Part Two

Yesterday we looked at the first two steps that are involved in the purchase of a property, namely the signing of the Offer to Purchase contract and the role that the bond originator plays in obtaining finance for the mortgage. Following that the next five steps are involved in buying and registering a property.

  1. Finance Approval

Once the bank has approved the granting of your mortgage bond the agent or bond originator will notify you. The bond attorney will then be instructed to register the bond by the bank.

  1. Transfer Attorney

Usually the seller will appoint the attorney who will transfer the property into the buyer’s name, but most sellers will be open to nominations from the buyer should they have a valid reason for doing so.

The transfer or conveyancing attorney will obtain the title deeds and cancellation figures from the bank currently holding the bond as well as the statement of rates and taxes from the local municipality. Once these have been received both the buyer and the seller will need to sign the official transfer documents and the buyer will need to pay the transfer costs over to the attorney. Often the transfer costs are included in the bond loan amount, in which case the bank will pay these costs over.

  1. Cancellation Attorney

Another attorney that holds a very important function in the process of buying a house is the attorney that will handle the cancellation of the seller’s bond after receiving a guarantee from the bank that will be financing the new bond for the house. The transfer attorney will be responsible for this, so it will not be necessary to appoint another attorney.

  1. Bond Attorney

This attorney will be solely responsible for the bond documents, which the buyer will sign. The bond attorney will then prepare and issue the necessary guarantees and forward them to the transferring attorney, as well as lodge the bond documents at the Deeds Office.

  1. The Deeds Office

All the relevant attorneys will provide the bond attorney with the necessary documentation, which the bond attorney will then hand in simultaneously at the Deeds Office. These documents will then be checked and verified – which usually takes around two to three weeks – after which the property will be registered in the buyer’s name.

  1. The Bank

The final step in the process of buying a property is that occurs on the day of registration when the bank will pay out the amount according to the guarantees that have been issued, as well as the commission to the agent, if one has been employed, and transfer fees that are paid to the state.

At this part in the process there can be factors that stall or hinder it including failure by either the buyer or the seller to provide the necessary documentation, failure by the buyer to pay the required deposit or bond and transfer costs on time or failure by either party to sign the documents in good time.

It is easy to see when looking at the delicate balance of factors that contribute to the process of buying a house, how important it is to make sure that as a buyer your documentation and financing are organised meticulously.

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