2022 / 06 / 21
| RECEIVE BOND INSTRUCTIONS (1 DAY)Bond Registration Attorney (“BRA”) receives instructions from the Bank to attend to the bond registration on behalf of the Purchaser/Mortgagor. CONTACT CLIENT (1 DAY) Purchaser/Mortgagor is contacted within 12/24 hours and a pre-loan agreement is forwarded to the Purchaser/Mortgagor for his/her/its perusal and signature. The BRA requests FICA in compliance with the bank’s requirements and the Financial Intelligence Centre Act from the Purchaser/Mortgagor. CONTACT TRANSFER ATTORNEY (1 DAY) The BRA requests the draft deed and guarantee requirements from the transfer attorney. WAIT FOR DRAFT DEED AND GUARANTEE REQUIREMENTS (1-20 DAYS) The draft deed and guarantee requirements can arrive within a week or sometimes it takes much longer, depending how far the transfer attorney is with his/her transfer. During this time the BRA will sort out and obtain the mortgagor’s life cover, if applicable, and obtains the Insurance Certificate from the Body Corporate or Managing Agents. The BRA will ensure that all special conditions of the bank are met. DRAFT BOND DOCUMENTS (2 DAYS) Upon receipt of the draft deed and guarantee requirements, the BRA proceeds to draft the bond documents. The Conveyancer is responsible for the correctness and validity of the information contained in the bond registration documents. CLIENT TO SIGN BOND DOCUMENTS (1-2 DAYS) The Purchaser/Mortgagor requested to sign the bond registration documents and pay the bond registration fees. Sometimes the clients are not available and this can take longer. Depending on the bank’s process, either before or after signing of the bond documents, the secretary will initialise a debi-check process which prompts the client to accept the debit order instruction via their cell phone. ISSUE GUARANTEES (1 DAY) The BRA will issue the guarantees and forward same to the transfer attorney. OBTAIN PROCEED FROM BANK (3 HOURS – 14 DAYS) Depending on terms and conditions of the bond, the bond documents, FICA, insurance documents, debit order, electrical compliance certificate and mortgage loan documents are uploaded on the bank’s system to be checked. If correct the BRA receives a “proceed” from the bank and then is ready to lodge. READY TO LODGE (UNCERTAIN DAYS) The BRA waits for the transferring attorney to arrange lodgement simultaneously in the Deeds Office. LODGEMENT, PREPARATION AND REGISTRATION (8-10 DAYS) The mortgage bond documents are lodged in the Deeds Office and are examined. If the documents are in order and there are no mistakes or notes and are not rejected, the Conveyancer executes the mortgage bond before the Chief Registrar and hands same in for registration. The mortgage bond documentation, the transfer and cancellation documentation are then all registered simultaneously. ADVISE BANK OF REGISTRATION (1 DAY) The BRA before 12h00, notifies the bank that the bond has been successfully registered and furnishes the bank electronically with the Authority for Payment. GUARANTEES PAY OUT (1 DAY) The guarantees are paid out by the bank within 24 hours of being notified of registration and the funds reflect in the transfer attorney’s trust account usually before 15h00 the next day. DELIVER DEEDS TO BANK Once the registered title deed and mortgage bond are returned to the transferring attorney by the Deeds Office and the transfer attorney forwards them to the BRA, the BRA returns the title deed and mortgage bond to the bank for safekeeping as security for the mortgage bond registered. The above is a brief guide and not an extensive lay-out of all the steps and time frames. The entire process should take between 30 – 90 days, failing any unforeseen circumstances and depending on the complexity of the bond |
