Mortgage Man explains the Home Loan / Mortgage Bond process in South Africa
Buyers Info - Home Loan / Mortgage Bond process in South Africa
The Home Loan / Mortgage Bond Process
Buying a home and registering a mortgage bond can be stressful and time consuming. Mortgage Man will be on hand to advise and guide you through the whole process, and best of all our service is ABSOLUTELY FREE.
These are the role players
- Seller
- Buyer
- Estate Agent (if applicable)
- Transferring Attorney (appointed by the seller)
- Bond Attorney (appointed by the bank)
- Cancelling Attorney (appointed by the bank cancelling the sellers bond)
If possible, try and use the same attorney to speed things up.
Seller and Buyer sign an offer to purchase
The buyer contacts us and one of our consultants submit the application to the bank(s)
The Approval
The bank approves the home loan and instructs the bond attorney to register a mortgage bond
The Property Transfer
The seller instructs the transferring attorney to transfer the property
The title deed and cancellation figures are requested from the bank that holds the mortgage bond over the property
A statement of rates and taxes is requested from the local authority
The Transferring Attorney
The transferring attorney receives the title deed and cancellation figures, and sends a copy
The transferring attorney asks the buyer and seller to sign the transfer documents
The buyer pays the transfer costs
The Cancellation Attorney
The cancellation attorney is requested to cancel the seller's mortgage bond on receipt of a guarantee for the amount owing
The Bond Attorney
Bond attorney contacts transferring attorney
The bond attorney advises the transferring attorney of the amount available for guarantees, and requests the draft deed of transfer and the guarantee requirements
The bond attorney prepares the bond documentation together with the buyer
The buyer signs the documents and pays the costs
The bond attorney prepares and issues the necessary guarantees, forwards them to the transferring attorney, and prepares the bond documents for lodging at the Deeds Office
The Deeds Office
All the documents are lodged simultaneously at the Deeds Office by arrangement with all the attorneys concerned
The Deeds Office takes about two to three weeks to check the documents before they are ready for registration by all the attorneys on the same day
The Bank
On the day of registration, the bank pays out in accordance with the guarantees issued
Allow at least three months for the registration and transfer of the bond
What could delay the registration of a bond?
Failure by the seller to provide details of the bank holding the existing mortgage bond
Delay in receiving rates figures from the local authority and/or clearance certificates
Delay in the provision of guarantees
Failure by the buyer to pay transfer and/or bond costs on time
The seller delays the signing of transfer documents
The buyer delays the signing the transfer and/or bond documents
Failure by the seller and/or buyer to provide personal information
The existing bond holder not providing cancellation figures and title deeds to the transferring attorney
Failure by the buyer to pay a deposit (if required)
The buyer delays obtaining employee income documents for new bondholders, and a failure to comply with other bank requirements
Mortgage Man explains the Home Loan / Mortgage Bond process in South Africa
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