What should I know about bond registrations and cancellations?

For the majority of property buyers, taking out a bond to help finance the purchase of their dream home is an essential step of the process. The good news for Snymans clients is that our experienced team can guide you through the process…

Buying Property On Auction | Property Blog Articles

To make sure you know what to expect from the bond registration and bond cancellation process, we’ve put together this simple step-by-step guide.

Firstly, it’s important to bear in mind that there are timeframes within which the process needs to be completed. This is to protect a seller from being tied to an offer to purchase and waiting indefinitely for the necessary conditions to be met. As such, a buyer should always work closely with their attorneys and provide all requested information timeously to avoid delays.

Here is what you need to understand about the bond registration process and the answer to the question ‘what does a bond attorney do?’:

Step 1: After the bond approval process has been successful, the financial institution will appoint a bond registration attorney. Upon receipt of the instruction, the bond attorney will make contact with the buyer / client and explain the process and outline what documents and information are required.

Step 2: While this is happening, the seller will provide the transfer attorneys with the required information in order to process the cancellation of their bond (e.g. requesting cancellation figures from the financial institution with whom the seller’s bond is held). If the property is not bonded, the seller will instead provide the transfer attorneys with the original title deed.

Step 3: The bond attorneys will then receive the draft deed and guarantee requirements from the transfer attorneys. The guarantee serves as a clear indication to all parties that the required funds are available, although they will only be released on the date of registration.

Step 4: The bond attorney will also prepare and draft the mortgage loan agreement and supporting documents as per the financial institution’s conditions and legislative requirements. The buyer / client will be called upon to sign the bond documentation and to provide original FICA documents.

Step 5: Once the bond attorney submits the signed legal agreements and supporting bond documents to the financial institution (depending on the financial institution, this may be done electronically or manually), the financial institution will indicate whether all requirements have been met or if any documents are outstanding. If any additional information is required, the bond attorney will request this from the buyer / client in order to submit this to the financial institution.

Step 6: Once all legal representatives (bond, transfer and cancellation attorneys) have the necessary documents and information to hand, they will arrange a date for lodgement at the Deeds Office. All attorneys are required to lodge simultaneously in the Deeds Registry.

Step 7: It takes approximately seven to ten working days for the Deeds Office to examine the documents, after which registration can be affected.

While the process is managed carefully by the various conveyancing attorneys involved, both sellers and buyers should do their homework on the processes involved. This will help avoid any surprises or delays along the way. 

For example, a seller should be sure to provide their financial institution with the necessary notice to cancel their bond to avoid penalties. Buyers should also pay close attention to what documents are required by the financial institution who granted their bond to ensure that all documents can be gathered and sent timeously.

At Snymans, we believe that communication is the key to ensuring the bond registration or bond cancellation process runs smoothly. As such, we aim to provide exceptional service and regular status updates to ensure our clients are kept in the loop and can remain relaxed and confident that all is on track.

Follow Snymans on Facebook for more legal information, tips and news about property.

Recommended for you

The difference between movable and immovable property
Contractual Matters

What happens if a mistake is made during the transfer of a property?[post_view before=""]

It’s an unfortunate reality that mistakes do sometimes occur in deeds and documents during the transfer process. Fortunately, however, the Deeds Registries Act makes provision for mistakes of this nature to be rectified.

Read More
What Happens To The Ownership Of My Property When I Get Married
Contractual Matters

Customary marriages and ownership of immovable property[post_view before=""]

Recognition of customary marriages in South Africa has undergone several shifts over the years through the implementation of new legislation. This has impacted not only the legal status of the parties to a customary marriage but also their ownership of and rights to matrimonial property.

Read More
My name has changed - what happens to my property’s title deed?
Contractual Matters

Rules Board Regulates Non-litigious Fees[post_view before=""]

The introduction of the Legal Practice Act 28 of 2014 has led to several changes in the juridical space, including one related to non-litigious fees – fees charged by attorneys for services that do not constitute litigation and are not finalised in court.

Read More
My name has changed - what happens to my property’s title deed?
Contractual Matters

Corporate actions and resolutions[post_view before=""]

In South Africa, the business and affairs of a company must be managed by its board of directors. As such, the board is responsible for the daily corporate and commercial affairs of the company.

Read More
Minors and immovable property
Contractual Matters

Defunct Homeowners Associations and Consents to Transfer[post_view before=""]

Title deeds of cluster developments commonly contain a condition which states that alienation or transfer of a property by the owner is not allowed unless consent from the Homeowners Association (HOA) is provided. Usually inserted by the relevant local authority when approving the cluster development, this type of condition also confirms that all subsequent owners of the property automatically become members of the HOA.

Read More

Need more Snymans content?

Sign up for our monthly newsletter.

What should I know about bond registrations and cancellations?

For the majority of property buyers, taking out a bond to help finance the purchase of their dream home is an essential step of the process. The good news for Snymans clients is that our experienced team can guide you through the process…

Buying Property On Auction | Property Blog Articles

To make sure you know what to expect from the bond registration and bond cancellation process, we’ve put together this simple step-by-step guide.

Firstly, it’s important to bear in mind that there are timeframes within which the process needs to be completed. This is to protect a seller from being tied to an offer to purchase and waiting indefinitely for the necessary conditions to be met. As such, a buyer should always work closely with their attorneys and provide all requested information timeously to avoid delays.

Here is what you need to understand about the bond registration process and the answer to the question ‘what does a bond attorney do?’:

Step 1: After the bond approval process has been successful, the financial institution will appoint a bond registration attorney. Upon receipt of the instruction, the bond attorney will make contact with the buyer / client and explain the process and outline what documents and information are required.

Step 2: While this is happening, the seller will provide the transfer attorneys with the required information in order to process the cancellation of their bond (e.g. requesting cancellation figures from the financial institution with whom the seller’s bond is held). If the property is not bonded, the seller will instead provide the transfer attorneys with the original title deed.

Step 3: The bond attorneys will then receive the draft deed and guarantee requirements from the transfer attorneys. The guarantee serves as a clear indication to all parties that the required funds are available, although they will only be released on the date of registration.

Step 4: The bond attorney will also prepare and draft the mortgage loan agreement and supporting documents as per the financial institution’s conditions and legislative requirements. The buyer / client will be called upon to sign the bond documentation and to provide original FICA documents.

Step 5: Once the bond attorney submits the signed legal agreements and supporting bond documents to the financial institution (depending on the financial institution, this may be done electronically or manually), the financial institution will indicate whether all requirements have been met or if any documents are outstanding. If any additional information is required, the bond attorney will request this from the buyer / client in order to submit this to the financial institution.

Step 6: Once all legal representatives (bond, transfer and cancellation attorneys) have the necessary documents and information to hand, they will arrange a date for lodgement at the Deeds Office. All attorneys are required to lodge simultaneously in the Deeds Registry.

Step 7: It takes approximately seven to ten working days for the Deeds Office to examine the documents, after which registration can be affected.

While the process is managed carefully by the various conveyancing attorneys involved, both sellers and buyers should do their homework on the processes involved. This will help avoid any surprises or delays along the way. 

For example, a seller should be sure to provide their financial institution with the necessary notice to cancel their bond to avoid penalties. Buyers should also pay close attention to what documents are required by the financial institution who granted their bond to ensure that all documents can be gathered and sent timeously.

At Snymans, we believe that communication is the key to ensuring the bond registration or bond cancellation process runs smoothly. As such, we aim to provide exceptional service and regular status updates to ensure our clients are kept in the loop and can remain relaxed and confident that all is on track.

Follow Snymans on Facebook for more legal information, tips and news about property.