Our bond has been approved: What happens next?
Category News
You've found your dream home and put in an offer. The offer-to-purchase agreement has been signed and your home loan has been granted after a nail-biting wait. This is an extremely exciting time, however the journey to being a homeowner involves a few more steps, and it's likely to be some time before you have the keys and move into your new home. The good news is that you'll have experienced lawyers acting on your behalf, and your Jawitz #RealPartner will explain everything step by step as you go through the process.
Getting the ball rolling
Once the seller has received proof that your home loan application has been successful, he or she must appoint a transfer attorney (also called a conveyancer). The transfer attorney will then need to get an assortment of paperwork together, including the cancellation figures on the seller's bond if they have one, as well as the rates, electricity, water and refuse removal clearance figures. If the property you are buying is a sectional title, the conveyancer will also need to get assurance from the body corporate that the seller's levies have been paid up to date. At this stage, both you and the seller will be asked for copies of your identity documents, and copies of your most recent rates, water and electricity accounts.
Preparing the transfer papers and payment of transfer duties
Once that is taken care of, the conveyancer will draw up the transfer papers, which both you and the seller will need to sign. At the time of signing, you will need to supply your original identity documents and income tax numbers. It is important to understand that if your personal income tax is not up to date, SARS will not allow your purchase of the property to go through. At the same time, the conveyancer will request a guarantee from the bond attorney, who will be appointed by the bank which granted you a home loan.
If the property you are purchasing comes with a price tag of R1 000 000 or higher, you will need to pay transfer duties at this stage. Even if your property falls within the transfer-duty-free threshold, you will still need to pay the transfer attorney for their services.
The bond cancellation process
Once the conveyancer receives the guarantee from the bond attorney, he or she will forward the papers to a cancellation attorney at the bank at which the seller's home loan is held. Once the cancellation lawyer receives these papers, they will send the original title deed for the property to the conveyancer. The seller's bank will then prepare the necessary paperwork to cancel the seller's bond. It is important to note that if you are selling property, you will need to give the bank 90 days notice.
Payments from transfer attorney
The conveyancer then needs to pay the transfer fee to SARS and wait for a receipt. At the same time, he or she will pay the final amounts outstanding for rates, utilities, levies and homeowners' association fees if applicable.
Getting the paperwork and certificates together
The next stage of the process involves the transfer attorney drawing up the papers for the transfer of the property and getting all the necessary documentation together. He or she will need to get an electrical compliance certificate from the seller, as well as gas, electric fence and entomologist certificates if applicable.
To the Deeds Office
Once all the documentation has been put together, it gets submitted to the Deeds Office. The transfer of the property, registration of your new bond and cancellation of the seller's bond take place simultaneously. After this, the transfer process is complete and the only thing left to do is move in and start unpacking.
While the transfer of property process can take time, the good news is that the proceedings will be handled by the relevant lawyers, and your Jawitz #RealPartner will be on hand to advise you every step of the way. Once it's all done and you are handed the keys to your new home, the months of waiting will soon become a distant memory. The Jawitz Properties team is always on hand to answer your questions, so contact us today.
Author: Jawitz Properties
