Banks have become increasingly sticky in all the processes involved with bonds but now FNB have announced a further requirement, says Lanice Steward, managing director of Knight Frank Residential SA.
They are the first bank that has introduced the requirement that a home loan statement, a copy of the deed of sale and FICA documents must be attached to the cancellation instruction before they will release cancellation instructions on an existing bond.
It is envisaged, said Steward, that the other major banks will follow suit, so sellers should be advised to get all documentation ready, in case their bank calls for them.
This, however, does not negate the requirement to give notice to your bank of your intention to cancel your bond three months before it is due to be done, remembering you will be subject to a bond cancellation fee penalty if you don’t do this, said Steward.
It is important that this is done timeously because there currently are so many delays in the transfer process, including getting rates clearance certificates, and the bond cancellation attorneys will only arrange guarantees once they receive the cancellation figures and backing documents. If this is not done in time it will just add to the frustrating delays already being experienced, said Steward.