepared and lodged by a conveyancer at the Deeds Office as part of the property transfer process.

Key Features of a Deed of Transfer:

✔ Serves as the legal instrument of transfer for immovable property.
✔ Contains details of the buyer, seller, and property description.
✔ Includes any conditions attached to the property, such as servitudes or restrictions.
✔ Once registered at the Deeds Office, ownership is officially transferred to the buyer.

A Deed of Transfer is crucial in the property transaction process because it ensures that the legal change in ownership is properly documented and recorded.

What is a Title Deed?

A Title Deed is the official document that proves legal ownership of a property. After the Deed of Transfer is registered at the Deeds Office, a new Title Deed is issued in the buyer’s name.

Key Features of a Title Deed:

✔ Serves as proof of ownership of a property.
✔ Contains details of the owner, property description, and any encumbrances (e.g., mortgage bonds or servitudes).
✔ Is kept at the Deeds Office, but property owners should also keep a certified copy.
✔ Must be presented when selling the property to initiate a new transfer of ownership.

Key Differences Between a Deed of Transfer and a Title Deed

Feature Deed of Transfer Title Deed
Purpose Transfers property ownership from seller to buyer. Serves as proof of property ownership.
Issued When? During the property transfer process. After the transfer is registered.
Holds What Information? Buyer, seller, property details, transfer conditions. Owner details, property description, bonds, servitudes.
Legal Role Acts as the legal instrument of transfer. Confirms legal ownership after transfer.
Who Prepares It? A conveyancer, submitted to the Deeds Office. The Deeds Office issues it to the new owner.

Why Are These Documents Important?

✔ For Buyers: The Deed of Transfer ensures that ownership is legally transferred, while the Title Deed proves their legal ownership after registration.
✔ For Sellers: The existing Title Deed must be provided before the property can be sold, and a new Deed of Transfer is created for the buyer.
✔ For Banks and Lenders: If a property is financed through a home loan, the Title Deed is held by the bank as security until the mortgage is fully paid.

How to Obtain a Copy of Your Title Deed

If you need a copy of your Title Deed, you can:

  • Request it from the Deeds Office in the area where the property is registered.
  • Contact your conveyancer who handled the transfer.
  • Request it from your bank (if the property is bonded, the bank holds the original).

While both the Deed of Transfer and Title Deed are critical in property transactions, they serve different purposes. The Deed of Transfer is used to legally transfer ownership, while the Title Deed confirms and proves ownership after registration.

At Burger Huyser Attorneys, we specialise in property law and conveyancing, ensuring that property transactions are smooth, legally compliant, and stress-free for our clients. Need assistance with property transfers? Contact us today.

Contact Burger Huyser Attorneys, and book a consultation.

To speak to one of our experienced attorneys in South Africa for immediate assistance, contact us on the numbers below:

Randburg call 061 516 6878; Roodepoort call 061 516 0091; Sandton call 064 555 3358;  Pretoria call 064 548 4838;

Centurion call 061 516 7117; Alberton call 061 515 4699; Bedfordview call 061 536 3223

DISCLAIMER: Information provided in this article does not, and is not intended to constitute legal advice. READ MORE