Plan to selll a property...bond cancellation fees?

[curbs2012]

Hello everyone..

I am looking to sell a property but I am worried about bond cancellation fees. I know I can inform the bank that I intend to sell but will this help me reduce the fees? I dont have a set date for the sale and the bank works on a 90 day notice period. Failing which, you then start owing them money.. Can I get the attorneys to take care of this when they handle the sale?

Thanks in advance..

 

[rrh]

The bond is cancelled by the attorneys as part of the transfer.

I doubt if advising the bank of the sale will affect their charges.

 

[chrisc]

There is a set fee for Bond Cancellation of R 1750,00

 

[Jehosefat]

There is a 90-day notice period to avoid early cancellation penalty fees. If you cancel the bond without notice the bank can (and will) charge penalty fees equal to 90 days interest on the account. This decreases every day after you give notice that you intend to cancel so after 90 days notice there is no more penalty fee (if you give notice and cancel 30 days later, the penalty fee will be equal to 60 days interest on the account)

 

[Other Pineapple Smurf]

Hello everyone..

I am looking to sell a property but I am worried about bond cancellation fees. I know I can inform the bank that I intend to sell but will this help me reduce the fees? I dont have a set date for the sale and the bank works on a 90 day notice period. Failing which, you then start owing them money.. Can I get the attorneys to take care of this when they handle the sale?

Thanks in advance..

Just put it into your OTP clause that bond cancellation will only happen 90 days after the buyers bond has been approved. My seller was dragging his feet to do things on his part and I'm sure it was to prevent these fees, I had no problem because I was only prepared to pay the lawyers once everything was done

 

[curbs2012]

Thanks everyone..

 

[noxibox]

All my home loan contracts include no penalty for cancelling when the reason is selling the property, unless it is within the first 90 days after taking out the loan. If you want a definitive answer for your home loan I suggest you read the contract.