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Do I have to pay my bond originator a professional fee?

No – the service of a bond originator is free. The banks pay the bond originator a professional fee as the bond originators are contracted to the bank.

What happens to my Title Deed after registration of the bond?

Your original title deed will be sent to the financial institution as additional security for the loan after the bond has been registered.

Will my bond be cancelled automatically if I settled the amount in full?

No. Even in cases where your bond is settled in full, the bond still needs to be cancelled in the deeds office and a fee will be payable to the attorneys attending to the cancellation of the bond in the deeds office.

What is the Bond Initiation Fee?

The National Credit Act 34 of 2005, allows banks to charge an amount for initiation fees to cover their administration costs. You may elect to have the Initiation Fee added to the principal debt or to pay it as part of your costs, before registration of the bond.

What is the bond registration fee?

These fees are the attorney costs, as per the recommended fees of the Law Society, for their service of registering your bond at the deeds office. It is paid to the bond attorney before registration.

I have been approved for a loan by my bank. May I appoint any conveyancer to register my bond?

No. The bank will have a specific local panel of conveyancers which is authorised to register bonds. Find out if your preferred conveyancer is on the panel of conveyancers before you request the bank to send the instruction to the conveyancer.

I have to sign an “authority to pay”. What is this document?

This document instructs the bank to issue guarantees and to make payment of the borrowed funds on the date of registration.