Bond registration processes can be daunting and hard to understand, buying a home and registering a bond can be a long and complex process.

It helps to know the parties involved and the steps required for bond registration.

Parties involved in the sale or purchase of a property:

Seller

Estate Agent

Purchaser

Transferring Attorney

Bond Attorney

Cancellation Attorney

The same attorney could be appointed to handle all of the above transactions.

The Transfer Process

While the transfer process follows a series of successive stages, the time period involved varies considerably.

Generally, the following guidelines apply:

A cash transaction might take approximately 6 weeks in normal circumstances, including bond approval, approximately 8 weeks. If conditional upon the sale of the purchaser’s property (within 30 days), approximately 12 weeks.

Stage 1 – The Purchase

Property can be sold by way of a written Deed of Sale, signed by both the purchaser and the seller, as well as their spouses if they are married in community of property. Witnesses need to sign the Deed of Sale as well. A verbal contract for the sale or mortgage of fixed property is invalid.

The Deed of Sale must be carefully examined to ensure that it accurately reflects the parties’ full agreement, especially with regard to the amount payable, the method of payment, all verbal promises made by the seller or his estate agent, the incorporation of all special conditions to suit the parties’ particular needs and the time of the buyer’s physical occupation of the property (which may coincide with registration) and transfer of the property.

If physical occupation and transfer do not coincide, the deed of sale must specifically provide for occupational rental payable between the dates of occupation and transfer. If the sale is subject to the buyer obtaining a bond, this must also be specified in the deed of sale, as must the period within which bond approval must be obtained to avoid the deal being delayed indefinitely.

Stage one is finalised when the Agreement/Deed of Sale is concluded/signed between the purchaser and the seller, having been brought together by the estate agent.

Stage 2 – The Deposit

The purchaser makes an initial payment (deposit) and receives a copy of the Deed of Sale for his or her records as does the seller, most sellers and Agents will require a 10% deposit to be set down within approximately two weeks from signing. The % and time frame can vary a bit make sure to ask the agent what the requirement is. Simultaneously, the Transferring Attorney is furnished with the original Deed / Agreement of Sale, making it possible to draw up documents.

Stage 3 – Bond application and approval

The purchaser applies for a bond with a bank, usually, the client will have done a pre-approval but a bond originator is in most cases available if the development is new in the market. Alternatively, most agents will know of a bond originator that can be used if you need one. Once a bond has been granted by the bank, it advises the Bond Attorney to register the bond.

Also, if the seller is not in possession of an Electrical Clearance Certificate, this will need to be obtained.