Sheriff auction houses are properties that have been placed on auction because the bond holders were unable to pay their outstanding home loan and as a result the banks has had to repossess the property to settle the outstanding bond.
By placing the property on auction the bank is hoping to sell the property to at least cover the outstanding bond amount.
More about What Are Sheriff Auctions
While you don't need to any experience to bid at sheriff auctions, it is best to attend a few auctions before hand to get an idea of what you can expect.
HOW THE PROCESS WORKS
Buying a property at a sheriff auction is an easy three step process.
First Step: Research and Register
The first step is to do you research on the property that interests you. Get an idea of its market value and the current condition of the property. You should also review the conditions of sale, which will be provided by the sheriff. Next you'll need to register as a bidder before you are allowed to participate in the auction.
Second Step: Bidding
Bid only when you feel comfortable to do so. During the auction you should make eye contact with the auctioneer and lift your hand or wave when you want to bid. When you no longer wish to bid, indicate this clearly to the auctioneer by shaking your head. You should only bid if you have the money available or have made financial arrangements.
Lastly: Finalize The Purchase
Once the auction has been completed, and your bid accepted by the sheriff you will be asked to sign off on the Conditions of Sale, confirming your purchase of the property.
You will also need to pay:
Deposit: 10% of the purchase price in cash or as a Bank guarantee cheque.
Auctioneer's Commission: Max of R9 975
A sheriff auction is a public auction sale of a property. The auction is held by the sheriff, who is qualified representative appointed by the court to run and administer the auction. These auctions are often also referred to as sale in executions.
A property goes to sale in execution if the owner fails to maintain their mortgage commitments. The lender may then apply to the court for a court order to repossess the property and recover some of the money that has not been repaid on the home loan.
Typically properties at sheriff auctions are sold well below their market value, since the banks are primarily interested in covering the outstanding bond amount, and are often not interested in trying to get the very best price.
As you might imagine there are huge bargains to be found that these types of property auctions; but finding the information about which properties are set to be auctioned is not very easy.
After repeated requests from our clients to help them find these sheriff auction lists, we decided to create a single website that they can use to download the list of upcoming repo auctions in their province. And this service is now also available to you!
Sheriff auctions are happening every single day around South Africa, and only a few people - like yourself - know where to get the information about them.
In the meantime you can get a list of upcoming auctions in your province by clicking on the links below.
A list of upcoming sheriff auctions in:
Eastern Cape - coming soon
Free State - coming soon