Frequently Asked Auction Questions
1May I make an offer to the sheriff either before or after the auction?
No, the Rules of Court do not permit the sheriff to give legal effect to such offers.
2Must I register as a buyer?
Yes, the Consumer Protection Act 68 of 2008 requires prospective buyers to register.
3Do I have to pay registration fees, and are they refundable?
Yes, the registration fees are payable and refundable when the bid has been unsuccessful. However, the registration fees can also serve as part payment of the commission, of deposits or of the purchase price.
No, when the bid has been knocked down, and the buyer is not able to pay the deposit or the purchase price immediately.
No, when the bid has been knocked down, and the buyer is not able to pay the deposit or the purchase price immediately.
4Do I have to pay any commission?
Yes, commission consists of the following: 6% on the first R30 000.00 of the proceeds of the sale, and 3.5% on the balance, subject to a maximum of R10 777.00, excluding VAT, with a minimum of R542.00
5May I buy on behalf of someone else?
Yes, on condition that you comply with certain formalities. A properly written power of attorney should be submitted. Both the warrantor and the warrantee should satisfy all FICA requirements.
6What is FICA?
This is an acronym of the name of the so-called Financial Intelligence Centre Act 38 of 2001, as amended.
7How much can the transfer fees amount to?
Transfer fees are calculated according to a fixed tariff, calculated according to a sliding scale that is levied by the conveyancers. Refer to the attached table for an estimate. Consult a lawyer for an appropriate quote.
8What happens if I buy something and cannot pay for it?
Specific legal consequences could be applicable, such as responsibility for spilled damages, interest and costs. A buyer who already occupies the property may be evicted.
9Can I obtain immediate ownership and occupation?
Please note that ownership and occupation do not have the same meaning. The conditions of sale usually stipulate that the buyer is entitled to ownership after the bid has been knocked down and when the payment of the required deposit and auctioneer’s commission has been made. Immediate occupation cannot always be guaranteed.
10May I use my own lawyer to draw up the deeds of transfer?
It is customary for the conditions of sale to specify that the claimant’s lawyer be used to effect transfer.
11Are the provisions of the Consumer Protection Act 68 of 2008 applicable?
Yes, apart from instances in which the exclusions specified in Article 5(2) of the Consumer Protection Act 68 of 2008 apply.
12What happens in cases when the current occupier refuses to move?
The buyer will have to obtain an eviction order at his or her own expense.
13What are a tenant’s rights when a property is judicially sold?
If a lessor’s property is mortgaged, certain of the lessor’s rights are limited as a result; and consequently the rights of the tenant are limited too. As a general rule, the tenant will have to move out.
14May I sell the property immediately after purchase?
Yes. However, the property will have to be registered in the successive buyers’ names.
15May I start making improvements to the property immediately?
Yes, but it would be advisable to wait until the property has been registered in the buyer’s name.
16Do I have to pay occupational rent?
No, however, interest would be due on the balance of the purchase price if the full purchase price were not paid immediately.
17Can I be updated with auction information?
Yes.