Most sales of property require the purchaser to obtain finance
by way of a loan. The sale agreements, which are generally subject
to the purchaser obtaining a loan, usually from a bank or other
financial institution, almost always provide that payment of all or
portion of the purchase price must be secured by one or more
guarantees, which will probably be issued by the entity that has
granted the loan. Many of these guarantees are payable on the
fulfilment of certain conditions. Always included is the transfer
of the property, cancellation of any existing mortgage bond/s over
the property and registration of a new mortgage bond over the
property in favour of the lender.
The issuing of a guarantee does not mean that the transaction
will be finalised and that the seller will be paid. A lender could
for example withdraw from the guarantee if:
