Beware bond cancellation fees

CAPE TOWN (July 8) - Unless bond-holders gives the lender 90 days written warning of their intention to cancel their bonds – usually as a result of paying up the debt - they are forced to pay substantial mandatory fees, warns Tony Clarke, MD of Rawson Properties.

“On average it takes 60 days to service a bond cancellation and 60 days to register it – so the message to sellers is that to avoid heavy fines they must issue notice of intent to cancel well in advance. If the sale does not go through, the bank can then be informed that the cancellation has been annulled.”
Loading comments
More news articles
news
Guidelines to securing a home loan
29 May 2018
Many young South Africans are working hard to achieve their dream of purchasing their first home. However, the process can be challenging due to the daunting application process, which can take up to 2 years and is often enough to discourage prospective buyers.
read more
news
Things you should consider before upgrading to a new home
23 Apr 2018
The thing about the property ladder is that at some point in our lives we all have reason to want to climb a rung or two higher. Sometimes, it’s because we’ve outgrown our previous dream home, or because we want to be in a better neighbourhood that’s closer to work or to schools. Sometimes it’s because our circumstances have changed, and we’re taking care of elderly parents or relatives. Sometimes, it’s just because we want a property that reflects the financial status our hard work has won.
read more