Home Buyers Info - Mortgage Bond / Home Loan Process in South Africa

Without a doubt, purchasing a home and registering a mortgage bond can be a long, stressful process. Your Bonus Bonds consultant is available to guide you through the process, and make your home purchase go smoothly and hassle-free.

Bond Registration - The Players
When transferring a property, there are a number of people involved in the process.
- The Home Buyer (that's you!)
- The Home Seller
- The Real Estate Agent

There are also a number of attorneys involved, although sometimes the same attorney can be responsible for handling various transactions. This can greatly speed up the process.
- The Transferring Attorney is appointed by the Home Seller to transfer the property into the Home Buyer's name
- The Bond Attorney is appointed by the bank which grants the home loan bond
- The Cancelling Attorney is appointed by the bank, and is responsible for cancelling the home loan bond of the seller

The entire process of registering and transferring a property can often take over 3 months. Your Bonus Bonds consultant will work with you to help speed up the process as much as possible. Here is a rough guideline of the steps involved in your home purchase:

1. Offer To Purchase - First the Home Buyer applies to a bank for a home loan. The offer is then signed by both the seller and the buyer.

2. Bond Approval – The Bank then approves the home loan and instructs the Bond Attorney to start registering the bond.

3. Property Transfer – The Seller gives the go-ahead to the Transferring Attorney to transfer the property. The Bank which currently holds the bond provides the title deed and cancellation figures. The rates clearance certificate is then requested from the local authority.

4. Bond Attorney Contacts Transferring Attorney - The Bond Attorney requests the draft transfer deed and guarantee requirements from the Transferring Attorney, and informs him of the amount available for guarantees.

5. Cancellation Attorney – The Cancellation Attorney is then requested to cancel the home seller’s bond once he receives a guarantee for the outstanding amount.

6. Transferring Attorney – The Transferring Attorney then receives the title deed and cancellation figures from the Cancellation Attorney. The Seller and the Buyer both sign the transfer documents. The Buyer pays any transfer costs and the Transferring Attorney then pays the transfer duties, rates, and taxes.

7. Bond Attorney – The Bond Attorney prepares all bond documentation. The Home Buyer signs the bond documents and pays the fees. The Bond Attorney then lodges the Bond document with the Deeds Office.

8. Transferring Attorney – The Transferring Attorney receives guarantees from the Bond Attorney and then forwards the guarantees to the Cancellation Attorney.

9. Cancellation Attorney – The Cancellation Attorney then gets consent for the cancellation of the bond from the Seller's bank.

10. Deeds Office – New bond and cancellation documents are prepared for lodgement at Deeds Office once all documentation has been signed and fees paid.

11. Deeds Office - All documents are registered by all the attorneys on the same day, then the documentation is lodged and checked.

12. Bank Releases Home Loan – The bank pays out the home loan on the day of registration.

Sound complicated? Don't worry, your Bonus Bonds consultant will guide you through the process and do whatever is possible to speed up the process. There are also a number of things you can do to make it all go quicker:
- Get pre-approval for a home loan. Your Bonus Bonds consultant can help you with this, as well.
- Pay any bond and transfer costs, as well as your deposit (if any) on time.
- Be sure to provide any requested financial and personal information in a timely manner.
- Comply with all bank requirements, and sign any documents when requested.