The first-time home buyers’ introduction to bond registration

From signing the offer to purchase to the payment of your home loan, ooba’s easy guide takes you through the process of registering your bond in 12 simple steps.

After weeks, maybe months, of surfing property sites and pounding the pavements, you’ve finally found your dream home. What’s next?

Here’s our 12-step guide to understanding the jargon and registering your bond.

Step 1: Offer to purchase

The buyer and the seller sign the offer to purchase. The buyer applies for a bond with the bank.

Step 2: Bond approval

The bank approves the bond and advises the bond attorney to register the bond.

Step 3: Property 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 also requested from the local authority.

Step 4: 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 guarantee requirements.

Step 5: Cancellation attorney

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

Step 6: 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 requests the buyer and seller sign the transfer documents. The buyer pays the transfer costs and the transferring attorney then pays the rates and taxes as well as the transfer duty.

Step 7: Bond attorney

The bond attorney prepares the bond documentation together with the relevant account. The buyer signs the documents and pays the costs. The bond attorney then prepares and issues the necessary guarantees, forwards them to the transferring attorney and prepares the bond documents for lodging in the deeds office.

Step 8: Transferring attorney

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

Step 9: Cancellation attorney

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

Step 10: Documents prepared for the deeds office

After all the documentation has been signed and the costs paid, the transfer, new bond and cancellation bond documents are prepared by the respective attorneys for lodging in the deeds office.

Step 11: Deeds office

All the documents are lodged in the deeds office by arrangement with the attorneys concerned. The deeds office takes approximately two to three weeks to check the documents before they are ready for registration by the attorneys on the same day.

Step 12: Bank pays out the loan

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