Understanding Attorney's Bond Cancellation Fees When Selling a Property
Category Property News
When selling a property with an existing bond, sellers are often aware that they need to provide the bank with a 90-day notice to avoid bond penalties. However, one aspect that sellers may overlook is their liability for attorney's bond cancellation fees. This article aims to shed light on these fees and help sellers understand their financial obligations during the property sale process.
Calculating Attorney's Bond Cancellation Fees:
Attorney's bond cancellation fees are determined based on the number of bond cancellations registered on the property, rather than the bond value or outstanding amount at the financial institution. It's important to note that these fees are separate from any penalties or fees imposed by the bank. Here is a breakdown of the attorney's bond cancellation fees:
- 1 Bond Cancellation: R5,440.00
- 2 Bond Cancellations: R6,752.00
- 3 Bond Cancellations: R6,752.00
- 4 Bond Cancellations: R6,752.00
- 5 or more Bond Cancellations: Custom Quote
For properties with five or more bond cancellations, a custom quote will be provided by the attorney to determine the applicable fees. Sellers should keep these fees in mind and include them in their financial planning when selling a property with multiple registered bonds.
Sellers should be aware of the attorney's bond cancellation fees they may incur when selling a property. These fees are based on the number of bond cancellations registered on the property and are separate from any penalties imposed by the bank. By understanding these fees upfront, sellers can better prepare for the costs associated with selling their bonded property. It is recommended to consult with a qualified attorney or legal professional for precise information regarding bond cancellation fees specific to their situation.
Author: Helen Melon Properties