Banks require a 90 days notice period to cancel your bond!
PUBLISHED 29 MAY 2017
Did you know that a 90 day notice period is required by your bank to cancel your bond? This is an amount that is included with the settlement figure given to the transferring attorney and often you are not even made aware of it and it can be quite substantial – roughly three times your monthly bond payment as a worst case scenario! You should, therefore, remember to notify your bank in advance of the pending sale. This is in addition to the attorney requesting cancellation figures/letters of guarantee for the existing mortgage bond.
You may give this required notice yourself before the property is placed on the market or you can leave this task to your attorney but ensure that acknowledgement of the notice period has been received from the bank. If 90 days’ notice is received and the bank does not receive a request to cancel the bond (in other words the property has not been sold yet) within 6 months from this date, the 90 day notice will expire. If the property is still in the market after this period then be sure to again notify your bank accordingly.