Home title deed

Dolby

Dolby

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Am I right in saying that whomever owns the house, physically has the title deed?

So in my case, I had an FNB bond which I cleared last week. I've asked to get the title deed and get the reply :

You will need to contact the attorneys to confirm when your title deed will be delivered.

Do the bank send the deed to someone else when a bond is cancelled?
 
You will have to pay a layer to get the deed. It will cost more than R1500...
 
Why though?

I thought the FNB would hold it ; why would they give it away and make me pay for it now?

I'm trying to get info from FNB but it's like pulling teeth
 
FNB Home Loans will send the bond + title deed to the attorneys with an instruction to cancel the bond. Cancellation costs is for the client's account.

Once the bond is cancelled, the attorneys will send the title deed directly to the client. Usually there is a waiting period to get the deeds out of the deeds office. In Cape Town it can take up to 4 months.
 
Ah thanks - just saw this too *sigh*

https://www.fnb.co.za/home-loans/cancelling-your-homeloan.html

A request to cancel the bond will be issued to FNB by the attorney who is nominated by the customer. On receipt of this request, FNB will calculate the cancellation figures which will be issued to the Bank's cancellation attorney together with the Bond document and Title Deed to start the cancellation process. The Bank's cancellation attorney will liaise with the customer's cancellation attorney.
 
Well for one, the deed needs to be updated at the deeds office to show that the bank no longer holds the bond, and you actually really own the property... That is what the lawyer's for.
 
P924 said:
Well for one, the deed needs to be updated at the deeds office to show that the bank no longer holds the bond, and you actually really own the property... That is what the lawyer's for.
Click to expand...

Makes sense.

Thanks
 
The lawyers are used to cancel the "Bond" that is registered over the property. Just because you have paid it off it does not mean the bond is cancelled. IE, an access bond with a zero balance can be used to draw down on at any stage.
 
Isn't it a good idea to leave your bond open? If you ever need to finance something again like a car, your bond rates would be lower than a normal vehicle finance and you would save admin costs.
 
Coasti said:
Isn't it a good idea to leave your bond open? If you ever need to finance something again like a car, your bond rates would be lower than a normal vehicle finance and you would save admin costs.
Click to expand...

It is recommended.

I tried but they wouldn't allow me to
 
What do mean they would not allow it?

If you keep some outstanding debt on the bond, there is nothing they can do about it
 
Dolby said:
It is recommended.

I tried but they wouldn't allow me to
Click to expand...

I think it would have worked if you left R2000 unpaid in it while paying it off in R50 a month and then keep dipping into your access bond so the balance never reach zero.
 
Nope.

I tried that ... but they said there was no reason why I couldn't withdraw and max it again via the access ; and I needed to close. I even asked them to remove the access part, but they'd only close it.
 
Lawyers have to notify the Municipal deeds office that account is fully paid and then the papers are processed. Takes 3-5 months depending on how slow your local municipality deeds office is.
 
Dolby said:
Nope.

I tried that ... but they said there was no reason why I couldn't withdraw and max it again via the access ; and I needed to close. I even asked them to remove the access part, but they'd only close it.
Click to expand...

I am with Investec. Had a bond open the last 10 or 11 years with a few hundred rand outstanding. And a few hundred thousand available to withdraw. Basically the amount available to withdraw is the original bond less the capital paid off had it been paid over 20 years. As soon as I withdraw something the repayment goes up. Seems very Easy.
 
I have house A (primary) and B (rental)

A has a bond owing but B doesn't. I decided to take a bond on B and pay most of A - but keep it open as most of you have done.

Bank said I can afford A or B but not both *if* I max them both. A condition to get B was to close A totally

I told them I obviously wouldn't draw from A if I couldn't afford it - but they still wanted it closed. I even said they could remove the access part, but they wouldn't accept. In the end I closed A
 
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In that case its a regulatory thing. It would probably constitute reckless lending if you drew both to their max.
 
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