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A Guide to Bond Registration |
Parties Involved in the Sale or Purchase of a Property
Seller
Estate agent
Buyer
Transferring Attorney (appointed by the seller to transfer
the property to the buyer’s name).
Bond Attorney (appointed by the bank receiving the bond).
Cancellation Attorney (appointed by the bank canceling seller’s
bond).
The same attorney could be dealing with more than one or
all of the above transactions.
Step 1 - Purchasing a Property
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 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
The Cancellation Attorney is requested to cancel
the seller’s bond on receipt of a guarantee for the
amount owing.
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 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.
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 prepares and issues the necessary
guarantees, forwards them to the Transferring Attorney and
prepares the Bond Documents for lodging at 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 a consent for
cancellation from the bank which 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 with
the Deeds Office.
Step 11 - Deeds Office
All the documents are lodged simultaneously in the Deeds
Office by arrangement with all the attorneys concerned.
The Deeds Office takes approximately two to three weeks
to check the documents before they are ready for registration
by all the attorneys on the same day.
Step 12 - Bank Pays Loan
On the day of registration, the bank pays out the loan in
accordance with the guarantees issued.
Allow at least three months for the registration and transfer
of the bond.
Factors that Delay the Registration of a Bond
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 delaying/not providing cancellation
figures and title deeds to the Transferring Attorney.
Delay in receiving rates figures (local authority) and/or
clearance certificate (Transferring Attorney).
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.
Delay the seller in signing transfer documents.
Delay by the buyer in obtaining government capital subsidy
approval/employee income subsidy documents for new bondholders
and failure to comply with other bank requirements.
Delay by the buyer in signing transfer and/or bond documents.
When the Bond Attorney, Transferring Attorney and Cancellation
Attorney are three separate firms.
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