Lake Properties Lake Properties
Let’s go deeper and break it down clearly step by step for South Africa:
✅ What Happens When Your Bond Is Paid Up
When you’ve paid your last instalment, the bank will issue a bond paid-up letter confirming the account has a zero balance. But that doesn’t mean the bond is automatically cancelled at the Deeds Office — the bond remains registered against your property until you take the next step.
๐ Your Options
Option 1: Leave the Bond at the Bank
- The bank keeps the bond registered at the Deeds Office.
- Your title deed remains with the bank (in digital storage since SA went paperless in 2019, but you can still get a copy).
- You don’t owe anything, but the property is still “encumbered.”
- You’ll continue paying a small admin fee (usually R50–R80 per month).
- Benefit: If you want another loan in future (like a further bond or access facility), it’s faster and easier since the bond is already in place.
Option 2: Cancel the Bond (Recommended for most homeowners)
Here’s how it works:
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Request cancellation from the bank
- Contact your bank and tell them you want to cancel the bond.
- They will issue a “Consent to Cancel” to a conveyancing attorney.
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Attorney appointment
- Only a conveyancer can lodge the cancellation at the Deeds Office.
- You can choose your own attorney or let the bank appoint one.
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Documents required
- Paid-up letter from the bank.
- Bond account number.
- Your ID and property details.
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Deeds Office process
- The attorney lodges the cancellation documents at the Deeds Office.
- The Deeds Office updates the records, removing the bank’s name.
- Your property becomes “unencumbered” (100% yours).
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Costs involved
- Attorney fee: usually around R3,000 – R5,000 (depends on attorney scale).
- Deeds Office fee: a few hundred rand.
- These costs are for your account, not the bank’s.
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After cancellation
- The bond account is closed permanently.
- No more monthly admin fees.
- You can request an e-title deed copy for your records.
⚖️ Which Should You Choose?
- If you want your property to be free and clear → Cancel the bond.
- If you want to keep the option of borrowing quickly against it → Leave it open (but you’ll pay small ongoing fees).
๐ A good rule of thumb: If you’re not planning to borrow again within the next year or two, it’s better to cancel and save money long-term.
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