GIVING NOTICE TO YOUR BANK FOR THE CANCELLATION OF YOUR BOND TO SAVE PENALTY FEES

Bond Cancellation and 90-Day Notice - What Sellers Must Know

If there is still a bond (home loan) registered over your property, the Seller must give their bank 90 days' notice to cancel the bond. This is important because the bank is allowed to charge early termination interest if you cancel before giving full 90 days' notice.
In short:

• You will be charged up to 90 days' worth of interest on your outstanding loan amount if the bond is cancelled too early.

• If you give notice and then sell the property, you save money by avoiding or reducing these penalties.

Important Note About Access to Bond Funds

Once your bank sends the final bond cancellation figures to the bond cancellation attorneys:

·       Any available funds or access facility on your bond account will be frozen.

·       You will not be able to withdraw any more funds from your bond.

So please withdraw any money you need before the attorneys request cancellation figures from the bank.

To Speed Up the Process

When completing the sale agreement, make sure you fill in your bond account number on the contact information sheet attached to the agreement.
This helps avoid delays.

Pro Tip: Give Notice Early

It is a good idea to give notice to your bank while the property is still on the market.
That way, the 90-day period can run during the marketing phase, so there is no delay when the property is sold.

If you prefer to delay the transfer until after the penalty period ends, you must make this a condition in the sale agreement.