The Seller's mortgage loan must be settled and the bond cancelled on transfer.
Banks are entitled to three months' notice to cancel and they charge interest on the balance owing for those three months.
The transfer process usually takes about two months so it is essential that the notice to cancel is given BEFORE you sell and we at PLD will gladly do this on your behalf.
The banks require payment on registration of the full amount due when notice to cancel is received, PLUS INTEREST until registration. Any instalments paid during that period are refunded to you about two weeks after transfer.
Bond cancellation costs are approximately R6000-00 and are paid by the Seller. This amount will increase if there are more bonds.
Conveyancers Tip:
Sellers must give their mortgage bank 3 months' notice to cancel the bond. We at PLD could do this for you.
