PROPERTY NEWS - There are several marital systems recognised by the South African Deed Offices, each of which will influence property transactions in different ways. Understanding this can help homeowners make good investment decisions upfront.
"Buying a home as a married couple can be an exciting step in the couple's life together," says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
"However, it is important to adopt a long-term view on any real estate investment. I would therefore encourage all married couples to understand how their marriage contract will affect them in relation to owning a home together."
Below, RE/MAX of Southern Africa explains each option for registering a home at the Deeds Office.
This marriage contract is the epitome of what's yours is mine and what's mine is yours. In these instances, any home purchased between the couple will be jointly registered in the name of both spouses.
This also means that if you owned property before getting married, the property will automatically form part of the joint estate after you are married. This means that you cannot sell the home without first obtaining the consent of your spouse, as he/she will now own that home jointly with yourself.
A possible exception is if you inherited a property subject to a condition that stipulated that the inherited property is excluded from any future joint estates.
Also referred to as an antenuptial contract (ANC), these contracts typically exist to protect any assets going into a marriage. In these instances, you are free to own and purchase property in your own name without the consent of your spouse. However, you are also able to purchase a property jointly if this is what you wish to do.
These contracts will differ depending on whether the ANC includes or excludes the accrual system. In an ANC without accrual, the two estates remain separate during the marriage.
But, an ANC with accrual means that while the two estates prior to marriage are separated, after the date of marriage the two estates become joined and any property may then form part of the accrual unless it is expressly excluded within the ANC.
If the marriage dissolves or there is death of a spouse, the items accrued during the marriage (unless expressly excluded in the ANC) are split fairly between the individuals.
Unless an antenuptial contract is in place, any customary marriage that was concluded after the Recognition of Customary Marriages Act 120 of 1998 came into effect on 15 November 2000, is deemed to be in community of property and will follow the same conditions as explained above.
Those who were married before this act came into effect are able to own property separately from their spouse, or they may purchase property together as co-owners if this is what they prefer.
Pre-2000 customary law and Muslim rites marriages are similar. But, those married after 2000 under Muslim rites would enjoy similar benefits to that of an out of community of property marriage, whereas post-2000 customary law marriages are more similar to being married in community of property.
When a couple is married under the laws of any country outside of South Africa, they are able to own property separately from their spouse and can have the property registered in their own names. They may also choose to purchase property together as co-owners if this is what they prefer. The only snag is that, when the property is sold, whoever is the registered owner of the property will need to be duly assisted by their spouse to conclude the transfer.
"No matter how your marriage is structured, owning property either jointly or separately will help ensure greater financial security for the household," says Goslett.
"Those who wish to learn more about the topic should reach out to an attorney. To find out what real estate investments are available to them, I would also encourage married couples to get in touch with their nearest RE/MAX agent to see what homes are available within their price range."
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