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

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
The difference between movable and immovable property
Contractual Matters

The conveyancing process explained[post_view before=""]

The conveyancing process starts with a signed Offer to Purchase and ends with the property being registered in the Deeds Office. But, there are numerous steps that need to be completed in between. Here’s a look at how the process unfolds.

Read More
Minors and immovable property
Contractual Matters

10 conveyancing terms explained[post_view before=""]

When it comes to buying or selling a property, it helps to have a basic understanding of the many legal terms involved in the conveyancing process. Here’s a look at the 10 you’re likely to encounter most often, starting with conveyancing itself.

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

A brief look at the conditions for township establishment[post_view before=""]

If a property owner would like to establish a township, the below procedure can give guidance when it comes to dealing with Town Councils. It will always be necessary to consult with a Town Planner who can specialises in dealing with this process:

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.