Let's talk about how to untangle yourself if you're no longer keen on sharing that financial burden of a mortgage bond with someone.
When Can You Cancel a Joint Mortgage?
In a nutshell, you can cancel it in two ways: have one person take over as the sole debtor, or pay off the whole outstanding amount if both parties want out. Just a heads up, you'll be paying attorney fees for cancelling the bond or switching debtors.
Sole Debtor
If one party wants to take full responsibility, they can apply for a "substitution of debtor" from the bank. The bank gets the final say on whether the solo act can afford the property, and if so, they'll appoint attorneys to handle the paperwork at the Deeds Office.
You'll also need to transfer your property share to the sole debtor. If they're buying it from you, whip up an Offer to Purchase. If not, work out a different deal based on what's going on.
When Both Want Out
If you and the other party are on the same page about cancelling the mortgage, tell your bank about your plan to cancel the bond. Be sure to do this at least 90 days before you actually want to cancel to avoid any extra charges.
The bank will bring in an attorney to cancel the bond at the Deeds Office. The bank will inform the lawyer as to how much is left on the mortgage, plus interest and fees. You'll need to pay this amount with a bank guarantee to make the mortgage disappear.
If you're not selling the property, you'll need to pay the owed amount into the attorneys' trust account. If you're selling, the buyer will have to provide a guarantee based on the purchase price to cover the existing mortgage.
Property Transfer
You can't escape the mortgage bond without getting off the Title Deed. So, for this, you'll need Transferring Attorneys. Brace yourself for attorney costs, Rates Clearance Certificates, and maybe some Home Owners Association Consent fees. And, depending on your property's value, you might owe some transfer duty to the tax folks at SARS.
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