N2. Bond Registration Process

Who is involved in the bond registration process?

  • the seller
  • an estate agent
  • the buyer
  • a transferring attorney (appointed by the seller to transfer the property to the buyer’s name)
  • a bond attorney (appointed by the bank receiving the bond)
  • a cancellation attorney (appointed by the bank cancelling the seller’s bond)

Note: The same attorney could deal with more than one or all of the above transactions.

Steps to registering a bond:

  • Buy a property

The buyer and the seller sign an offer to purchase.

The buyer applies for a home loan through their bank or bond originator.

  • Bond approval

Approve the home loan and request the bond attorney to register a continuing covering mortgage bond.

  • Property transfer

The seller advises the transferring attorney to transfer the property.

The title deed and cancellation figures are requested from the bank which holds a bond over the property.

A statement of rates and taxes is requested from the local authority.

  • Bond attorney contacts transferring attorney

The bond attorney advises the transferring attorney of the amount available for guarantees and requests the draft deed of transfer and the guarantee requirements.

  • Cancellation attorney

The cancellation attorney is requested to cancel the seller’s bond on receipt of a guarantee for the amount owing.

  • 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 asks 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 transfer duty.

  • Bond attorney

The bond attorney prepares the bond documentation together with the buyer.

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 lodging at the Deeds Office.

  • Transferring attorney

Once the transferring attorney has received the guarantees, they are forwarded to the cancellation attorney.

  • Cancellation attorney

The cancellation attorney obtains consent for cancellation from the bank that holds the seller’s bond.

  • Documents prepared for the Deeds Office

After all, the documents have been signed and the costs paid, the transfer, new bond and cancellation bond documents are prepared by the respective attorneys for lodging with the Deeds Office.

  • Deeds Office

All the documents are lodged simultaneously at the Deeds Office by arrangement with all the attorneys concerned.

The Deeds Office takes about two to three weeks to check the documents before they are ready for registration by all the attorneys on the same day.

  • Bank pays loan

On the day of registration, the bank pays out in accordance with the guarantees issued.

The transferring attorneys pay out the respective parties.

 

Allow at least three months for the registration and transfer of the bond.

Things that delay bond registrations

Delays could be caused by:

  • 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 not providing cancellation figures and title deeds to the transferring attorney.
  • Receiving rates figures from the local authority and/or clearance certificates.
  • Failure by the buyer to pay a deposit (if required).
  • Delay in the provision of guarantees.
  • Failure by the buyer to pay transfer and/or bond costs on time.
  • The seller delays the signing of transfer documents.
  • The buyer delays obtaining government capital subsidy approval or employee income subsidy documents for new bondholders, and a failure to comply with other bank requirements.
  • The buyer delays signing the transfer and/or bond documents.
  • Other unforeseen circumstances.

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