General Concepts and Topics
Attorneys Involved
Transferring Attorney (Conveyancer)
- Monitors compliance with Agreement of Sale
- Monitors financial aspects
- Monitors procedural aspects, i.e. drafting of transfer documents, obtaining of certificates, Transfer Duty, co-ordinates lodgement, etc
Bond Cancellation Attorney
- Panel Attorney
- Notice of Cancellation and Penalty interest (subject-to-sale)
Bond Registration Attorney
- Panel Attorneys
- Various duties not within Transferring Attorney’s control
What is an Offer to Purchase (Caveat Subscriptor)
- There must be an offer and an acceptance of the Offer to Purchase – Offer to Purchase becomes Agreement of Sale / Purchase Agreement
- You cannot sign an Offer to Purchase electronically
- Once accepted:
- Valid Offer to Purchase comes into existence
- Cannot unilaterally cancel or amend the Offer to Purchase and both parties are bound by its terms and conditions
- Most OTP’s are generally standard and has to be tailored for each transaction
- Don’t accept or make verbal undertakings as it is unenforceable
- Everything must be in writing and signed by both parties (Non Variation Clause) as the Offer to Purchase normally contains an “entire agreement” Clause
Approval in Principle
- Can expedite the transaction
Bond Originator
- Can assist to expedite the transaction
- Ensures that the bond application is submitted expeditiously to various institutions
- Their services are free as they are remunerated by the bank