Are you a first-time buyer wondering how to register a bond? After weeks of scouring the property market, you’ve finally found the perfect dream house and couldn’t be more excited to make an offer. An intricate, regimented and lengthy process with many processes, procedures, fees and formalities—buying a house, apartment or piece of land is a big financial commitment, but also a very exciting one.
Parties involved in the bond registration process
If this is your first-time inquiring about a bond registration, it is important to get an understanding of all the different parties involved. There is the Seller, the Estate Agent, the Buyer, the Transferring Attorney (appointed by the seller to transfer the property into the buyer’s name), the Bond Attorney (appointed by the bank granting the bond), and then there is the Cancellation Attorney (appointed by the bank to cancel the current bond of the seller).
While it is common to have a separate bond, cancellation and transferring attorney, it is also common to have one conveyance attorney that deals with over one or all the above transactions. Here’s how to register for a bond in 8 easy steps:
1. Sign an offer to purchase—your first step would be to enter an offer to purchase which contains the terms and conditions of the property sale. You will need the offer to purchase to apply for the bond at the bank.
2. Bond approval—this can take up to six weeks, but once the bank has approved your bond, the bank will request that the bond attorney registers your bond.
3. Signing of property transfer documents—this is where the seller requests the title deed and cancellation figures from the bank and the rates and taxes statement to guarantee that the account is up to date.
4. Purchaser signs a loan agreement—the bond attorney will contact the conveyance attorney to inform on the amount available for guarantees. The bond attorney will also request the draft transfer deed and that the purchaser also signs the loan agreement.
5. Cancellation of the sellers bond—the conveyance attorney will then request the bond cancellation attorney to cancel the seller’s bond on receipt of a guarantee for the outstanding amount.
6. Buyer and seller signs the transfer documents—as soon as the bond attorney receives a copy of the title deed, guarantee and cancellation figures, the buyer and seller will both sign the transfer documents. The buyer will then pay the transfer costs to the attorney so that the attorney can pay the transfer duty, and rates and taxes.
7. Bond documents lodged at the deeds office—once signed and paid in full, they will lodge the documents at the deeds office. The deeds office will take up to three weeks before they register the bond.
8. The bank pays the loan—on the exact day they register the bond, the bank will pay out the loan.
While the 8 steps above are just a basic guide, there are many complex and time-consuming formalities that demand a lot of red-tape, which is why it is best to partner with an experienced conveyance attorney.