FILTERS:

Non resident replies

23 October 2008

From Allen West:
Before an answer can be provided to this question, one must first ascertain who is requesting that the deeds be endorsed. There is a bill in the pipeline which will provide for this information, but as far as my knowledge goes no endorsement on the title is anticipated.

Only the registrar of deeds may endorse deeds and should a title be endorsed by anybody else, it will be deemed unserviceable.


Jacques Steyl,
The non-resident endorsement was effected by the Bank on the Title Deed as proof that the funds used for payment of the purchase price originated from abroad. This was as a Reserve Bank requirement and the non-resident had to have the endorsement on the Title Deed in order to repatriate the funds abroad in the event of the property being sold.

You (the Conveyancer) had to provide proof to the Bank that the funds originated from abroad in order to have the Deed endorsed - a copy of your Trust account reflecting the inward transfer was sufficient for this. It appears that this practise is no longer required as I recently requested a Deed to be endorsed and was told by the non-resident department at one of the major Banks that they no longer endorse the Title Deeds - the client only needs to prove that the funds to purchase the property originated from abroad in order to repatriate same on selling of the property.


Aloma Rabie,
The bank through which the international payment was received, stamps the title deed. The bank requires proof from the attorney firm of the receipt of the international payment (your accounting dept can assist with this).

So, if you bank with ABSA, your bank would have received the payment from e.g. UK per a special document. ABSA would then require a copy of this document which proves that the payment was received in your trust account and on the strength of that, will stamp the title deed.


Elmien le Roux,
A non resident endorsement is advisable where a non resident purchaser utilises offshore funds to acquire immovable property in the RSA. The purpose is to record that the funds are not South African in origin and to enable the purchaser to repatriate the funds again upon the sale of such property. The bank who has received the funds from the offshore account will attend to the endorsement of such a certificate after registration of transfer. It will be advisable to ensure that such endorsement is on a separate page and that it reflects full particulars of the title deed and the property so that it can, if required, be temporarily detached from the title deed with lodgement in the deeds office, as such endorsement is of course only of relevance to the Reserve Bank and not to be dealt with at the Deeds Office.

The international banking divisions at all the commercial banks will be able to fully assist.


and Louis Le Roux,
Re endorsement of title deeds - the Bank endorses the title deeds to prove that the funds for the purchase of the property were remitted from overseas. When the property is sold those funds may be repatriated without any exchange control restrictions.

I have never had any problems from the Deeds Office from this endorsement - it is usually made on the back of the title deeds and is often probably not even noticed.



Submit your comment:
 
Name
EMail
Comments
Security Picture (click to change)
Word shown in picture: