Property Law: Purchasing and bonding a property in a foreign currency
From time to time, foreign investors may wish to secure loans made to South African property owners by means of a mortgage bond and in some cases, the lenders requires the mortgage bond to reflect the amount of the loan in a format with which they are familiar, i.e. a foreign currency of their choice.
Similarly, a foreign purchaser may require that a property purchased in South African is concluded in a foreign currency. Allan West examines the situation where the parties insist that these amounts are reflected in foreign currency values in the deeds office. Read more.