What are bank proceeds?

It is a common misconception that once a bond is granted, no further checks are done by the Bank who granted the bond. In reality, once the bond attorneys have drafted the bond documentation and signed the documents with the clients, the documents are uploaded electronically to the respective Bank for inspection and a “Proceed to Lodge”.

During this inspection phase the documents are checked for full signatures, accuracy, and compliance with any special conditions of the bond grant. This inspection phase takes, on average, 5 – 10 working days and is usually the last step before the transfer can be lodged in the Deeds Office.

Each Bank has different requirements which must be met before the proceed to lodge will be granted. Sellers & Purchasers can greatly decrease the time required to obtain these proceeds by providing all necessary documents as soon as requested by the respective attorneys. It is particularly important for the Seller not to delay in providing the Electrical Certificate of Compliance and, if required by the Bank, Purchasers to not delay in obtaining Life Insurance.

By Jack Bonner from Kruger Attorneys & Conveyancers Inc