WHAT ARE THE RIGHTS AND OBLIGATIONS OF THE MORTGAGOR?
• Repayment of the loan. The Mortgagor must repay the capital debt and interest to the Mortgagee in terms of the loan agreement. The terms of repayment are contained in the agreement and the terms of repayment is normally 20 years. • Use of the property. The Mortgagee does not obtain the use and enjoyment of the mortgaged property as this is retained by the Mortgagor subject to certain restrictions e.g. the Mortgagor may not, without the written consent of the Mortgagee, grant a servitude over the property in favour of a third party. • Right to sell and transfer. The Mortgagor cannot transfer the property unless the mortgaged debt has been paid in full and the bond cancelled or the land is released from the operation of the bond with the written consent of the Mortgagee. The cancellation or release normally takes place simultaneously with the transfer. WHAT DOES THE MORTGAGE BOND COVER? The mortgage bond covers the land and the improvements effected after the bond was registered, e.g.
