Bond cancellations

When a property has been sold or when you would like to refinance your property with another lender, the current bond/s over the property will have to be cancelled. A bond can also be cancelled when the outstanding balance owing on your home loan has been paid up.

The process to cancel a bond, involves several steps:

  1. The bank receives a request for cancellation from the Seller or the Attorneys. Most banks require a 90-day notice period. To avoid any penalties being imposed, clients need to ensure their bank is notified as early as possible of their intention to sell or to settle the bond.
  2. The bank issues cancellation instructions to the attorneys stipulating all amounts required to settle the home loan account.
  3. The bank will then release the original Title Deed and Bond/s to the attorneys.
  4. When a property is being transferred, the transfer attorneys will receive the cancellation figures and are required to furnish the cancellation attorneys with a guarantee that the amount owing to the bank will be settled on day of the registration of the property into the new purchaser’s name.
  5. The Conveyancers will prepare the bond cancellation documents for lodgement. Once the guarantees are in place, the bond cancellation is ready to lodge at the Deeds Office.
  6. The bond cancellation is lodged at the Deeds Office. If the property is being sold, the transfer will be lodged simultaneously.
  7. The Deeds Office will register the cancellation of the bond, which means the property has been released from the lender as security and is now bond free.
  8. The final settlement amount is paid to the bank on the day the cancellation of the bond is registered.

To cancel a bond is a specialised service whereby the Bank will appoint attorneys to execute this task. This service incurs bond cancellation attorney fees.

At MM we have a BC department with dedicated staff members keeping high standards and who are consistent in the administration of our clients’ needs.

Should you need any additional information on bond cancellations, please contact us on info@miltons.law.za.