Sale in Execution Conditions

CONDITIONS OF SALE FOR IMMOVABLE PROPERTY


The sale shall be conducted on the following conditions:

 

1.1. The sale shall be conducted in accordance with the provisions of Rule 46 of the Uniform Rules of Court, Rule 43 of the Magistrate's Court rules and all other applicable law. 


1.2. The property shall be sold by the sheriff of HALFWAY HOUSE - ALEXANDRA at 11H00 to the highest bidder without reserve or subject to a reserve price as set by a competent Court. Where the said reserve is not met, the purchase price shall be subject to confirmation by a Judge or Magistrate in chambers on submission by the Sheriff of the relevant information regarding the highest purchase price obtained at the sale. 


1.3. The sale shall be for rands and no bid for less than one thousand rand shall be accepted. 


1.4. If any dispute arises about any bid the property may again be put up for auction. 


1.5. (a) If the Sheriff makes any mistake in selling, such mistake shall not be binding on any of the parties, but may be rectified. 


(b) If the Sheriff suspects that a bidder is unable to pay either the deposit referred to in condition 7 or the balance of the purchase price, the Sheriff may refuse to accept the bid of such bidder, or accept it provisionally until the bidder shall have satisfied the Sheriff that such bidder is able to pay the deposit and the balance of the purchase price.


(c) On the refusal of a bid under the circumstances in condition 5(b), the property may immediately be put up for auction again.


6. (a) The purchaser shall, as soon as possible after the sale, and immediately on being requested by the sheriff, sign these conditions (if he/she has bought qua qualitate, state the name of his/her principal)


(b) If the purchaser purchases in a representative capacity, the purchaser shall disclose the name of the principal or person on whose behalf the property is being purchased.


7. (a) The purchaser shall pay to the sheriff a deposit of ten percent (10%) of the purchase price in cash or by bank guaranteed cheque on the day of the sale. 


(b) The balance shall be paid against transfer and shall be secured by a guarantee issued by a financial institution, approved by the execution creditor or his or her attorney, and shall be furnished to the sheriff within 21 days of the date of sale. 


(c) If transfer of the property is not registered within one month after the sale, the purchaser shall be liable for payment of interest on the purchase price at the rate as contained in the conditions. 


8. (a) If the purchaser fails to carry out any of its obligation(s) due under the conditions of sale, the sale may be cancelled by a judge summarily on the report of the sheriff after due notice to the purchaser, and the property may again be put up for sale; and


(b) In such event the purchaser shall be responsible for any loss sustained by reason of such default, which loss may, on the application of any aggrieved creditor whose name appears on the sheriff’s distribution account, be recovered from him under judgment of a judge pronounced on a written report by the sheriff, after such purchaser has been given notice in writing that such report will be laid before the judge for such purpose; and


(c) If the purchaser is already in possession of the property, the sheriff may, on (seven days) notice to affected parties, apply to a judge for an order evicting the purchaser or any person claiming to occupy the property through the purchaser or otherwise occupying the property.


9. (a) The purchaser shall immediately on demand pay the sheriff's commission calculated as follows: 6% on the first R100,000.00 and then 3.5% R100,001.00 to R400,000.00 and then 1.5% on the balance of the proceeds of the sale subject to maximum commission of R40,000.00 in total and a minimum of R3,000.00 (inclusive in all instances of the Sheriff's bank charges and other expenses incurred in paying the proceeds into his or her trust account, but exclusive of VAT), which commission shall be paid by the purchaser.


(b) The purchaser shall be liable for and pay within ten (10) days of being requested to do so by the appointed conveyancer -
(i) All amounts due to the municipality servicing the property, in terms of the Local Government: Municipal Systems Act, 2000 (Act No. 32 of 2000), for municipal service fees, surcharges on fees, property rates and other municipal taxes, levies and duties due to a municipality; and where applicable. 
(ii) All levies due to a Body Corporate in terms of the Sectional Titles Act No. 95 of 1986, (Act No. 95 of 1986) or amounts due to a Home Owners or other association which renders services to the property.
(iii) The cost of transfer, including conveyance fees, transfer duty and any other amount necessary for the passing of transfer to the purchaser.


10. (a) The property may be taken possession of after signature of the conditions of sale, payment of the deposit and upon the balance of the purchase price being secured in terms of condition 7(b) (and shall after such deposit be at the risk and profit of the purchaser);


(b) Should the purchaser receive possession of the property, the purchaser shall be liable for occupational rental at the rate of 1% (one percent) per month from date of occupation to date of transfer;


(c) Upon the purchaser taking (occupation) possession, the property shall be at the risk and profit of the purchaser;


(d) The execution creditor and the sheriff give no warranty that the purchaser shall be able to obtain personal and/or vacant occupation of the property or that the property is unoccupied.


11. (a) The purchaser shall be entitled to obtain transfer forthwith upon payment of the whole purchase price and compliance with condition 9, alternatively, transfer shall be passed only after the purchaser has complied with the provisions of conditions 7 and 9 hereof;


(b) If the transfer is delayed by the purchaser, the purchaser shall be liable for interest on the purchase price, at the rate contained in the conditions of sale. 


12. (a) The sheriff may demand that any improvements to the property sold shall be immediately insured by the purchaser for their full value, proof of insurance given to the sheriff and such insurance policy kept in force (as long as the whole price has not been paid) until transfer is registered (if he does not do so, the sheriff may effect the insurance at the purchaser’s expense); and 


(b) Should the purchaser fail to comply with the obligations in 12(a) the sheriff may effect the necessary insurance, the cost of which insurance shall be for the purchaser’s account. 


13. (a) The property is sold as represented by the title deeds and diagrams, (and) or sectional plan, subject to all servitudes and conditions of establishment, whichever applies to the property;

 

(b) The sheriff shall not be liable for any deficiency that may be found to exist in the property. (and renouncing all excess). (The property is also sold subject to all servitudes and conditions specified in the deed of transfer). 


14. The execution creditor shall appoint the conveyancer to effect transfer of the property to the purchaser. Provided that the sheriff shall be entitled to appoint a new conveyancer should the conveyancer appointed by the execution creditor not proceed timeously or satisfactorily with the transfer.

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