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South African Bond Procedure Explained

Great, you’ve received your bond approval from your bank / financial institution, you’ve signed your letter of acceptance - but what happens next?

In this article, our attorneys in Cape Town provide you with a chronological step by step explanation of the bond process.

Bond procedure - Conveyancing Attorneys Cape Town

What you need to know about the South African Bond Procedure

 

  1. After you have signed the letter of acceptance your bank will electronically instruct a conveyancing firm to attend to the registration of your bond- they are referred to as the bond attorneys.
     
  2. If a transfer is involved, the bond attorney will request a flysheet and guarantee requirements from the transfer attorney. If a transfer is not involved- in the case of a refinance or further advance loan; then the bond attorneys will request the original title deed from yourself or the bank.  A deeds office printout of the property and yourself will be obtained to establish if any interdicts, insolvencies or caveats are registered against the property or yourself.
     
  3. Upon receipt thereof, the bond registration documents that you are required to sign will be drafted and prepared. The bond attorney will contact you to arrange an appointment for the signature of the documents and payment of the bond registration costs.
     
  4. After signature, the bond attorneys will issue the transfer attorney with a guarantee which indicates the amount of money that will be made available to the transfer attorney on the day of registration.
     
  5. The bond attorney will compile the signed documents along with any additional documents requested by the bank. These documents are checked to ensure that they are compliant with the bank’s requirements. Thereafter the documents are uploaded to the bank. The bank will conduct assessments on the documents and the client. If everything is in order per banks compliance, the bank will issue the bond attorney with a proceed to lodge. If a transfer is involved, the bond attorneys will advise the transfer attorney, as the matter will have to be lodged at the Deeds office simultaneously. If the bond is not subject to a transfer, then the bond attorneys will lodge your matter at the Deeds office after receipt of the proceed to lodge from the bank or financial institution.  
     
  6. The deed will take approximately 7-10 working days to be examined in the Deeds office; hereafter the deed will come on preparation for registration. The conveyancer has 5 days in total to register the bond. On the day of registration, the bond attorney will advise the bank and the client of the registration and the bond proceeds will be paid.

Velile Tinto Cape – Conveyancing Attorneys Cape Town

Our Conveyancing Attorneys in Cape Town provide specialised conveyancing services to both the commercial and residential sector. Our expertise includes:

  • Residential property transfers
  • Sheriff transfers
  • Transfer of deceased estates
  • Commercial property transactions
  • Land consolidations and Subdivisions
  • Mortgage bond registrations
  • Private and third-party bonds
  • Cancellation of Bonds
  • Sectional title registers
  • Township registrations
  • Drafting Agreements of Sale
  • Preparing a township development plan for an area, including removal of restrictions

Currently our law firm employs 12 conveyancers and two conveyancing consultants. This enables us to handle large volumes and our reporting systems are state of the art.

For more information about our conveyancing services or property transfers, please contact us.

Purchasing property in a Sectional Title Scheme? This article may answer some of the questions you may have.

Comments are closed for this post, but if you have spotted an error or have additional info that you think should be in this post, feel free to contact us.

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