Your home loan is paid up. What happens next?

Often, a bond will be paid up before the owner of the property decides to sell it. Here’s a step-by-step look at what he or she can expect once they reach this impressive milestone.

The ins and outs of subject to bond approval clauses

1) Step one

The bank with which the bond is held may automatically appoint attorneys on its bond cancellation panel to cancel the bond registered against the property in the Deeds Office. Alternatively, the owner of the property may contact the bank and request that the bond be cancelled and the title deed released.

2) Step two

The appointed attorneys will contact the property owner of the property to obtain the necessary FICA documentation. They will then issue a bond cancellation information sheet, which must be completed and returned by the owner, and arrange payment of the bond cancellation attorney’s fees.

3) Step three

Once the attorneys have received the required security documents and completed the paperwork, they will lodge the consent to cancellation at the Deeds Office so that the bond can be cancelled.

4) Step four

Once the bond has been cancelled and the attorneys have received the title deed from the Deeds Office, they will arrange for the owner to collect the original title deed for safekeeping.  

Important: The property owner must check the refund information sheet carefully as it may include a clause that requires him or her to confirm whether the homeowner’s building insurance is to be cancelled or kept in place after registration. This clause applies if the insurance was taken out with the bank.

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

Recommended for you

Property Blog Articles | Advice | Contractual Matters | Market News
Contractual Matters

The termination of joint ownership[post_view before=""]

The action for division of property is well established in South African law. Every co-owner of property may insist on a partition of the property at any time. This may be done even in the case where there is a perpetual joint ownership agreement.

Read More
Your bond application: A key ingredient to the property transfer
Contractual Matters

Suspensive conditions[post_view before=""]

Contracts for the sale of immovable property will very often contain suspensive conditions. One of the most common types of suspensive conditions is bond approval. 

Read More
Buying tenanted properties - don’t get caught out
Contractual Matters

Electronic signatures and the virtual commissioning of affidavits[post_view before=""]

In our June newsletter, we looked at an interesting court decision handed down in 2020 by the Eastern Cape Division of the High Court of South Africa, related to the application of electronic signatures to offers to purchase land. Last year, the electronic signing of documents once again came under the spotlight in the case of Firstrand Bank Limited v Jacques Louis Briedenhann. Interestingly, this decision was also handed down by the Eastern Cape Division of the High Court, which appears to be making groundbreaking decisions in this regard.

Read More
Property Blog Articles | Advice | Contractual Matters | Market News
Contractual Matters

The property professional’s checklist for dealmaking[post_view before=""]

The property professional plays a critical role in the process of buying and selling real estate. When ‘making the deal’, they must engage with the seller to collect information and documentation that will be needed throughout the process. At the time of taking the mandate, it is crucial that they clarify certain facts and obtain specific information and documentation in order to pre-empt any issues that may arise, thus saving time.

Read More
Buying tenanted properties - don’t get caught out
Contractual Matters

Electronic signatures and OTPs[post_view before=""]

As we live in an online world, and because of the recent pandemic, electronic signatures are becoming more commonplace – and an increasing number of buyers and sellers are asking to sign their OTPs electronically.

Read More

Need more Snymans content?

Sign up for our monthly newsletter.

Your home loan is paid up. What happens next?

Often, a bond will be paid up before the owner of the property decides to sell it. Here’s a step-by-step look at what he or she can expect once they reach this impressive milestone.

The ins and outs of subject to bond approval clauses

1) Step one

The bank with which the bond is held may automatically appoint attorneys on its bond cancellation panel to cancel the bond registered against the property in the Deeds Office. Alternatively, the owner of the property may contact the bank and request that the bond be cancelled and the title deed released.

2) Step two

The appointed attorneys will contact the property owner of the property to obtain the necessary FICA documentation. They will then issue a bond cancellation information sheet, which must be completed and returned by the owner, and arrange payment of the bond cancellation attorney’s fees.

3) Step three

Once the attorneys have received the required security documents and completed the paperwork, they will lodge the consent to cancellation at the Deeds Office so that the bond can be cancelled.

4) Step four

Once the bond has been cancelled and the attorneys have received the title deed from the Deeds Office, they will arrange for the owner to collect the original title deed for safekeeping.  

Important: The property owner must check the refund information sheet carefully as it may include a clause that requires him or her to confirm whether the homeowner’s building insurance is to be cancelled or kept in place after registration. This clause applies if the insurance was taken out with the bank.

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