Three (3) attorneys is involved during the bond registration process:
- Bond Attorneys – appointed by the bank
- Transfer Attorney – appointed by the seller
- Cancellation Attorney – appointed by the bank
Step 1: Registering, Transferring & Cancelling the bond
During the first step, the bank that is registering the bond appoints a Bond Attorney. They request a draft deed and guarantee requirements that are provided by the Transfer Attorney.
The Transfer Attorney, appointed by the Seller to transfer the property into the buyer’s name, requests documents from the Cancellation Attorney.
This information is then forwarded to the Bond Attorneys, which allows them to draft the bond documents.
Step 2: Buyer & Seller signs documents
As soon as the Bond Attorney has finished drafting the bond documents, it needs to be signed by the Seller and the Buyer.
Step 3: Buyer pays transfer costs
After the bond documents have been signed by both the Buyer and the Seller, the Buyer is then requested to pay the transfer costs. As soon as the transfer costs have been paid, the Transfer Attorney pays the necessary rates & taxes allowing them to get a rates clearance certificate.
The Transfer Attorney also pays the Transfer Duty. This is a legal process and will allow the transfer to commence.
Step 4: Bond Documents
Another set of bond documents is drafted and the Buyer is required to sign these documents as well as forward the guarantees to the Transfer Attorneys. They will, in turn, forward the documents and guarantees to the Cancellation Attorneys. This will allow the Cancellation Attorneys to request consent to cancel the bond at the Seller’s bank.
Step 5: Bond Costs
When the Bond Attorneys receives notification that the bond will be cancelled at the Seller’s bank, the Buyer is then requested to pay the bond costs to the Bond Attorneys.
Step 6: Lodgment of documents
When all the necessary documents are signed and all necessary costs have been paid, the Bond, Transfer and Cancellation Attorneys lodge the bond documents simultaneously to the Deeds Office.
Step 7: Deeds Office
As soon as the documents have been lodged by the Bond, Transfer & Cancellation attorneys, the Deeds Office starts to process the documents before the registration can take place.
This can take approximately between 7 – 10 working days.
Step 8: Payment & Registration of Bond
Payment of the guarantees are made on the same of bond registration after the documents have been processed by the Deeds Office.
Keep the following in mind
The bank and Seller can appoint the same attorney as the Bond, Transfer & Cancellation Attorneys
The bond registration typically takes anything between 8 to 12 weeks. Delays may occur due to a lack of information which the Deeds Office might request.
Reasons why delays may occur:
- The Seller and/or Buyer may not provide sufficient personal information
- The Seller may not provide information regarding his/her bank that is holding the existing bond
- The current bond holder of the property may not provide the cancellation figures and/or Title Deeds to the Transfer Attorneys
- A delay from local authorities to provide rates figures and/or clearance certificates
- The Buyer not paying a deposit (if required), transfer and/or bond costs on time
- Delay in signing the transfer and/or bond documents by the Seller and/or Buyer.