When a property is sold it is usually the purchaser who is liable for the cost of transfer. However if the seller has an existing bond over the property that is being sold, the seller is liable for the costs of cancelling such bond. The bond cancellation is a separate transaction but is linked to the property transfer.
The bond cancellation fee is payable to the conveyancing attorney instructed by the seller’s bank to attend to cancellation of the existing bond. It is necessary to register the cancellation of a bond even if the bond has a nil balance.
For more information and professional legal advice, contact Goldberg & de Villiers Inc on 041 501 9800.