Your offer on your new dream home has been accepted and a bond secured. So, what comes next and when can you move into your new home?
Seeff gives some insight.
It is important to note that an Offer to Purchase (OTP) is a legally binding contract. It will include all the terms and conditions of the property transaction including “subject to” conditions such as the buyer securing a home loan at a stated amount, failing which the offer will lapse.
Once the bond is approved, i.e. you have accepted the offer and terms of the bond, the “suspensive conditions” are usually fulfilled and the transaction can move forward.
Attorneys appointed, and transfer process commences
The seller chooses the transferring attorneys who will now take responsibility for the transfer of the property into your name. This involves a host of activities, clearances and documents, obtaining the title deed and bond cancellation figures to clearance certificates such as rates and taxes, levy clearance (for sectional title), Electrical Certificate of Compliance (ECOC), Electric Fence System Compliance Certificate (if applicable), Plumbing Certificate, Gas Certificate (if applicable) and in some cases, a Beetle Infestation Clearance.
The bank will appoint a bond registration attorney. You will require a full set of documents for the transfer attorneys which would include your identity document, marriage documents (including any marriage contract such as an Ante Nuptial Contract).
You will also need to have your cash funds on hand which will need to be paid into the trust account of the transferring attorney. This will include the deposit (if applicable) as well as the transfer and/or transaction costs related to the purchase.
The Conveyancer will now prepare all the documents and make all the necessary payments including those that need to be paid for by the Seller such as clearance certificates etc. Once all the payments are made and the documents are in order, the Conveyancer will lodge the documents in the local Deeds Office where they will be inspected and approved. If everything is in order, the transfer will be registered.
Registration of transfer
The Transfer process usually takes about three months which gives you time to start preparing for the move to your new home. During this time, you can start planning your move including sourcing costs and a moving company or any new furniture that needs to be purchased. Don’t forget about window coverings such as curtains and blinds and check what you will need and the sizes of the windows in your new home.
You will also need a budget for basic service connections such as the Water and Electricity Account at the local council, telephone and data as well as any satellite television transfer or connections.
The conveyancer will advise the parties and the agent as soon as transfer is registered into the name of the buyer. The attorneys will usually finalise all financial arrangements with 24-hours. If you are a cash buyer, the title deed will be sent to you, but if you have a mortgage loan, it will be sent to the relevant bank.
Generally, occupation takes place upon registration of transfer. This is also when your bond repayments will commence.