You have finally found the perfect house for sale after weeks of checking property websites and driving up and down the city. Don’t let the bond registration process get in the way of your excitement. While all the jargon might be overwhelming, the best way to approach the process is step by step.
Who is involved in the bond registration process?There are a number of people that will be involved in the bond registration process. They are the buyer (you), the seller, the estate agent, a transferring attorney, a bond attorney and a cancellation attorney. There are some cases where one attorney can be responsible for the whole process. The transferring attorney is appointed by the seller. He will ensure that the property gets transferred to your name. The bond attorney is selected by the bank in charge of your bond while the cancellation attorney is appointed by die bank in charge of the seller’s bond.
Signing the offer to purchase
When you are sure you want to buy the house, you and the seller must sign an offer to purchase. The offer to purchase contains the terms and conditions of the sale of the property. You will need this document to apply for a loan at a bank. Apply at more than one institution to make sure you get the best deal. You can take care of this process yourself or use the services of a bond originator. A bond originator can negotiate with banks on your behalf to ensure you get the best offer and interest rate. The registration process usually takes about six to eight weeks. After the bank has approved your loan, the bank will ask the bond attorney to register a mortgage bond.
Transferring the property
At this stage the seller will ask the transferring attorney to transfer the property. The attorney will approach the bank to obtain the title deed and cancellation figures. The municipality will also be contacted to ask for a statement of rates and taxes. Upon receiving the guarantee of the outstanding amount the cancellation attorney will be requested to cancel the seller’s home loan. The transferring attorney will also request you and the seller to sign the transfer documents for the house for sale. You will now have to pay the transfer costs – the transfer attorney will then pay the transfer duty, rates and taxes.
The Mortgage Loan Agreement and rates of clearanceThe bond attorney, nominated by the bank to register the bond in their favour, will get the purchaser in to sign the Mortgage Loan Agreement and all other documents required as per the bank’s instruction to them. At this stage the bond attorney will be responsible for lodging the mortgage documents at the deeds office. The office will usually take about three weeks to issue the rates of clearance after all the documents are lodged by the attorneys.
The bank pays out the loanFinally, the bank will pay out the loan on the day of registration in accordance with the guarantees issued. The transfer attorney will usually contact you at this stage to confirm that you are now the owner of the house for sale!
The bank will also inform you about your monthly repayments which will generally be paid with a monthly debit order.
You might feel overwhelmed by all the necessary procedures. Most banks and home loan institutions will be happy to provide advice and assistance. Phone them regularly and make sure you know how the process is moving along. Most property websites supply links to guides with relevant information about the topic.