What is a public auction?

Author

MyProperty

A public auction or sales in execution relates to distressed properties that are taking too long to sell traditionally.

If the sale is taking too long, the bank may decide to move things along with a public auction. The bank will obtain approval from the High Court to proceed.

Rather than holding out for the best price, these sales aim to recover the outstanding debt owed to the bank and any associated costs in the quickest way possible. For this reason, an addition to Rule 46 by the High Court was made which, in short, makes the process more difficult for banks to go the route of a sale in execution and encourages them rather to place the property on their distressed programmes.

Keep in mind that buyers might be liable for any outstanding rates and taxes on the property. Be sure to read the fine print carefully before signing the purchasing agreement.

Seller Property News

Market & Opinion

What women want in property and why it matters

25 Jul 2024

Discover the growing influence of women in the real estate market as primary decision-makers and investors. Learn how to enhance property appeal by highlighting safety features, community amenities, and functional upgrades. Understand the importance of transparent communication and targeted marketing to resonate with women buyers. By addressing these preferences, sellers can effectively engage with this dynamic and influential group in the housing market.

Legal

Understanding condition reports and the voetstoots clause in property transactions

18 Jul 2024

Understanding the condition report and the voetstoots clause is crucial for both buyers and sellers in the South African property market. This guide explains the legal implications, the types of defects, and essential steps for buyers and sellers to ensure a fair and transparent transaction.

Market & Opinion

Debunking common myths tenants have about buying a home

01 Jul 2024

When it comes to buying a home, misinformation can lead to costly mistakes and unnecessary stress. Let’s debunk some common myths to help you make informed decisions on your home buying journey.

Market & Opinion

Navigating dual occupancy

20 Jun 2024

The rising cost of living and a shortage of affordable housing options have left many South Africans seeking alternative solutions to make homeownership more affordable. One increasingly popular trend is dual occupancy, where homeowners either rent out a portion of their property or co-own a property with a friend or family member.