November 01, 2024
Property

Transfer of ownership in immovable property: Procedures, documentation, and timelines

By Justina Hamupembe July 21, 2023 0
Transfer of ownership in immovable property: Procedures, documentation, and timelines

Purchasing property entails the aspiration of becoming its rightful owner. The Deeds Registries Act 47 of 1937 governs the transfer of ownership in immovable property.

This Act specifies that ownership does not transfer to a purchaser upon signing a contract of sale or making the payment. Instead, ownership is conferred only upon registration of the property in the deeds registry under the purchaser's name.

For this purpose, a conveyancer prepares a deed of transfer, which must be executed in the presence of the Registrar of Deeds either by the property owner or a conveyancer acting on their behalf. Each time a property is sold, a new deed of transfer is required to pass the ownership to the new purchaser.

This registration system serves to ensure the security and certainty of an owner's title to the property. Registration in a person's name serves as clear proof of their ownership. However, some exceptions exist, such as ownership through expropriation, prescription, marriage in community of property, or insolvency, where registration may not reflect the correct title to the property.

Appointing a conveyancer is a common practice in property transactions. Typically, contracts of sale indicate which party's conveyancer will handle the transfer. Estate agents often recommend a conveyancer to the seller, but they must adhere to ethical guidelines and not influence parties to use specific attorneys.

To effect the transfer to a purchaser, several documents must be lodged with the Registrar of Deeds, including:

  1. Transfer Duty: A receipt or certificate from the Receiver of Revenue confirming the payment of taxes and duties on the property.
  2. Rates Clearance Certificate or Body Corporate Levy Clearance Certificate: Certification that rates payable to the local authority have been settled, preventing any delays in transfer.
  3. Consent of the Bondholder: If the property is mortgaged, the bondholder's consent is required for the cancellation or release of the property from the bond.
  4. Compliance with Title Deed Conditions: If the title deed includes restrictions on the property's transfer, evidence of compliance or waiver by the relevant party is needed.
  5. Consents Required by Legislation: Certain laws may necessitate consent from specific authorities before the transfer can take place.

 The duration of a transfer process varies depending on circumstances. In straightforward cases without special consents, a prompt response from both parties can facilitate a quick transfer (within a few weeks). Delays can occur if consents are needed or if any party delays signing the transfer documents.

Efficient registration benefits all parties involved. The seller receives the purchase price upon registration, and the purchaser becomes the property owner from that date. An estate agent's commission is typically payable upon registration. To expedite the process, estate agents should cooperate with conveyancers by providing relevant information.

Transfer costs encompass transfer duty, stamp duty, and conveyancing fees, which may vary and are subject to changes over time. In standard form contracts, the party responsible for paying these costs is often specified. Transfer duty must be paid within six months of acquiring the property, even if registration has not yet taken place. Trying to avoid transfer duty through misleading agreements constitutes fraud and goes against ethical principles.

In conclusion, the transfer of ownership in immovable property requires careful adherence to legal procedures and proper documentation. Engaging a conveyancer and understanding the various requirements and timelines involved can help ensure a smooth and successful property transfer process.

 *For enquiries text, call or email #yourhomegirl Justina Hamupembe at +264812726001 or This email address is being protected from spambots. You need JavaScript enabled to view it.

 

 

 

 

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Last modified on Sunday, 23 July 2023 15:08
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