Deed Of Redemption Template for South Africa

The Deed of Redemption is a crucial document in South African property law, used when a property owner has fully paid off their mortgage bond and requires formal documentation to prove the discharge of the security interest. This document is essential for property transactions and must be prepared in accordance with the Deeds Registries Act 47 of 1937 and other relevant legislation. The Deed of Redemption contains specific details about the property, the original mortgage bond, confirmation of full payment, and the formal release of the security interest. It is typically prepared by legal professionals and must be lodged with the Deeds Office for the cancellation of the bond registration. The document is particularly important in property sales, refinancing arrangements, and when property owners need to prove unencumbered ownership.

1. Parties: Full legal names and details of the Mortgagor (property owner) and Mortgagee (usually the bank or financial institution)

2. Background: Recitals detailing the original mortgage bond, its registration details, and the current status

3. Definitions: Key terms used in the deed including Property, Mortgage Bond, Redemption Amount, and Effective Date

4. Property Description: Detailed legal description of the property as per the title deed, including erf number, size, and location

5. Acknowledgment of Payment: Confirmation of receipt of the full redemption amount by the Mortgagee

6. Discharge of Mortgage: Express statement releasing and discharging the property from the mortgage bond

7. Cancellation of Bond: Consent by the Mortgagee for the cancellation of the mortgage bond in the Deeds Registry

8. Warranties: Representations by the Mortgagee regarding their authority and right to discharge the mortgage

9. Costs: Provisions regarding who bears the costs of preparing and registering the deed

10. Execution: Formal signing requirements and witness provisions