When purchasing your property there are many parties involved, namely:
the seller,
the estate agent,
the transferring attorney (appointed by seller to transfer the property to your name),
the bond attorney (appointed by the bank granting the bond) and
the cancellation attorney (appointed by the bank cancelling the bond of the seller).
The same attorney could be dealing with more than one or all of the above transactions.
Step 1: Offer to Purchase
You will sign an offer to purchase at the price that you are prepared to pay. If accepted by the seller, you then need to apply for a bond with a bank to arrange your finance. Bond Partner will take care of the hassle and apply for the bond on your behalf.
Step 2: Bond Approval
After the loan has been approved, it takes approximately 3 days for the bank to instruct the attorney to proceed with the registration of the bond.
Step 3: Instruction to Transfer
The seller advises the Transferring Attorney to transfer the property. The title deed and cancellation figures are requested from the bank which currently has a bond over the property. A statement of rates and taxes is requested from the local authority.
Step 4: Guarantees
The Bond Attorney advises the Transferring Attorney of the amount available for guarantees and requests the draft deed of transfer and guarantee requirements.
Step 5: Cancellation of Sellers Bond
The Cancellation Attorney is requested to cancel the seller’s bond upon receipt of a guarantee for the amount owing.
Step 6: Transfer Documents
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 to 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 Documentation
The Bond Attorney prepares the bond documentation together with the relevant account of costs. 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: Forward Guarantees
Once the Transferring Attorney has received the guarantees, they are forwarded to the Cancellation Attorney.
Step 9: Cancellation of Sellers Bond
The Cancellation Attorney obtains consent for cancellation from the bank which holds the seller’s bond.
Step 10: Documents prepared for Deeds Office
On completion of compilation of the documents by the attorneys, the documents are lodged for registration. After +/- 10 working days from being lodged, the transaction is usually registered.
Step 11: Deeds Office
After receipt of the documents, the Deeds Office checks the documents before they are ready for registration.
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.