We broke up: How do I transfer a joint bond into my name?
Hello, I bought a sectional title unit with my ex-fiancée through a joint bond. She moved out two years ago and we separated.
I have been paying the bond alone. I approached the bank to do a refinancing in my name alone, though I had a lot of financial commitments. Now I have raised enough funds to pay it up.
My question is do I pay it up, then wait for the bank to issue a title deed and only then I can transfer it to my name OR can I pay it up and request the bank to transfer it to me alone? My ex-fiancée has no problem with signing it out to me as she made no contribution to the unit. I really need to establish what the best solution is to go about transferring this unit. – William
Hi William, joint owners of a property who want to go their separate ways need to do the following:
The owner who “wants out” (hereinafter referred to as the exiting owner) must sell his/her half share to the remaining owner. A formal deed of sale needs to be drafted and signed. A formal transfer will be done by a conveyancer in the deeds office.
Transfer duty will be payable by the remaining owner on the half share transfer. This will be calculated on the full value of the property (for this purpose 2 valuations are to be supplied to SARS). The amount of transfer duty payable is derived by calculating the transfer duty on the full value, divided by two.
The bond can be dealt with in one of two ways:
- The remaining owner applies to the bank to be substituted in the place of the exiting owner as sole debtor and the sole debtor then continues to repay the loan; or
- The bond is cancelled together with the half share transfer.
The cancellation is facilitated either by the remaining owner paying the amount due into the loan account in cash or the remaining owner can apply to register a new bond over the property simultaneously with the half share transfer and the cancellation. The funds from this new loan are then firstly applied to repay the joint outstanding loan.
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Who is Sonja du Toit?
Sonja du Toit is a director at MC van der Berg Incorporated