• The Real Team

The bond procedure explained.

You have received bond approval from a bank or financial institution, you sign your letter of acceptance, what happens next?

1. After you have signed the letter of acceptance, the bank will electronically instruct a conveyancing firm to attend to the registration of your bond. They will be 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, 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 it is compliant with the bank's requirements. After that, the documents are uploaded to the bank. The bank will conduct assessments on the documents and the client. If everything is in order per the bank's 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 deeds office will take approximately 7-10 working days to be examined in the Deeds office. Hereafter the deeds 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 out.



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