A Seller's Guide to Bond Cancellation

Are you planning to cancel the bond on your property? Whether you are selling or finalising the sale agreement, bond cancellation involves several legal steps and costs.

This guide will help you understand the bond cancellation process in simple terms, so you know what to expect.

What is bond cancellation?

Bond cancellation is the process of officially ending the mortgage agreement between you and the bank (or financial institution) that provided the loan for your property. The property cannot be transferred to a new owner until the bond is cancelled.

90 days notice: what you need to know

According to Section 125(2) of the National Credit Act 34 of 2005, you need to give your bank at least 90 days notice before cancelling the bond on your property.

If you do not provide this notice in time, you might have to pay a penalty fee. This fee usually amounts to about one month's bond instalment for each month of notice not given.

Exceptions to the 90-day rule

There are some situations where this penalty is usually waived:

• If the property is part of a deceased estate
• If the property has been sequestrated
• If you are registering a new bond with the same bank

How the bank cancels the bond

Once you inform the bank of your intention to cancel the bond, the bank appoints a conveyancer (a lawyer who specialises in property law) to handle the process.

The conveyancer's job is to cancel the mortgage bond so that the property can legally be transferred to the new owner.

What the conveyancer does

The bank gives the conveyancer all the necessary details, including:

• The amount you still owe on the bond
• Any interest due
• Service fees

Coordinating the transfer

If you are selling the property, the bond cancellation conveyancer works closely with the transferring attorney (handling the property transfer) and the bond attorney (handling the new bond if applicable). This ensures a smooth process for everyone involved: the seller, the buyer, and the estate agent.

Paying off the bond

After the conveyancer receives the cancellation figures (the total amount needed to settle the bond), you will need to pay off any remaining balance. This includes:

• The amount still owed on the bond
• Interest due from the date the figures were issued until the registration date

This payment is typically covered by the proceeds from the sale of your property.

Bond cancellation fees

You will also need to pay bond cancellation fees to the conveyancer. These fees usually range between R5,500 and R6,500 depending on the bond size and the conveyancer's tariff.

Final steps: consent to cancellation

Once the outstanding balance and fees are settled, the conveyancer will draft a "Consent to Cancellation of the Mortgage Bond". This document, signed by the bank, confirms that the bond is settled.

Lodging at the Deeds Office

The conveyancer then lodges the consent, along with the original title deed and mortgage bond, at the Deeds Office under the Deeds Registries Act 47 of 1937. Once registered, the title deed and mortgage bond are updated to show that the bond is cancelled.

When will you receive the new title deed?

After the bond cancellation is registered at the Deeds Office, the new homeowner will receive the updated title deed. This can take a few weeks to several months, depending on the Deeds Office processing times.

Related Africa Estate guidance

• How to sell a house in South Africa: the seven-stage seller journey including Step 7 (conveyancing and seller obligations).
• How much money will actually land in my bank account after the sale?: the cancellation cost line shown in context of the full net-proceeds calculation.
• The residential transfer process explained: the three parallel conveyancing workstreams that include bond cancellation.

Need help with bond cancellation or any other part of selling your home? Contact Africa Estate. We coordinate with your existing bond bank and the conveyancer so the 90-day notice and cancellation figures land at the right time.

This article is informational. Section 125(2) of the National Credit Act 34 of 2005 and the Deeds Registries Act 47 of 1937 govern bond cancellation in South Africa. Always consult your bond bank and a qualified attorney for advice on your specific situation.