The first step in understanding bond registration is knowing what a mortgage bond is. According to the Deeds Registries Act,  a mortgage bond is an instrument used to secure an existing or future debt, or both an existing and future debt. It must be officially signed in the presence of the registrar by the owner of immovable property or by a conveyancer authorised thereto by power of attorney and must be attested by the registrar. 

The bond registration process involves several important role-players working together to ensure a smooth transfer of ownership and registration of a mortgage bond. This includes a seller, a purchaser, an estate agent (if any), a mortgage originator (if any), a transferring attorney appointed by the seller, a bond registration attorney appointed by the financial institution, a cancellation attorney appointed by the seller’s bank to cancel the existing bond, and lastly the Deeds Registry.

Once a purchaser’s home loan is approved by the bank, the bond registration process begins. 

1. The bank appoints a bond registration attorney to handle the legal aspects of registering the bond. 
2. At the same time, the seller appoints a transfer attorney to oversee the transfer of ownership.
3. If the seller still has a bond registered over the property, a cancellation attorney is appointed by their bank to cancel the existing bond. 
4. The bond attorney prepares the necessary documents and arranges for the purchaser to sign the bond documentation. 
5. During this time, the purchaser is required to pay the bond registration costs, which include attorney fees, disbursements and Deeds Office charges. 
6. Once all documents from the bond registration attorney, transferring attorney, and cancellation attorney are ready, they are lodged simultaneously at the Deeds Registry. The Deeds Registry examines the documents and, once everything is in order, registers the property in the purchaser’s name and the bond in favour of the financial institution. 
7. Upon receipt of confirmation of registration from the bond registration attorney, the financial institution pays out the loan amount to the seller or the seller’s bank. 

The bond registration process generally takes 6 to 8 weeks from the time the bond is granted. However, it is important to consider delays such as the issuing or payment of municipal clearance figures on the transfer, delays in cancellation figures from the seller’s bank or Deeds Office backlogs. An additional aspect to consider is the date of registration stipulated in the Deed of Sale, which may be later than 6 to 8 weeks. 

The bond registration process may seem complex, but understanding each step makes it easier to manage. By working closely with your attorney and bank, and staying informed, you can ensure a smooth transition into your new home. 

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