Bond Process

It might sound a little confusing to some people who are not familiar with the legal terms. However, the term bond represents a promise by a borrower to pay a lender their principal amount and usually interest on a loan should an individual not be able to afford to buy a property cash. In most cases, a purchaser is not aware of how the legal bond process works and it might be more confusing should there be more than one attorney firm that will be liaising with them. There are transferring attorneys which deal with the transfer of the current owners/ seller’s property, then there are bond attorneys which attend to the bond registrations of the property being bought by the purchaser. Both transactions happen simultaneously which need to be linked and registered at the deed’s office.  

During the bond registration process, a lot of administration and conveyancing knowledge is applied in order to ensure that the registration process runs smoothly and the bond is registered successfully within the time period that is given to attorneys by the bank when the instruction is received. A conveyancing secretary or paralegal that attends to bond registration is required to follow the process entailed from the date of instruction received until the bond registers into the purchaser’s name. This process briefly includes: 

• acknowledging the bank instruction from our vendor systems and attending to the necessary milestone actions
• contacting the purchaser to inform them that the attorney firm has received their bond instruction for that property they have purchased
• Liaison with transferring attorneys in order to get certain documentation and information in order to draft the bond documents
• Requesting certain FICA documents from the client/purchaser
• Ensuring that all the legal bond documents are signed by the clients in order to be send through to the bank for approval as per the conditions of the bond
• Once the approval is received from the bank, then the bond attorneys will now be in a position to arrange for simultaneous registration at the Deeds Office with the transferring attorneys.

Purchasers also play a huge rule in how the bond registration unfolds as they are required to efficiently provide certain documentation and information to the bond attorneys in order for them to ensure that all details are captured correctly when drafting the bond documents. Should all the required documents be received from both the purchaser and the transferring attorneys, then there shouldn’t be any issues and the bond registration process should proceed as normal up until registration takes place.