C&A Friedlander Attorneys

Signing your bond documents can be a stressful and overwhelming exercise if it is your first time because you are unfamiliar with the process.

A bond is registered over a property as security for the bank for the monies lent and advanced to the mortgagor. After applying for the loan through a financial institution or a mortgage originator, you will be presented with offers to accept. Once you have accepted an offer, the conveyancing process will kickstart.

An attorney firm will receive an instruction from the respective bank to attend to the registration of the mortgage bond on their behalf. On receipt of this instruction, the attorneys will contact the client and request certain information and documentation. The information and documentation is used to prepare the loan facility documents and the bond documents.

The attorneys will conduct a search of the Deeds Office records to verify the information and the property over which the bond is about to be registered.

Once the documents are prepared, the client will be contacted to arrange an appointment for signature. The documents to be signed will be the loan agreement, debit order mandate, cession of insurance, affidavits and the power of attorney together with the bond that will be registered in the relevant Deeds Office. It is important to note that the mortgagor has the right to choose an external insurer for their property that is about to be bonded or accept the insurance provided for by the bank. The bank will stipulate their prerequisites for adequate cover of the building by providing a replacement value of the property.

Once all the documents are signed by the client/(s) and submitted to the bank by the attorneys, the bank will verify the documents to ensure all securities and conditions have been met.

Thereafter, the bond and transfer(if any) will be lodged at the Deed’s office for the examination of the deeds. There are three levels of examination. The time period for examination varies but currently it takes an average of 7-10 working days. Once the deeds have passed examination, the bond will become available for registration and the title deed will be endorsed.

The deeds will be returned to the attorney firm and they will deliver it to the bank for their safe-keeping. The bank retains the deeds for the duration of the outstanding loan and only upon settlement and cancellation of the security will it be released to the owner.

Written by Sakeena Lagkar

This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your legal adviser for specific and detailed advice. Errors and omissions excepted (E&OE).