Learn About The Home Loan Process & Save Money
The typical Home Loan Process steps involved are:
The Purchase
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Seller and Buyer sign an offer to purchase
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The buyer contacts their nearest Bond office who will appoint a consultant to submit the application to the bank(s)
The Approval
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The bank approves the home loan and instructs the bond attorney to register a mortgage bond.
The Property Transfer
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The seller instructs the transferring attorney to transfer the property
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The title deed and cancellation figures are requested from the bank that holds the bond over the property
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A statement of rates and taxes is requested from the local authority
The Transferring Attorney
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The transferring attorney receives the title deed and cancellation figures, and sends a copy
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The transferring attorney asks the buyer and seller to sign the transfer documents
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The buyer pays the transfer costs
The Cancellation Attorney
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The cancellation attorney is requested to cancel the seller's bond on receipt of a guarantee for the amount owing
The Bond Attorney
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Bond attorney contacts transferring attorney
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The bond attorney advises the transferring attorney of the amount available for guarantees, and requests the draft deed of transfer and the guarantee requirements
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The bond attorney prepares the bond documentation together with the buyer
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The buyer signs the documents and pays the costs
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The bond attorney prepares and issues the necessary guarantees, forwards them to the transferring attorney, and prepares the bond documents for lodging at the Deeds Office
The Deeds Office
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All the documents are lodged simultaneously at the Deeds Office by arrangement with all the attorneys concerned
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The Deeds Office takes about two to three weeks to check the documents before they are ready for registration by all the attorneys on the same day
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The Bank
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On the day of registration, the bank pays out in accordance with the guarantees issued
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Allow at least three months for the registration and transfer of the bond
What could delay the registration of a bond?
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Failure by the seller and/or buyer to provide personal information
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Failure by the seller to provide details of the bank holding the existing bond
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The existing bond holder not providing cancellation figures and title deeds to the transferring attorney
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Delay in receiving rates figures from the local authority and/or clearance certificates
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Failure by the buyer to pay a deposit (if required)
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Delay in the provision of guarantees
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Failure by the buyer to pay transfer and/or bond costs on time
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The seller delays the signing of transfer documents
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The buyer delays obtaining employee income documents for new bondholders, and a failure to comply with other bank requirements
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The buyer delays the signing the transfer and/or bond documents