RE: COVERING MORTGAGE BOND
Please could some clarity be provided regarding a Covering Mortgage Bond:
1. A mortgage is a charge on property as security for debt. The causa in respect of such debt is irrelevant. 2. I am not quite sure I understand the question correctly. The capital amount of the debt is not important but what is very important is the amount of the security for a number of reasons including preference on insolvency and more importantly to enable the deeds office (and the conveyancer) to work out their fees.
Please be informed that both these questions have been answered during the 2009 Conference of Registrars. A bond can be registered for a foreign debt reflected in a foreign currency . However a bond cannot be registered without an amount being referred to (see RCR 20 and 22 of 2009).
1. A mortgagor has a paid up mortgage bond on a property. He takes out 2 CCMBs on the property. He wants to cancel the CCMBs but retain the original bond. Does conveyancer draft Consent to Cancel CCMBs but not original bond? If Conveyancer has to draft Consent to release CCMBs from operation of bond, will it be release of person AND property or release of PROPERTY only?
2. If mortgagor has a 2nd property where the original mortgage bond has been cancelled and he has taken a CCMB on the same property, he owes R200k on the CCMB. Can a conveyancer lodge a consent to release (of either person and property/property)?