The current economic climate offers substantial scope for value-for-money property acquisitions, especially for those prepared to consider all options, including bank sale properties on auction, says MC du Toit, chief executive of BidX1 South Africa, which is holding its next online auction on September 11.
Du Toit says bank sales are forced sales following legal proceedings that have compelled the owner to sell, by way of liquidation, insolvency, court order or sale in execution. Forced sales also include deceased estates and divorce settlements, which are handled differently from liquidations.
“Auctions also offer ‘bank instructed sales’ that occur when a bank has acquired property at a sale in execution and then instructs auctioneers to dispose of the property.
“In addition, there are bank-assisted sales when the property owner has defaulted on bond repayments and he or she and the bank then agree to sell the property to avoid legal action.”
Du Toit says while these terms can be confusing, the selling process remains similar, with some exceptions. “For example, in the case of a deceased estate, the sale will require the consent of the executor, and in some cases the Master of the Court, and this then becomes a sale condition.
“Furthermore, in most legal instructions, the sale will need certain procedures to be confirmed by a specific party, such as the trustee of an insolvent estate or the bank,” he explains.
* KwaZulu-Natal properties will be among the lots for BidX1 South Africa’s online auction on September 11. The lots include residential and commercial properties all over South Africa and range from modest to luxury houses and apartments, with upmarket homes in secure lifestyle estates, as well as vacant stands, also on offer.
For more details, see https://bidx1.com/en/news/buying-property-south-africa-bidx1s-digital-platform or email [email protected].