Buying a home: Steps to keep in mind

Buying a new home can be a complicated and time consuming process. It involves big decisions, many lawyers, numerous payments and a shockingly large sum of money. Because it can be such an intensely confusing process, we looked at the process of buying a home from start to moving in.

Step one

After finding a home you like, put in an offer to purchase for the amount of money you are comfortable paying after working out future payment costs using a bond calculator. If the seller accepts the offer, they sign and you apply for a bond at a bank.

Step two

The bank approves the bond and instructs the bond attorney to register the bond.

Step three

The seller asks the transferring attorney to transfer the property. The bank which currently has the property’s bond is asked for the title deed and cancellation figures (how much is required to settle the seller’s bond). The local authority is requested to provide a statement of rates and taxes.

Step four

The bond attorney tells the transferring attorney of the amount available for guarantees (cancellation costs) and asks for the draft deed of transfer and guarantee requirements.

Step five

The cancellation attorney is asked to cancel the seller’s bond on receipt of a guarantee for the cancellation costs owing.

Step six

The transferring attorney receives the title deed and cancellation figures. They send a copy of the transfer deed and the guarantee requirements to the bond attorney. They ask both you and the seller to sign the transfer documents. You pay the transfer costs and the transferring attorney pays the rates and taxes and the transfer duty.

Step seven

The bond attorney prepares the bond documentation. You sign the documentation and pay the costs. The bond attorney prepares and issues the guarantees, forwards them to the transferring attorney and prepares the bond documents for lodging in the deeds office.

Step eight

The transferring attorney receives the guarantees and forwards them to the cancellation attorney.

Step nine

The cancellation attorney gets consent from the bank which holds the bond to cancel the loan.

Step ten

After the documentation has been signed and costs paid, the transfer, new bond and cancellation documents are prepared by the respective attorneys for lodging in the deeds office.

Step eleven

The attorneys arrange for the documents to be lodged in the deeds office. It takes about two to three weeks for the documents to be checked before they’re ready for registration.

Step twelve

On the day the registration is issued, the bank pays out the loan. It will take about two to three months for registration and transfer.

Things to keep in mind:
• The sale could be delayed if all information and documentation are not provided.
• The same attorney can fill the role of bond, transferring and cancellation attorney.

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