Who is Involved in the bond registration process?
– The Seller
– An Estate Agent
– The Buyer
– Transferring Attorney (appointed by the seller to transfer the property to the buyer)
– Bond Attorney (appointed by the bank providing the bond)
– Cancellation Attorney (appointed by the bank to cancel the seller’s bond)
Note: One attorney may handle multiple roles in the process.
Steps to Registering a Bond:
- Buy a Property
– The buyer and seller sign an offer to purchase.
– The buyer applies for a home loan through a bank or bond originator.
- Bond Approval
– The bank approves the home loan and requests the bond attorney to register a continuing covering mortgage bond.
- Property Transfer
– The seller notifies the transferring attorney to initiate the property transfer.
– The title deed and cancellation figures are requested from the bank holding the current bond.
– A statement of rates and taxes is requested from the local authority.
- Bond Attorney Contacts Transferring Attorney
– The bond attorney informs the transferring attorney of the available guarantee amount and requests the draft deed of transfer and guarantee requirements.
- Cancellation Attorney
– The cancellation attorney is tasked with canceling the seller’s bond upon receiving a guarantee for the owed amount.
- Transferring Attorney
– Receives the title deed and cancellation figures, and sends the deed of transfer and guarantee requirements to the bond attorney.
– Requests signatures from the buyer and seller on the transfer documents.
– The buyer pays transfer costs, after which the transferring attorney pays rates and taxes as well as transfer duty.
- Bond Attorney
– Prepares bond documentation with the buyer.
– The buyer signs the documents and pays associated costs.
– Prepares and issues necessary guarantees, sends them to the transferring attorney, and readies bond documents for lodging at the Deeds Office.
- Transferring Attorney
– Forwards received guarantees to the cancellation attorney.
- Documents Prepared for the Deeds Office
– All signed documents and payments are prepared for lodging with the Deeds Office.
- Deeds Office
– Documents are lodged simultaneously by all involved attorneys.
– The Deeds Office takes approximately two to three weeks to check the documents before they can be registered on the same day.
- Bank Pays Loan
– On the registration day, the bank disburses funds according to the guarantees issued, and the transferring attorney distributes the funds to the respective parties.
Allow at least three months for the registration and transfer of the bond.
Common Delays in Bond Registrations:
Delays may arise due to:
– Seller or buyer not providing necessary personal information.
– Seller failing to disclose details of the bank holding the existing bond.
– Existing bondholder not providing cancellation figures and title deeds.
– Delays in receiving rates figures and clearance certificates from the local authority.
– Buyer not paying required deposits on time.
– Delays in providing guarantees.
– Buyer failing to pay transfer or bond costs promptly.
– Seller delaying the signing of transfer documents.
– Buyer delaying government capital subsidy approval or compliance with bank requirements.
– Buyer postponing the signing of transfer or bond documents.
– Other unforeseen circumstances.