Your home loan is paid up. What happens next?
Often, a bond will be paid up before the owner of the property decides to sell it. Here’s a step-by-step look at what he or she can expect once they reach this impressive milestone.
1) Step one
The bank with which the bond is held may automatically appoint attorneys on its bond cancellation panel to cancel the bond registered against the property in the Deeds Office. Alternatively, the owner of the property may contact the bank and request that the bond be cancelled and the title deed released.
2) Step two
The appointed attorneys will contact the property owner of the property to obtain the necessary FICA documentation. They will then issue a bond cancellation information sheet, which must be completed and returned by the owner, and arrange payment of the bond cancellation attorney’s fees.
3) Step three
Once the attorneys have received the required security documents and completed the paperwork, they will lodge the consent to cancellation at the Deeds Office so that the bond can be cancelled.
4) Step four
Once the bond has been cancelled and the attorneys have received the title deed from the Deeds Office, they will arrange for the owner to collect the original title deed for safekeeping.
Important: The property owner must check the refund information sheet carefully as it may include a clause that requires him or her to confirm whether the homeowner’s building insurance is to be cancelled or kept in place after registration. This clause applies if the insurance was taken out with the bank.
Written by Wessel de Kock
Useful resources & expert property law advice
