You’ve found the perfect dream house, you have put in an offer and it has been accepted! Congratulations! What’s next? The following takes some time to go through but it is important that you are aware of the steps that will now be followed:
Step 1: Picking A Property: The buyer puts in an Offer to Purchase which is accepted by the seller.
Step 2: Bond Approval: This can take some time and thus if you have Pre-Approval it will speed this process up. The Bond Attorney will be notified to register the bond once approval has been granted.
Step 3: Property Transfer: The seller has to inform the Transferring Attorney to transfer the property. The title deed as well as cancellation figures will be requested from the bank that currently has the bond on the property. A statement of the rates and taxes will also be requested from the local municipality.
Step 4: Bond Attorney to contact Transferring Attorney: The Bond Attorney will get in contact with the Transferring Attorney and advise the amount available for guarantees. The draft deed of transfer and guarantees will then be requested.
Step 5: Cancellation Attorney: A request will be sent to a Cancellation Attorney to cancel the seller’s bond once receiving the guarantee for the amount owing.
Step 6: Transferring Attorney: The transferring Attorney receives the title deed and cancellation figures and sends a copy of the deed of transfer and the guarantee requirements to the Bond Attorney. The Transferring Attorney requests the buyer and seller sign the transfer documents. The buyer pays the transfer costs and the Transferring Attorney then pays the rates and taxes and the transfer duty.
Step 7: Bond Attorney: The Bond Attorney prepares the bond documentation together with the relevant account. The buyer signs the documents and pays the costs. The Bond Attorney prepares and issues the necessary guarantees, forwards them to the Transferring Attorney and prepares the bond documents for lodgement in the Deeds Office.
Step 8: Transferring Attorney: Once the Transferring Attorney has received the guarantees, they are forwarded to the Cancellation Attorney.
Step 9: Cancellation Attorney: The Cancellation Attorney obtains consent for cancellation from the bank which holds the seller’s bond.
Step 10: Documents prepared for the Deeds Office: After all the documentation has been signed and the costs paid, the transfer, new bond and cancellation bond documents are prepared by the respective attorneys for lodgement in the deeds office.
Step 11: Deeds Office: All the documents are lodged in the Deeds Office by arrangement with the attorneys concerned. The Deeds Office takes approximately 2 – 3 weeks to check the documents before they are ready for registration by the attorneys on the same day.
Step 12: Bank pays out the loan: On the day of registration, the bank pays out the loan in accordance with the guarantees issued. Allow at least 3 months for the registration and transfer of the bond.
Factors that could delay the registration of a bond:
– Failure by the seller and/or buyer to provide personal information
– Failure by the seller to provide details of the bank holding the existing bond
– The existing bondholder delaying/not providing cancellation figures and Title Deeds to the Transferring Attorney
– Delay in receiving rates figures (local authority) and/or clearance certificate (Transferring Attorney)
– Failure by the buyer to pay a deposit (if required)
– Delay in the provision of guarantees
– Failure by the buyer to pay bond and transfer costs on time
– Delay by the seller in signing the transfer documents
– Delay by the buyer in obtaining government capital subsidy approval/employee subsidy documents for new bondholders and failure to comply with other requirements of the bank
– Delay by the buyer in signing transfer and/or bond documents
– When the Bond Attorney, Transferring Attorney and Cancellation Attorney are three separate firms