Blog The Bond Process
Blog The Bond Process Blog The Bond Process

The Bond Process

March 21, 2023
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We fully appreciate that buying a property and the related steps of borrowing the purchase price from a bank and registering a mortgage bond can be intimidating. Having been nominated by the bank to register your bond, this newsletter serves to explain (in layman’s terms) our involvement in this process.

 

STEP 1: We receive instructions from the bank to register your bond.

 

STEP 2: Our bond department will contact you to confirm your personal and other details.

 

STEP 3: If it is your intention to take up the bond, we will send you an e-mail requesting various FICA documents so that the Attorney/Paralegal can draw up the bond documents. (Paralegals are experienced members of our staff who attend to our bonds and transfers under the supervision of a qualified Conveyancer. A Conveyancer is an Attorney who specialises in property law.)

 

STEP 4: We contact the attorneys who have been instructed to transfer the property from the seller to you. We will request a copy of the draft deed of transfer as well as their guarantee requirements. These technical steps are necessary to enable us to prepare our bond documents and to ensure that your loan is paid to the transferring attorneys in the manner required by them.

 

For instance, if the seller has an existing mortgage bond, part of your loan will go directly towards paying off that debt so that the bond can be cancelled.

 

STEP 5: Upon receiving the FICA and other documents, we will draft your bond documents after which, we will arrange an appointment for you to sign the bond documents before our conveyancer.

 

STEP 6: At the consultation our conveyancer will explain the bond documents to you and arrange for you to sign them. This appointment typically takes 1 hour. We will then forward bank guarantees (which we are authorised by you to issue) to the seller’s attorneys for their further attention. By this stage, you will be expected to pay our pro-forma account and these monies will be retained in our trust account until the registration of transfer.

Author: Nicola Drinn