In the current economic climate, opportunities abound for value-for-money property acquisitions, especially for those prepared to do their homework and consider all options – including bank sale properties on auction, says MC du Toit, CEO of BidX1 South Africa.
So what are “bank sales” and does this mean there are bargains to be had?
Says Du Toit: “More accurately, one would refer to these as forced sales, which means that legal proceedings have compelled the owner to sell, and this can be by way of liquidation, insolvency, court order or sale in execution. Then there are also deceased estates and divorce settlements, which are handled a bit differently from liquidations.
“You also get a bank instruction, which is when a bank has ‘bought in’ a property at a sale in execution and is now the owner of the property and which then instructs an auctioneer to proceed to sell the property by way of auction.
“In addition, there are bank assisted sales, which is when the property owner has defaulted on his or her bond repayments a few times and the bank and the debtor come to an agreement in terms of selling the property before legal action is implemented.”
Du Toit says while all these terms can be confusing, essentially, the selling process remains very similar across all these instructions, with a few small exceptions in certain instances.
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 condition of the sale.
BidX1 SA’s next online auction takes place on September 11.
For further information visit https://bidx1.com/en/news/ buying-property-south-africa-bidx1s-digital-platform or email firstname.lastname@example.org.