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Lake Properties, Cape Town is a young and dynamic real estate agency located in Wynberg, Cape Town. We offer efficient and reliable service in the buying and selling of residential and commercial properties and vacant land in the Southern Suburbs including Bergvliet,Athlone,Claremont,Constantia,Diepriver,Heathfield,Kenilworth,Kenwyn,Kreupelbosch, Meadowridge,Mowbray,Newlands,Obervatory,Pinelands,Plumstead,Rondebosch, Rosebank, Tokia,Rondebosch East, Penlyn Estate, Lansdowne, Wynberg, Grassy Park, Steenberg, Retreat and surrounding areas . We also manage rental properties and secure suitably qualified tenants for property owners. Another growing extension to our portfolio of services is to find qualified buyers for business owners who want to sell businesses especially cafes, supermarkets and service stations. At Lake Properties we value our relationships with clients and aim to provide excellent service with integrity and professionalism, always acting in the best interest of both buyer and seller. Our rates are competitive without compromising quality and service. For our clients we do valuations at no charge

Difference between bond settlement and bond cancellation

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Let’s break down the difference between bond settlement and bond cancellation in a more detailed and practical way, especially in the South African property context:


πŸ”Ή 1. What is Bond Settlement?

✅ Definition:

Bond settlement is the financial act of paying off your outstanding home loan (bond) in full. This usually happens when:

  • You sell your property.
  • You decide to switch (refinance) your bond to another bank.
  • You want to be completely debt-free on your property.

🏦 How it works:

  • You ask your bank for a settlement figure. This amount includes:

    • The outstanding capital on your home loan.
    • Any accrued interest up to the settlement date.
    • Penalty interest if you didn’t give the required notice (usually 90 days).
    • Admin fees.
  • The settlement amount is paid:

    • From the proceeds of the sale of the property (by the transferring attorney).
    • Or by you directly, if you’re settling the bond without selling.

πŸ’‘ Important Notes:

  • Settlement is just paying the debt.
  • The bond is still registered against the property until formally cancelled.

πŸ”Ή 2. What is Bond Cancellation?

✅ Definition:

Bond cancellation is the legal process of removing the bond (mortgage) from the property’s title deed at the Deeds Office.

πŸ›️ How it works:

  • Once the bond is fully settled, the bank appoints a bond cancellation attorney.
  • This attorney prepares documents to deregister the bond from the Deeds Office.
  • The cancellation attorney works with the transferring attorney (if there’s a sale involved).

πŸ“‘ Documents involved:

  • Consent to cancellation from the bank.
  • Proof that the bond has been settled.
  • Other legal paperwork required by the Deeds Office.

πŸ’Έ Costs:

  • There are bond cancellation attorney fees (set by tariff).
  • These are usually paid by the seller, if the cancellation is part of a property sale.

πŸ“Œ Timeframe:

  • The bond cancellation process can take a few weeks.
  • Giving 90 days’ notice to the bank helps avoid early termination penalties.

🧾 Example Scenario:

You're selling your house:

  1. You notify the bank you're planning to cancel your bond.
  2. The bank gives a settlement amount.
  3. The transferring attorney ensures this amount is paid from the buyer’s funds.
  4. A bond cancellation attorney is appointed by the bank to handle the legal cancellation.
  5. After registration at the Deeds Office, the bond is officially removed from the property.

πŸ”Έ Key Differences Recap:

Aspect Bond Settlement Bond Cancellation
Main Purpose Paying off your home loan Removing the bond from the title deed
Type of Process Financial Legal / Administrative
Who Handles It You / Transferring attorney Bank-appointed bond cancellation attorney
Timing When the debt is paid (e.g. after sale) After the bond is fully paid
Costs Includes loan balance, interest, penalties Includes cancellation attorney fees
Involves Deeds Office? No Yes

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Difference between bond settlement and bond cancellation

Lake Properties                       Lake Properties Lake Properties                        Lake Properties Let’s break down th...

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