Bond Registration
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What is Bond Registration?
Bond registration is the legal process of registering a mortgage bond over a property in favor of a bank or financial institution that has granted a home loan. This process is handled by specialized attorneys known as bond registration attorneys or conveyancers.
In South Africa, the bond registration process is a crucial step in property transactions, ensuring that the lender's interests are legally protected while providing the buyer with the necessary financing to purchase the property.
The Bond Registration Process
Step 1: Loan Approval
The process begins when a bank or financial institution approves your home loan application. The bank will then instruct their panel attorneys to register the bond.
Step 2: Document Preparation
The bond attorney prepares the necessary documentation, including the bond registration documents and power of attorney to register the bond.
Step 3: Document Signing
You'll be required to sign the bond documents at the attorney's office. The attorney will explain all the terms and conditions of the bond.
Step 4: Lodgment at Deeds Office
The bond attorney lodges the bond documents at the Deeds Office simultaneously with the transfer documents (if it's a property purchase).
Step 5: Registration
Once the Deeds Office is satisfied with all the documentation, the bond is registered simultaneously with the transfer of the property.
Step 6: Payment of Funds
After registration, the bank releases the loan funds to the transferring attorney, who then pays the seller and other parties involved.
Bond registration in South Africa is governed by various laws and regulations that ensure the legal protection of all parties involved:
Deeds Registries Act 47 of 1937
This act governs the registration of deeds and documents at the Deeds Office, including mortgage bonds.
National Credit Act 34 of 2005
This act regulates the credit industry and affects how mortgage bonds are structured and registered.
Financial Intelligence Centre Act (FICA)
Requires attorneys to verify the identity of clients before proceeding with bond registration.
Important Legal Notes:
- Failure to comply with legal requirements can delay or prevent bond registration
- Only qualified conveyancers can register bonds at the Deeds Office
- The bond must be registered before the bank will release the loan funds
- Bond registration typically happens simultaneously with property transfer
Need Help with Bond Registration?
Our experts can connect you with certified bond registration attorneys