Many people are uncertain about the whereabouts of the original Title Deed after the transfer of property ownership has been registered in the Deeds Office. This is determined by how the purchase price for the immovable property is paid by the purchaser.

Cash Payment

If the purchaser pays cash for the property, then the original Title Deed will be delivered to the purchaser by the conveyancer when the property is registered in his or her name in the Deeds Office.

Mortgage Bond

If the purchaser has to obtain a loan from a financial institution (mortgage bond) – meaning they do not have sufficient funds available to pay for the property outright but need to secure a loan from a financial institution – then the original Title Deed will be delivered to the bank (mortgagor). The bank will retain the original Title Deed as security until the full loan has been repaid by the purchaser.  

Monthly Instalments

If the seller and purchaser agree that the purchase price may be paid to the seller by the purchaser in monthly instalments, there are two possible options available:

• The parties enter into an Agreement of Sale whereby the seller sells to the purchaser the property and allows them to pay the purchase price in monthly instalments. It is stipulated in the Agreement of Sale that the property will only be transferred to the purchaser when the last instalment has been paid.
• In this instance, the original Title Deed will be given to the new owner when the property has eventually been registered in the Deeds Office.
• The parties enter into an Agreement of Sale whereby the seller sells to the purchaser the property and allows him or her to pay the purchase price in monthly instalments and passes transfer of the property to the purchaser. The seller may insist that a mortgage bond needs to be registered in their favour. This is similar to a mortgage bond being registered when the purchaser finances the purchase price through a financial institution, however, the mortgagor in this instance is the seller of the property and not a bank.
• In this instance, the original Title Deed will remain in the seller’s safekeeping until the full purchase price has been paid by the purchaser. Once the last instalment is made, the necessary documents will be lodged in the Deeds Office to cancel the bond registered over the property. Once the bond has been cancelled, the original Title Deed will be delivered to the new owner when it is released from the Deeds Office.

It is important to understand what happens to the original Title Deed in property transactions. Whether it is a cash purchase, mortgage bond arrangement, or instalment payments, the method of payment determines the destination of the Title Deed and the security of property ownership.

By grasping these nuances, both purchasers and sellers can navigate property transactions with confidence, ensuring that legal requirements are met, and ownership rights are safeguarded throughout the process.