Thought of the Week | Seller’s current bond over property

When immovable property is sold, it is in most instances the purchaser that is liable for the costs of the transaction, ie to register transfer of ownership into his name.

However, in the typical transfer transaction where the seller has a bond over the property that was sold, the seller is liable for the costs of the separate, but related, transaction to cancel the current bond over the property.

The bond cancellation fee is a standard fee payable to the conveyancing attorney that was instructed by the seller’s bank to attend to cancellation of the current bond. The formal registration of cancellation is necessary even if the bond has a nil balance.

View here for an explanation of which party is liable for which costs in a transaction or contact us at STBB for more information.

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