Banks require a 90 day's notice period to cancel your bond!

Did you know that a 90-day notice period is required by your bank to cancel your bond? If no notice is given, an early termination penalty fee is charged, and this amount is usually included in the settlement figure given to your transferring attorney and often you are not even made aware of it and it can be quite substantial - roughly 3 times your monthly interest payment as a worst-case scenario!

 

You should, therefore, when considering selling your home, immediately notify your bank that you are going to sell your property and settle your bond upon transfer to the new owner. The bank must then acknowledge receipt of this notice in writing to you as proof of your notification.

 

This is not a difficult process to follow and all you have to do is phone the bond department of your bank and provide them with the details and they will confirm this in writing to you.

 

Also keep in mind that if the notice is given and the property is still not sold within 6 months from the date the notice was given, the 90-day notice will expire and you have to notify them again.