The 7 Steps of the Bond Registration Process

19 Mar 2015

THE 7 STEPS OF THE BOND REGISTRATION PROCESS FOLLOWED BY THE ATTORNEY

Step 1
Receipt of instructions from Bank:
Instructions received from the Bank (usually received electronically).
Contact client to confirm receipt of instruction and request any documents required.

Step 2
Preparation of Documents:
Prepare documents. If a transfer is involved, request a flysheet from the Transferring Attorney. Obtain guarantee requirements and relevant FICA Documents from client.
Obtain a Deeds office printout for the property and the client to check for any interdicts, insolvencies or other caveats that may be registered against the client or the property.
If a further advance is involved obtain the original Title Deed from the bank (current bondholder) and prepare the bond documents for signature.

Step 3
Signature of documents
On receipt of the flysheet (draft Deed of Transfer) and other documents, prepare the bond documents for signature.
Contact the client and arrange for signature of the documents and payment of costs.

Step 4
Guarantees and FICA
Advise the Transferring Attorneys that the bond documents have been signed. Send guarantee, if requested, or advice of the amount available under the Bond. Advise of position to lodge upon request or advise the Transferring Attorney of what is preventing lodgement.
It should be noted that, if the bond is linked to a transfer, the Transferring Attorney dictates the pace of the transaction and will stipulate the date for lodgement.

Step 5
Lodgement of Bond Documents
If a further bond is involved, proceed with lodgement at the Deeds Office.
If a transfer is involved, lodge on request of the Transferring Attorney.
The Deeds take anywhere between 7-12 days to be examined in the Deeds Office whereafter they “come up” for registration.
The Conveyancer then has a further 5 days to register the Bond.
If a further Bond is involved, the bond is handed in for registration and registered on the following day.
If a transfer is involved, the Transfer and Bond Attorney liaise in order to effect simultaneous registration.

Step 6
Registration
On the day of registration, the Bond Attorney arranges with the Bank to have the bond proceeds paid and registers the bond with the other linked transactions. The Transferring Attorney is handed a cheque for the bond proceeds at the Deeds Office.
Alternatively, if there is a guarantee the Transferring Attorney will present if for payment after registration has taken place.
The Bank and client are advised of registration.
In case of a further Bond, the Bond proceeds are paid to the client in terms of his payment instructions.


Step 7
Delivery of Bond Documents
Once the bond has been numbered and micro-filmed, it is then delivered to the Bond Attorney from the Deeds Office. This can take up to 3 months.
The Bond Attorney then obtains the Title Deed from the Transferring Attorney, if applicable, and delivers the Title Deed, Bond and all the other security documents to the Bank to be held for the duration of the registration of the Mortgage Bond.
Should any aspect hereof require clarification you are more than welcome to contact the attorneys to assist you further.