My bond is paid up, so the bond is cancelled, right?

There is a common misconception that once a mortgage bond has been paid up, it is automatically cancelled and the title deeds are returned by the financial institution or bond holder to the registered owner. This is not the case.

A bond has to be registered in the Deeds Registry for where the property is situated. The bond is endorsed against the title deeds of the property. This means that, during the registration process, the title deeds are stamped to indicate that the property has been mortgaged. The stamp stipulates the amount of the mortgage, the bond number, and the date on which the property was mortgaged. It also contains the Registrar’s signature.

For the endorsement to be removed, the bond has to be cancelled. The cancellation, just as in the case of the registration of the bond, has to go through a formal examination process in the Deeds Registry.

There is a fee that is charged for the bond to be cancelled. This is payable by the owner, who borrowed the money in the first place.