Property & Housing
Mortgage Bond
A mortgage bond is a registered security interest over immovable property given by the property owner to secure a debt (usually a home loan). The bank can sell the property if you default.
Legal Definition
A real security right registered at the Deeds Registry over immovable property to secure a debt. The property owner (mortgagor) grants the right to the creditor (mortgagee). Upon default, the mortgagee can apply to court for a judgment and warrant of execution against the property.
📖 Constitutional / Statutory Basis: Section 25 and Section 26, Constitution of the Republic of South Africa, 1996; Deeds Registries Act 47 of 1937
Practical Example
You take a home loan. The bank registers a mortgage bond over your house. If you miss repayments, the bank can sue, obtain judgment, and have the house sold in execution to recover the loan.
Frequently Asked Questions
Can my primary residence be sold in execution?
Yes, but with protections. The court must consider whether the sale is just and equitable, and the Constitutional Court has required meaningful engagement before execution against a primary home.
What is a second mortgage?
A further bond registered over the same property, ranking after the first bond. The first bond is paid first; the second gets the remainder.
What is bond cancellation?
When the loan is fully repaid, the bond must be formally cancelled at the Deeds Office by a conveyancer. Until cancelled, it remains a registered encumbrance.
Related Terms
Know the law. Know what to say.
Get the free South African rights checklist — 10 real scenarios, exact words to use, constitutional references. No card needed.