All the time-con­sum­ing steps that fol­low af­ter your bond has been ap­proved

Weekend Argus (Saturday Edition) - - PROPERTY -

YOU’VE found your dream home, made an of­fer, it’s been ac­cepted and your bond has been ap­proved. It’s all ex­tremely ex­cit­ing, but a lot still has to hap­pen be­fore you can col­lect the keys and move in. The first thing you need to pre­pare your­self for is that the next part of the process takes some time.

“There is lots of pa­per­work and much com­mu­ni­ca­tion be­tween the var­i­ous in­ter­me­di­aries,” says Ca­reen McK­i­non, di­rect sales man­ager at ooba.

Ac­cord­ing to ooba’s statis­tics, it takes an aver­age of 69 work­ing days for a bond to go from granted to reg­is­tered.

The only ac­tion that should be re­quired on your part is to pay the rel­e­vant costs, and sign the trans­fer doc­u­ments and the bond doc­u­ments.

The bank that grants your bond will put you in touch with the at­tor­ney, who will let you know what you need to do.

In some in­stances, a buyer might want to move in be­fore trans­fer has gone through, and in oth­ers, the seller might still be liv­ing on the prop­erty when it has gone through. “In this case, the per­son in res­i­dence will have to pay oc­cu­pa­tional rent, which is agreed in the of­fer to pur­chase and calcu- lated by the at­tor­ney on a pro rata ba­sis,” says McK­i­non. “This rent should al­ways be paid through the at­tor­ney so that there can be no room for a mis­un­der­stand­ing.

“If the buyer moves in be­fore trans­fer goes through, it is ad­vis­able to hold off on any ma­jor ren­o­va­tions un­til the prop­erty is reg­is­tered in the buyer’s name. “It hap­pens very rarely, but there have been in­stances where the trans­fer does not go through for some rea­son, and then the buyer in­curs losses on ren­o­va­tions or re­pairs, so it’s best just to wait,” says McK­i­non. While you wait for the trans­fer to go through, it’s best to start putting money aside for your first bond re­pay­ment. “You can sig­nif­i­cantly re­duce the amount you end up re­pay­ing on your bond by putting in more than you are re­quired to pay each month,” says McK­i­non. “Once you’re in a new home, your ex­tra cash will be con­sumed with get­ting your house in per­fect shape.” An­other piece of ad­vice for new home­own­ers is that re­moval com­pa­nies charge more at the end of the month than at any other time.

From mak­ing an of­fer to prop­erty trans­fer – all the steps:

Step 1: You and the seller sign the of­fer to pur­chase.

Step 2: The bank grants your bond and in­structs the bond at­tor­ney to reg­is­ter it.

Step 3: The seller ad­vises the trans­fer­ring at­tor­ney to trans­fer the prop­erty. The ti­tle deed and can­cel­la­tion fig­ures are re­quested from the bank at which the cur­rent bond is held, and a state­ment of rates and taxes is re­quested from the lo­cal au­thor­ity.

Step 4: The bond at­tor­ney tells the trans­fer­ring at­tor­ney the amount avail­able for guar­an­tees and re­quests the draft deed of trans­fer and guar­an­tee re­quire­ments.

Step 5: The can­cel­la­tion at­tor­ney is asked to can­cel the seller’s bond upon re­ceipt of a guar­an­tee for the amount that is ow­ing.

Step 6: 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 the trans­fer duty.

Step 7: 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: Once the trans­fer­ring at­tor­ney has re­ceived the guar­an­tees, they are for­warded to the can­cel­la­tion at­tor­ney.

Step 9: The can­cel­la­tion at­tor­ney ob­tains con­sent for can­cel­la­tion from the bank which holds the seller’s bond.

Step 10: 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 lodge­ment in the deeds of­fice.

Step 11: All the doc­u­ments are lodged in the deeds of­fice by ar­range­ment with the at­tor­neys con­cerned.

The deeds of­fice takes about two to three weeks to check the doc­u­ments be­fore they are ready for regis­tra­tion by the at­tor­neys on the same day.

Step 12: 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.

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