Are you Confused and don’t know what to do or what the process entails of transferring the property from yourself to the purchaser?
Please do not stress as we are here to hold your hand.
If the Seller has an existing bond on his/her property (which means he/she has taken a bond to purchase the existing property or further bond for renovations) and is deciding to sell his/her property, then the following has to be done:-
- The seller will have to notify the bank that he/she has taken the bond with and tell them that the property is in the process of being sold.
- If you cancel your bond early either within a year or two of purchasing your property, the bank is allowed to levy a 1% penalty on the outstanding bond amount which is deducted on date of registration. This means that on a R500 000.00 bond, the penalty fee is R5 000.00.
- The bank will appoint an attorney to attend to the cancellation of the bond. The bank decides which conveyancing attorney will attend to the cancellation of the bond as they will know which attorneys are on the bond cancellation panel. The original title deed and mortgage bond will be forwarded to the cancellation attorneys.
- The cancellation attorneys will prepare a consent to cancellation and will enclose the original title deed when proceeding with lodgment to the deed’s office.
- The bank will forward the “cancellation figures” i.e. The exact amount still owing by the seller on his bond to the cancellation attorneys.
- When the property is registered in the name of the purchaser and the seller’s bond is cancelled, the bank will be paid the outstanding amount owing to the bond on date of registration from the purchase price and the balance of the purchase price will be paid to the seller.
- The seller is liable for the cancellation cost which gets paid to the cancellation attorneys on date of registration and this amount gets deducted from the purchase price before the seller receives the balance.
- Should the attorneys not be same to attend to the transfer and cancellation of the bond, then the transferring attorneys must correspond closely with the cancellation attorney to ensure that the transfer documents and the cancellations documents are lodged in the Deeds Office simultaneously.
- Please note that although your bond is paid up and it’s a NILL balance, you still have to cancel the existing mortgage bond at the Deeds Office and this is included in the cancellation attorneys fees.
HOPE THIS BLOG HELPED YOU. DON’T STRESS – WE ARE HERE TO HELP YOU TO HAVE A FREE-FLOWING TRANSFER OF YOUR PROPERTY
Written by Annette Pillay.