1 Enterprise Road Fairland, 2195 P O Box 1065 Johannesburg, 2000 Email: [email protected] Web: www.fnb.co.za Tel: 087 730 1144
Directors: LL Dippenaar (Chairman), SE Nxasana (CEO), VW Bartlett, JJH Bester, JP Burger, MS Bomela, L Crouse, PM Goss, NN Gwagwa, PK Harris, WR Jardine, EG Matenge Sebesho, AT Nzimande, D Premnarayen (Indian), KB Schoeman, RK Store, BJ van der Ross, JH van Greuning. Company Secretary: BW Unser.
First National Bank – a division of FirstRand Bank Limited. An Authorised Financial Services and Credit Provider. Reg No. 1929/001225/06 (NCRCP20)
Home Loan Pre-agreement Statement
1. Maintenance
For the duration of this Agreement the Customer is required to keep in good repair the Property, including all buildings, improvements, partitions, fixtures and fittings thereto, to the satisfaction of the Lender, and the Customer shall keep the Property in conformity with the requirements of any competent authority and shall make no material alterations or additions thereto or to any part thereof nor remove or demolish the same without the prior written consent of the Lender. Should the Customer fail to comply with the afore going conditions then on the Customer’s behalf, the Lender may effect or expend any sum necessary for the repair, maintenance and upkeep of the Property in order to conform to the requirements of any local authority. The Lender shall be entitled at all reasonable times to enter upon and inspect, repair and maintain the Property as aforesaid at the Customer’s expense.
2. Costs, charges and fees
The Customer will be liable to pay the initiation fee and if applicable, insurance premiums on the due dates. The Customer hereby authorises the Lender to debit the Customer’s home loan account with the initiation fee and if applicable insurance premiums on their due dates. The Customer has the option to pay these fees and charges upfront directly into the Customer’s home loan account. The customer will further be liable to pay all monthly fees and charges on the Repayment Date of each successive month. Where there is a change concerning the amount of a fee or charge, or a change in the frequency or time for payment of a fee or charge, the Lender will give the Customer written notice of at least 5 (five) business days setting out the particulars of such a change.
3. Consolidation
The Principal Debt, interest thereon and any monthly fees and charges due in terms of all agreements which are secured by mortgage bonds registered over the Property, in favour of the Lender, will be consolidated with the amount due in terms of this Agreement and will be payable in single monthly repayments.
4. Interest
Debit interest will be calculated daily on the amount outstanding at the end of each day and will be compounded on the Repayment Date and debited monthly to the Customer’s home loan account. Debit interest will be charged from the date on which any amounts are advanced to or on behalf of the Customer. Credit balances on the customers account shall not accrue interest. If a variable interest rate is applicable to this Agreement the Lender will give the Customer written notice, setting out the new rate no later than 30 (thirty) business days after the day on which the change to the variable interest rate takes effect.
5. Debit order authorisation
The Customer, and where so applicable the 3rd party debit order account holder, hereby authorises the Lender to debit the nominated account with the repayment amount due, on the Repayment Date. In the event of an increase in any fee, charge or interest rate, the Lender is hereby authorised to increase the repayment amount under the debit order authorisation, to ensure that the indebtedness to the Lender will be repaid within the Term of this agreement. It remains the responsibility of the Customer to ensure the monthly debit order for the repayment of the home loan remains in effect and that it is sufficient to cover the minimum repayment required. Payments must be made to the Customer’s home loan account.
Where the Bond repayment is made by 3rd party debit order, and the 3rd party debit order is cancelled, it is the obligation of the Customer to implement the required debit order for the repayments of the home loan.
The first debit will be processed on the nominated day of the month after registration of the Bond and thereafter on that day of each successive month. In the event that the payment day falls on a Saturday, Sunday or recognised South African public holiday, the payment day will automatically be the very next ordinary business day. Furthermore, if there are insufficient funds in the nominated account to meet the obligation, the Lender is entitled to track the nominated account and re-present the instruction (“re-presenting functionality”) for payment until sufficient funds are available in the nominated account.
Annexure 'A'
6. Statement of account
A detailed written statement of account will be sent to the Customer at least every 6 (six) months. Should the Customer not receive a statement of account at any stage, he/she is to notify the Lender accordingly.
7. Cession and delegation
7.1. The Customer hereby consents and agrees to the cession of the Lender’s rights and/or to the delegation of the Lender’s obligations in terms of this agreement and the Customer hereby appoints a duly authorised representative of the Lender to be his/her true and lawful agent with full power and authority to enter into and execute a novation or any other form of agreement on his/her behalf in order to give effect to and confirm such cession and/or delegation to one or more other persons or entities. (Novation is an agreement whereby one obligation or more is extinguished and replaced by a new obligatory relationship.)
7.2. At any time, the Lender (or any person or entity to whom its rights and/or obligations are ceded, delegated and/or assigned) shall without notice to the Customer, be entitled to cede, delegate and/or assign all or any of its rights and/or obligations under this agreement, either absolutely or as collateral security to one or more other persons or entities (notwithstanding that a cession, delegation and/or assignment to more than one person or entity may result in a splitting of claims against the Customer) and on any such cession, delegation and/or assignment taking place (without limiting the effect thereof), the Customer shall make all payments (the right to receive which have been ceded to such cessionary) direct to such cessionary, without any set-off, deduction or withholding of any nature whatsoever.
8. Insurance
8.1. Insurance cover
The Customer is required to insure and keep insured the buildings and other improvements to the property to the satisfaction of the Lender and the following minimum requirements shall apply:
8.1.1. The buildings shall be covered against risk of loss or damage by fire, lightning, flood, storm, wind, hail, snow, bursting of geysers and water pipes, theft, power surges, impact, accidental damage, loss or damage occurring during construction or alteration, explosion and earthquake not caused by mining activities, subsidence, heave and landslip.
8.1.2. The insured value of the property shall be for an amount not less than the full replacement value, as if the property was totally destroyed by an insured event. This amount is based on market related building costs and shall include:
8.1.2.1. clearance and removal of rubble and preparation of the land for re-building; 8.1.2.2. re-construction of the property to the original specifications; and
8.1.2.3. professional fees for architects, engineers and any other building specialists involved in the process of restoring the property to its original state before the advent of the insured event. 8.1.3. The insured amount shall be increased on an annual basis in line with industry norms and will be
determined by the insurer.
8.1.4. The insurance shall commence on the date on which the risk passes to the Customer. 8.1.5. The Customer is required to ensure that the insurance policy includes SASRIA cover.
8.1.6. Should the Customer require additional insurance cover for any other risk of loss or damage not set out herein, it will be the Customer’s responsibility to arrange such additional insurance. The Lender shall not be liable for any damages as a result of the Property being underinsured.
8.1.7. Should the Customer at any point in the future undertake alterations and additions that will affect the insured value of the property, it shall be the Customer’s responsibility to amend the policy of insurance to accommodate these changes to adequately cover the replacement value of the improvements on the property. The Lender assumes no liability for underinsurance should the insurance value of alterations and additions not be covered by the Customer.
8.1.8. All insurance premiums shall be debited to the Customer’s home loan account 8.2. Claims on insurance policy
8.2.1. The Customer is responsible for submitting and finalising all claims with the insurer.
8.2.2. If the Customer elects the Lender’s recommended insurer the Lender will not be deemed to be acting as the Customer’s agent.
8.2.3. The Lender shall not be liable in the event that the insurer rejects the Customer’s claim for any reason. 8.3. Waiver of insurance policy
8.3.1. The Customer has the right to waive an insurance policy proposed by the Lender and substitute a policy of the Customer’s own choice.
8.3.2. Should the Customer elect not to accept the property insurance proposed by the Lender, the Lender may require the Customer to pay the premiums of the Home Owners portion of his/her elected policy by debit
8.3.3. The Customer will be required to nominate the Lender as the loss payee under the policy. 8.3.4. If funds are not available to pay the premium, the Lender shall not pay such premium. 8.4. Lapse, substitution and proof of insurance cover
8.4.1. Irrespective of whether or not the Customer chooses the Lender’s proposed insurance policy, the Customer will be responsible for ensuring that the insurance cover over the buildings and improvements does not lapse during the Term of this agreement.
8.4.2. Should any policy chosen by the Customer lapse or not be implemented for any reason whatsoever the Lender reserves the right, but is not obliged, to substitute its own proposed policy and the premiums payable in respect any substituted policy covering the property will be debited to the Customer’s home loan account.
8.4.3. The Lender shall not be liable in the event that any policy chosen by the Customer lapses and/or the insurer rejects the Customer’s claim for any reason.
8.4.4. Where a Customer chooses to incept a policy other than that recommended by the Lender, the Customer must provide the Lender with documentary proof, on an annual basis, that such cover is still in place. 8.5. The Lender holds third party liability cover.
9. Valuation
Notwithstanding any valuation of the Property conducted by the Lender or the granting of a facility against the security of a mortgage bond over the Property, the Lender will not be responsible for any defects in the Property or for ascertaining the market value of the Property. No warranties may be implied or inferred from a valuation obtained by the Lender. The Lender is under no obligation whatsoever to disclose the valuation or the associated report to the Customer and no undertaking is given by the Lender that a physical inspection has in fact been performed. Should the Customer wish to ascertain the market value or structural soundness of the Property, the Customer must engage a professional Engineer or Architect at the Customer's own cost. The Lender is under no obligation to accept a valuation obtained by the Customer.
10. Certificate by Land Surveyor
Should the Lender so require the Customer is to furnish the Lender with a certificate by a Land Surveyor confirming the location of the Property and the buildings thereon.
11. Bond registration
11.1. Within 10 (ten) days from the date of this agreement, the Customer is required to furnish all necessary documentation and particulars to the Conveyancers appointed by the Lender and sign all documentation when called upon to do so, to enable them to register the Bond.
11.2. This agreement is further subject to the Bond being registered within a reasonable time and the relevant information furnished to the Lender by the Customer not changing prior to the registration of the Bond.
11.3. Rates, taxes, sewerage installation costs and any other charges which may be owing to the Local Authority must be paid before the Bond is registered.
12. Cancellation by Lender
The Lender reserves the right to cancel this agreement by giving written notice thereof should any new, or previously undisclosed fact emerge, or should any circumstance prevent or unduly delay the registration of the Bond.
13. Receipts
In accordance with normal commercial practice, the Lender will not issue receipts for cheques received through the post or for payments made by bank stop orders and debit orders.
14. Settlement
The Customer is entitled to settle the amount outstanding in full in respect of this agreement at any time with or without advance notice to the Lender. The amount outstanding is the total of the
following:-14.1. the unpaid balance of the Principal Debt at the time;
14.2. the unpaid interest charges and all other fees, charges and insurance premiums payable by the Customer to the Lender up to the settlement date, and
14.3. an early termination charge equal to no more than the interest which would have been payable under this agreement for a period equal to the difference between 3 (three) months and the period of notice of settlement, if any, given by the Customer.
15. Termination by Customer
The Customer may terminate this agreement at any time by paying the settlement amount to the Lender.
16. Fees levied
The fees levied by the Deeds Office and the cancelling attorney in terms of the preceding 2 points, shall be for the Customer’s account.
17. Pre-payments
The Customer has a right to prepay any amount owed to the Lender under this agreement and the Lender shall accept any payment when it is tendered, even if that is before the date on which a payment is due. The Lender shall credit each payment made under this agreement to the Customer’s home loan account, as
follows:-17.1. first, to satisfy any due or unpaid interest charges; 17.2. second, to satisfy any due or unpaid fees or charges; 17.3. third, to reduce the amount of the Principal Debt.
18. Validity and severability
This Agreement will be valid and binding only once it has been signed by the Customer and accepted by the Lender. All the provisions of this Agreement and the Bond will be severable and no provision will be affected by the invalidity of any other provision. No term or condition of this Agreement may be amended.
19. Verbal and electronic communications
The Customer will be bound by any agreement recorded telephonically and/or any agreement electronically communicated between the Customer and the Lender.
20. Joint and several liability
Should there be more than one Customer under this agreement, then:-20.1. the liability of each Customer shall be joint and several;
20.2. all references in this Agreement to the “Customer” shall be construed as references to the Customers, jointly and severally, unless the context otherwise requires.
21. Companies, Close Corporations, Trusts or Associations
If the Customer is a Company, Close Corporation, Trust or an
Association:-21.1. all Directors, Members and Trustees must sign as sureties jointly and severally for the due repayment of all the obligations under this agreement;
21.2. a certificate which will be prepared by the Lender’s attorneys must be furnished to the Lender confirming that no Exchange Control Regulations have been contravened;
21.3. the Customer is required, if necessary, to produce proof that the relevant provisions (as amended) of the Companies Act 71 of 2008, the Close Corporations Act 69 of 1984 and the Trust Property Control Act 57 of 1988, have not been contravened and that this Agreement has been validly and properly accepted, agreed to and entered into by the juristic entity;
21.4. a duly signed Auditor’s/Accounting Officer’s Certificate is required which is to be in the format as set by the Lender;
21.5. the Customer is required to advise the Lender immediately of any change to the shareholding, directorship, membership or trusteeship.
22. Claims made against the property
The Customer is obliged to advise the Lender and keep the Lender advised of any developments in regard to a claim being made in respect of the Property, either under the Restitution of Land Rights Act or the Land Reform Act.
23. Title deeds and diagrams
On registration of the Bond, the Customer is required to deposit with the Lender the title deeds and diagrams of the Property, which documents will remain in the possession of the Lender until such time that the Bond is cancelled. For the duration of this agreement the Customer shall not further encumber the Property or any portion thereof, without the prior written consent of the Lender.
24. Default
Any of the following will place the Customer in default of this
agreement:-24.1. if the Customer fails to pay any amount due in terms of this Agreement or if any instrument issued by the Customer is dishonoured due to insufficient funds;
24.2. commits a breach of any other provision of this agreement, whether such breach is material or not; 24.3. if the amount owing by the Customer to the Lender exceeds the Principal Debt;
24.4. if the Customer does or omits to do or allows anything to be done which may, in any way, prejudice the Lender’s rights or security under this agreement or by which the Lender may suffer any loss or damage;
24.5. the Property is attached at the instance of another creditor;
24.6. the Property or any substantial portion thereof is expropriated or appropriated for whatever purpose;
24.7. the Property becomes an affected property as contemplated in the Community Development Act 3 of 1966, or any legislation substituting it;
24.8. the Customer being a Company, fails to comply with any provision of the Companies Act 71 of 2008 or for any reason becomes liable to be deregistered by the Registrar of Companies;
24.9. the Customer being a Close Corporation, fails to comply with any provision of the Close Corporations Act 69 of 1984 or for any reason becomes liable to be deregistered by the Registrar of Close Corporations;
24.10. the Customer being a Trust, fails to comply with any provision of the Trust Property Control Act 57 of 1988; 24.11. the Customer commits an act which is an act of insolvency within the meaning of Section 8 of the Insolvency Act
24 of 1936 (as amended);
24.12. the Customer takes any steps to surrender his/her estate or is provisionally or finally sequestrated;
24.13. the Customer, being a juristic person, is provisionally or finally liquidated, deregistered or placed under judicial management, whether provisional or final, or takes any steps for its voluntary winding up;
24.14. if the Customer fails to pay the rates and taxes on any property mortgaged to the Lender on time; 24.15. the Customer absconds or abandons the Property; or
24.16. if any property mortgaged to the Lender is a unit in a Sectional Title Scheme
and:-24.16.1. any part or the whole of the common property or the mortgaged section or mortgaged exclusive use area is expropriated or if the buildings are damaged or destroyed or, in terms of Section 95 of the Sectional Titles Act of 1997 as amended and the Sectional Titles Schemes Management Act, 2011, deemed to be destroyed, and the Customer received compensation therefore without paying such compensation in full to the Lender in reduction of the Customer’s indebtedness;
24.16.2. any part of the whole of the buildings are damaged or destroyed, or in terms of Section 95 of the Sectional Titles Act of 1997 as amended and the Sectional Titles Schemes Management Act, 2011 deemed to be destroyed, and the Customer receives no or, in the opinion of the Lender, inadequate compensation therefore and such part of the whole thereof is not reinstated to the satisfaction of the Lender;
24.16.3. the Customer fails to pay the levy and any additional insurance, if applicable;
24.16.4. the insurance effected by the Body Corporate is terminated without insurance to the satisfaction of the Lender being effected in its stead;
24.16.5. the Body Corporate, the managing agent or any of the owners or occupiers of sections in the buildings fail to comply with any of his/her obligations or to exercise any of his/her powers in terms of the Section 95 of the Sectional Titles Act of 1997 as amended and the Sectional Titles Schemes Management Act, 2011 or the Rules promulgated thereunder; or
24.16.6. in the opinion of the Lender the Body Corporate, the managing agent or any of the owners or occupiers of sections in the buildings, fail to provide adequately for the control, management, administration, use and enjoyment of the sections in the buildings and the common property in such a way as to affect the value of the Lender’s security.
24.17. If the Act applies and the Customer is in default under this agreement, then the Lender will draw the default to the Customer’s notice in writing, and will propose that the Customer refers this agreement to a Debt Counsellor with the intent to develop and agree on a plan to bring the payments under this agreement up to date. The Customer further has the right to approach an Alternative Dispute Resolution Agent, Consumer Court or Ombud with jurisdiction in order to resolve any dispute under this agreement. If the Customer is in default under the agreement which is being reviewed in terms of Section 86 of the Act and the review has not been finalised within 60 (sixty) business days after the date on which the Customer applied for the debt review, the Lender may give notice to terminate such review in the prescribed manner to the Customer, the Debt Counsellor and the National Credit Regulator. If the Customer is in default and has been in default under this agreement for at least 20 (twenty) business days and at least 10 (ten) business days have elapsed since the Lender delivered a notice to the Customer as stipulated in Section 86(10) or Section 129(1) of the Act, as the case may be, and if in the case of a notice as stipulated in Section 129(1), the Customer has not responded to that notice or responded to the notice by rejecting the Lender’s proposal, the Lender may then approach the Court for an Order to enforce or terminate this agreement.
24.18. Subject to the above clause, should the Customer be in default of this agreement then the Lender may at its
option:-24.18.1. claim immediate repayment of the full outstanding balance; or
24.18.2. terminate this agreement, upon which all amounts whatsoever owing to the Lender by the Customer shall then forthwith be payable in full.
25. Order declaring Property executable
Notwithstanding the exercise by the Lender of any rights granted to it in terms of this agreement, the Lender may institute proceedings for the recovery thereof and for an order declaring the Property immediately executable.
26. Surrender of policies or other security
Upon the Customer’s default, he/she hereby authorises the Lender to surrender or otherwise realise any policy of insurance or any other security which is ceded or made payable to the Lender as collateral security, and to appropriate any amount realised in reduction of the amount outstanding.
27. Cession of lease agreement
27.1. Should the Customer enter into any lease agreement over the bonded property, the Customer unconditionally cedes all his/her right, title and interest in and to any lease agreement over the Property to the Lender and the Lender mandates and, where so directed may compel, the Customer in his/her capacity as landlord to sue for arrear rental in the customer’s own name on behalf of the Lender;
27.2. Any rentals paid directly by the tenant to the Lender pursuant to any lease agreement over the Property will reduce the Customer's ordinary and usual liability on the mortgage loan to the Lender as follows:
27.2.1. first, to satisfy any due or unpaid interest charges; 27.2.2. second, to satisfy any due or unpaid fees or charges; 27.2.3. third, to reduce the amount of the Principal Debt.
28. Inspection of the Property and “For Sale” notices
If the Property is attached at the instance of the Lender or any other creditor, any prospective purchaser of the Property and the Lender acting through its servants, agents and nominees shall be entitled to inspect the Property, including the interior of any buildings thereon, at all reasonable times. Further, acting through its servants, agents and nominees, the Lender shall be entitled to exhibit “For Sale” notices on the Property.
29. Certificate of balance owing
A certificate purporting to be signed on behalf of the Lender shall be proof, until the contrary is proved, of the balance owing and the fact that it is due and payable, and the authority of the signatory or of the validity of the signature need not be proved.
30. Addresses for communication purposes
For purposes of this Agreement, the parties elect the following address details as well as address change and communication delivery
processes:-30.1. Postal addresses for all forms, documents, communications and notices - legal or otherwise which will be sent by registered or ordinary
post:-30.1.1. the Lender nominates the postal address reflected on the first page of this Agreement; 30.1.2. the Customer nominates the postal address reflected on the first page of this Agreement.
30.2. The Domicilium Citandi Et Executandi addresses that are to be the physical addresses for the service of all forms, documents, communications and notices in respect of any legal proceedings which may be instituted are nominated as
follows:-30.2.1. the Lender nominates the physical address of FNB Legal situated at 3rd Floor, 1 First Place, Bank City, Johannesburg, 2001;
30.2.2. the Customer nominates the physical address reflected on the first page of this Agreement.
30.3. The Customer nominates the e-mail address reflected on the first page of this Agreement in respect of all correspondence, including forms, documents, communications and notices - legal or otherwise.
30.4. Should the Customer fail to nominate an address, then the address of the Property shall be deemed to be the Customer’s nominated postal and physical address.
30.5. Notwithstanding the above, the Lender may use the Property as the Customer’s nominated postal and physical address and if more than one property is mortgaged, then any one of them.
30.6. Either of the Parties may change his/her above nominated address to another address by way of written notice to the other Party, provided that such notice is received by the addressee, at least 10 (ten) business days prior to such change taking effect.
30.7. Any notice given in terms of this agreement shall be in writing and shall be deemed to have been duly received by the
addressee:-30.7.1. if delivered by hand during normal business hours, on the date of delivery;
30.7.2. if posted by prepaid registered post, the notice will be regarded as having been received within 4 business days after posting by the Lender;
30.7.3. if sent by telefax, on the date of confirmation of the receipt generated by the telefax machine; 30.7.4. if sent by electronic mail, on the date on which such notice is transmitted.
31. Debt counselling
If the Act applies, the Customer may apply to a Debt Counsellor in the prescribed manner and form to have himself/herself declared over-indebted. An application in terms of Section 86 of the Act, may not be made in respect of, and does not apply to, a particular credit agreement if, at the time of that application, a credit provider under that credit agreement has proceeded to take the steps stipulated in Section 129 of the Act to enforce that agreement. A Debt Counsellor who has accepted an application must determine, in the prescribed manner and in the prescribed time, whether the Customer appears to be over-indebted, and if the Customer seeks a declaration of reckless credit, whether any of the Customer’s
credit agreements appear to be reckless. If a Debt Counsellor rejects an application then the Customer, with leave of the Magistrate’s Court, may apply directly to the Magistrate’s Court.
32. Complaints and disputes
The Customer has a right to refer a complaint which the Customer may have with the Lender to the Ombud with jurisdiction. If the Act applies, the Customer also has the right to file a complaint with the National Credit Regulator in respect of any alleged contravention of the Act and further has a right to make an application to the Tribunal for an order resolving a dispute over information held by a credit bureau, for an order compelling the delivery of a statement of account or review of a statement of account, for leave to bring a complaint directly before the Tribunal, or for an order condoning late filing.
33. Credit bureau
33.1. The credit bureau shall provide a credit profile of each Customer which will be shared with other credit providers. The Customer has the right to contact the credit bureau, have the record disclosed and correct inaccurate information.
33.2. The Lender shall give the Customer at least 20 (twenty) business days’ notice of its intention to submit adverse information concerning the Customer to a credit bureau.
34. Waiver
No extension of time, waiver or relaxation of any of the provisions or terms of this agreement shall operate as an estoppel against the Lender in respect of its rights under this agreement, nor shall it operate so as to preclude the Lender thereafter from exercising its rights strictly in accordance with this agreement.
35. The contact details of the Credit Bureaux, National Credit Regulator, Tribunal and Ombudsman Credit
Bureaus:-TransUnion - Tel: 0861 482 482 www.transunion.co.za
Experian Bureau (Pty) Ltd - Tel: 0861 105 665 www.experian.co.za
National Credit
Regulator:-Tel: 0860 627 627 www.ncr.org.za Tribunal:-Tel: (012) 294 1450 www.nct.org.za Banking Ombudsman:-Tel: 0860 800 900 www.obssa.co.za FAIS Ombudsman: Charles Pillay
Ground Floor, Baobab House
Eastwood Office Park, Lynwood Ridge, 0081 Telephone: 012 470 9080 Fax: 012 348 3447 www.faisombud.co.za
FNB Home Loans (a division of FirstRand Bank Limited, Reg. No. 1929/001225/06)
Customer Experience Department No. 1 Enterprise Road, Fairland, 2194 T: (011) 369-1115 / Email: [email protected]
or
The Regulatory Risk Manger / FNB FAIS LCO 3071
3rd Floor, 1 First Place, Bankcity Cnr. Simmonds and Pritchard Streets Johannesburg, 2001
T: (011) 371-3958 F: (011) 371-9613
36. FAIS complaints
Section 26(1)(a)(iii) of the FAIS Act defines a FAIS complaint as follows:
It must relate to a financial service rendered by a financial service provider or representative to the complainant on or after the commencement of the FAIS Act.
The grounds for the complaint can be summarised as follows:
a. The Complainant must have suffered a financial loss or is likely to suffer financial prejudice due to the Lender not complying with the FAIS Act.
b. The Complainant must have suffered a financial loss or is likely to suffer financial prejudice due to the Lender or its representative wilfully or negligently having given bad advice or service.
c. If the Complainant had been treated unfairly after lodging a complaint.
1. The Customer confirms that he/she has received and accepted a quotation and has received, read and understood the terms and conditions contained in the Pre-agreement Statement.
2. The Customer has read, understood and agrees to be bound by the terms and conditions of this agreement and the Bond to be registered over the Property. The Customer undertakes to sign all such documents as may be required to secure the Lender and pay all costs, charges and fees in connection with this agreement and the registration of the Bond.
3. The Customer agrees to the once-off and monthly costs, interest charges and fees as set out in this agreement being debited to his/her home loan account from the date of registration of the Bond.
4. The Customer agrees to be bound by any increase to the monthly service fee and any other fee or charge prescribed by the Act or any other applicable legislation at any stage during the term of this agreement.
5. The Customer hereby authorises the Lender to debit his/her current accounts, investment accounts, savings accounts, credit card accounts and any other home loan account held with the Lender, with any once-off or monthly cost, charge or fee as set out in this agreement for the duration of this agreement. The Customer agrees to be bound by any increase in the fees and/or charges as prescribed by the Act from time to time.
6. The Customer expressly renounces the benefit of the exceptions, revision of accounts, no value received, and where applicable, the right of a co-debtor to claim that all the other co-debtors be joined in any action, each for his/her proportionate share of the debt in question, i.e. that co-principal debtors shall first be excussed and that there shall be a division of the debt between co-principal debtors, and the Customer acknowledges to be fully acquainted with the contents of these exceptions and the effects of the renunciation thereof.
7. The Customer consents and authorises the Lender to transmit to the credit bureau all data relating to the application, opening and termination of this agreement and to obtain from the credit bureau all data relating to the Customer’s credit profile as permitted in terms of the Act. In the event of default by the Customer, he/she further consents and authorises the Lender to forward all relevant confidential information pertaining to him/her, to a third party including but not limited to credit bureaux, attorneys, debt collectors and tracing agents.
8. The Customer hereby confirms that all Exchange Control Regulations have been complied with, where applicable. 9. The Customer consents in terms of Section 45 of the Magistrates’ Courts Act, 32 of 1944, as amended, to the Lender
instituting any legal proceedings or enforcing any of its rights under this agreement and Bond registered in terms thereof, in the Magistrate’s Court of any district having jurisdiction in terms of Section 28(1) of the aforesaid Act, as amended. Notwithstanding the Customer’s consent as aforesaid, the Lender shall have the right to institute legal proceedings in any other competent Court having jurisdiction in the matter.
10. The Customer hereby confirms that he/she shall furnish the Lender with additional security in the form as required by the Lender should the existing security held by the Lender, be insufficient to cover the Customer’s total outstanding obligations to the Lender.
11. The Customer hereby confirms that he/she has disclosed to the Lender all relevant information relating to existing credit agreements, suretyships and current credit applications submitted to any other credit provider.
12. The Customer hereby confirms that unless specifically required by the Lender and stated in the Special Terms and Conditions of this agreement, he/she does not wish to take out life assurance on his/her home loan, and he/she fully understands the consequences of not holding adequate credit life or other life insurance cover.
13. The Customer hereby confirms that in the event of not availing of life assurance on this home loan, he/she has taken notice of the Lender’s recommendation contained in the Cost of Credit section of this agreement that recommends consideration be given to obtaining sufficient cover that will provide peace of mind should an insured event occur that may jeopardise future payments on this home loan.
14. The Customer certifies that he/she has not applied for debt review and/or is not under an existing administration order issued by a competent Court for the management of his/her debts.
15. The Customer certifies that, to the best of his/her knowledge and belief, the information herein provided to the Lender is true, accurate and complete. The Customer further certifies that his/her marital and/or legal status has not changed and further that his/her financial status has not deteriorated since the date on which he/she submitted his/her application to the Lender. The Customer undertakes to notify the Lender in writing should his/her financial, marital and/or legal status change during the Term of this agreement.
16. The Customer acknowledges that should he/she furnish the Lender with incorrect or false information, he/she may be denied the protection offered by the Act.
