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.”
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