Bond Process – Quick Guide

STEP 1: RECEIVE INSTRUCTIONS FROM THE BANK

  • Receive the instruction from the Bank and contact the client to acknowledge receipt of the Bond instruction;
  • Request FICA from client and any other relevant documentation pertaining to the Special conditions listed in the instruction.

STEP 2: PREPARATION OF DOCUMENTS

  • If a transfer is involved, request a copy of the flysheet (a copy of the Power of attorney/ Draft Title Deed) and guarantee requirements from the Attorneys attending to the Transfer;
  • Verify the property and clients details via a Deeds office search by checking for any interdicts or caveats that may be registered;
  • In the event of a further advance, request the Title Deed from the Bank and prepare the Bond documents for signature.

STEP 3: SIGNATURE OF DOCUMENTS

  • Upon receipt of the FICA and supporting documentation, Draft deed and guarantee requirements from the Transfer Attorney, prepare the documents for signature;
  • Contact the client to arrange an appointment for signature and payment of the Bond registration costs.

STEP 4: GUARANTEES AND FICA

  • Advise the Transferring Attorneys once the documents have been signed and check the FICA compliance;
  • Send the Bank Guarantee/ Undertaking to the Transferring Attorney.
  • Ensure that the Bank’s pre-lodgement requirements have been complied with in order to receive the “Proceed to lodge” before lodgement in the Deeds office.

STEP 5: LODGEMENT AT THE DEEDS OFFICE

  • In the case of a Further Bond, proceed with lodgement. If the transaction is linked to a transfer, lodge on request of the Transferring attorney;
  • The examination process at the Deeds office take approximately 7 to 10 business days before the deeds comes up for registration;
  • The Transfer and Bond attorneys will have 5 business days to arrange for the transaction to be registered in the Deeds office.

STEP 6: REGISTRATION

  • On day of registration, simultaneous registration happens if the transaction is linked to a Transfer;
  • The Bond Attorney informs the Bank and the client that registration has been effected, and the proceeds are paid out by the Bank;
  • In the case of a Further Bond the Bond proceeds are paid to the client, otherwise it gets paid to the Transferring Attorney who will disburse it according to the Deed of Sale and client’s instruction.

STEP 7: DELIVERY OF DEEDS

  • Once the Bond document is numbered and micro-filmed at the Deeds office, it is delivered to the Bond Attorney. This can take up to 3-4 months;
  • The Transfer Attorney sends the original Bond and Title deed to the Bond Attorney for onward delivery to the Bank as security over the property for monies lent and advanced;
  • Once the Bond is fully settled, the client can apply for the formal cancellation of the Bond in the Deeds office, upon which he will receive the original Title deed over his property.