Most financial institutions require either a 60 or 90 day notice period, otherwise penalty fees will be charged. To avoid these costs, as soon as you put your property on the market, you should send a written letter to your bank to alert them of your intention to sell.

The penalties will then be reduced depending on the period of time taken to register the transfer of the property. If the transfer of the property then occurs after 60 days of the 90 days’ notice then the Seller will only be liable for 30 days of penalty interest and if registered on day 90, the charge will be nil. Once you have given notice and if you have an access bond, you will no longer be able to withdraw money from the bond.

Circumstances where the 90-day notice period may be waived by the bank:
• If the property is sold within a deceased estate.
• If the seller of the property has been sequestrated.
• If the seller is buying a new property and taking out a new home loan with the same bank.

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In South African law, the seller of the property has the prerogative to appoint a specially qualified attorney (a conveyancer) to procure formal registration of the property into the name of the buyer.

The seller authorises the conveyancer to transfer the property to the buyer by way of a power of attorney.

The conveyancer will also collect the purchase price on behalf of the seller.

This position is not cast in stone, and is negotiable between the seller and the purchaser. In some cases, the agent may present the names of conveyancers to the parties, but the final decision still lies with the seller.