Exceptionally bad form from Standard Bank Home Loans

<p>Earlier this year, I decided to register a second bond on our house. After being approved, I signed the bond documents with the conveyancer. Towards the end of the process, she hands me an "Indemnity by the borrower in favour of the bank". Wooahh. So I ask her, what's this? She didn't seem to be able to give me an answer, so I told her I wanted to take legal advice. I speak to a legal adviser, who says that the indemnity is a problem for various reasons. In my opinion, signing this indemnity appears to waiver my legal rights in favour of a third party, whose identity is unknown to me (and may never be). Also, I have to indemnify the bank against any form of error or omission you can think of, including admin errors!?! His advice? Don't sign it. I advise the conveyancer accordingly. She refers it to the regional legal office of the bank and they bounce around for a bit, finally deciding that I should sign it according to some other clause in the loan agreement. I dig my heels in. I am not signing it. The legal adviser also speaks to an advocate he knows personally, who says that I should not sign it. Then the attorney finally gets the title deed from the bank. I say, as I have before, go ahead with registration but I'm not signing this indemnity. It then goes off to the main legal department of Standard Bank. Now they've told me that they wish to securitize the bond and I must agree to it by signing this indemnity. I do some research and there are lots of problems with SA banks and securitization. They are supposed to let you know in terms of the National Credit Act if they sell your bond to a third party. But they don't. They continue to collect the bond payments from you after the bond has been sold off - and they don't let you know. They should re-register the bond with the new entity at the Deeds Office. But they don't. Now, not only does Standard Bank openly say that they wish to cede the mortgage bonds of their bondholders, they want you to sign an indemnity that is questionable, in my opinion.</p> <p>I am damned if I am going to do this. I have gone to press about this as well. We are still fighting but I wanted to let anyone who is registering a bond with Standard Bank know to be very careful - make sure you read and understand that indemnity before you sign it. We would be interested to know whether any other people reading this have had similar issues with the indemnity document from Standard Bank. What are your thoughts?</p>