The difference between a bond registration attorney and a bond cancellation attorney

19 July 2022 , Tazné Adams 2139

When querying the cancellation of your bond, you may find that the transferring attorney then refers you to the bond cancellation attorney. To better understand the process, here is an explanation of the number of attorneys involved in the transfer of a property, and what the role of each is.

Three different attorneys all play an equally important roles in a property transfer, namely:
• The transferring attorney;
• The bond registration attorney; and
• The bond cancellation attorney.

For now, we will solely focus on distinguishing between a bond registration attorney and a bond cancellation attorney, as well as the various aspects each attorney deals with.

Once a purchaser applies for a home loan at a bank or any other financial institution to finance the purchase of their property and is successful in obtaining it, a bond registration attorney is appointed by that bank or financial institution for the registration of the new mortgage bond in the name of the purchaser.

This attorney acts in the interests of the purchaser, and the purchaser, in return, is required to pay a fee charged according to the Legal Practice Council’s conveyancing fees guidelines, for the services the bond registration attorney provides.

A bond cancellation attorney is similarly appointed by a bank or other financial institution. However, in this instance, they are responsible for the cancellation of an existing mortgage bond over a property. The bond cancellation attorney also provides this service at a fee charged according to the Legal Practice Council’s conveyancing fees guidelines, for which the seller is responsible, and acts in the interests of the seller and the bank or other financial institution.

A bond cancellation attorney is not only appointed by a bank or other financial institution in the event of a property transfer. They may also be appointed where a client has settled his or her bond for a property in full and wishes to cancel it to be free of the bond.

Each attorney will require their own set of documents to be lodged in the Deeds Office for registration. However, these attorneys are required to work together to ensure a smooth-running property transfer for lodgement to take place in the Deeds Office simultaneously.

Should you have any questions about this process, or will need the services of a bond registration or bond cancellation attorney, you are welcome to reach out to our specialist team for assistance.

Disclaimer: This article is the personal opinion/view of the author(s) and is not necessarily that of the firm. The content is provided for information only and should not be seen as an exact or complete exposition of the law. Accordingly, no reliance should be placed on the content for any reason whatsoever and no action should be taken on the basis thereof unless its application and accuracy has been confirmed by a legal advisor. The firm and author(s) cannot be held liable for any prejudice or damage resulting from action taken on the basis of this content without further written confirmation by the author(s).

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