When purchasing your property there are many parties involved, namely, the seller, the estate agent, the transferring attorney (appointed by seller to transfer the property to your name), the bond attorney (appointed by the bank granting the bond) and the cancellation attorney (appointed by the bank cancelling the bond of the seller). The same attorney could be dealing with more than one or all of the above transactions. You have identified your property and are ready to start! This could have been with the help of an estate agent or a private sale.
Step 1: Purchasing a property
You will sign an offer to purchase at the price that you are prepared to pay. If accepted by the seller, you then need to apply for a bond with a bank to arrange your finance. Wizard will take care of the hassle and apply for the bond on your behalf.
Step 2: Bond Approval
After the loan has been approved, it takes approximately 3 days for the bank to instruct the attorney to proceed with the registration of 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 upon 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 requests 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 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 prepares and issues the necessary guarantees, forwards them to the Transferring Attorney and prepares the bond documents for lodgement 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 to cancellation from the bank which holds the seller's bond.
Step 10: Documents prepared for the Deeds Office
On completion of compilation of the documents by the attorneys, the documents are lodged simultaneously for registration. After +/- 10 working days from being lodged, the transaction is usually registered.
Step 11: Deeds Office
After receipt of the documents, the Deeds Office checks the documents before they are ready for registration.
Step 12: Bank pays out the loan
On the day of registration, the bank pays out the loan in accordance with the guarantees issued. Allow at least 3 months for the registration and transfer of the bond.
Pitfalls that delay the registration of your 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
Failure by the buyer to pay a deposit (if required)
Delay in the provision of guarantees
Failure by the buyer to pay bond and transfer costs on time
Delay by the seller in signing the transfer documents
Delay by the buyer in obtaining government capital subsidy approval/employee subsidy documents for new bondholders and failure to comply with other requirements of the bank
Delay by the buyer in signing transfer and/or bond documents when the Bond Attorney, Transferring Attorney and Cancellation Attorney are three separate firms
Do you have questions about home loans?
Calculate what you can afford
Before looking for your home, it benefits you to know what you can afford and how much a property will cost you in terms of bond repayments and the total cost of the loan.
Calculate bond and transfer costs
This calculator allows you to determine the costs associated with the purchase of property and those costs related to the registration of the home loan.
Get a good picture of your bond
This calculator will give you a picture of how much your loan reduces by every month, over the full period of the loan - how much of your installment goes towards interest and how much towards reducing the actual loan amount.