All Your ABSA Bank Property Questions Answered

It is a voluntary program designed to assist existing clients who have a mortgage bond with Absa, to sell their property.

The Bank merely acts as a facilitator to oversee the sale process. A panel of property experts are mandated by the Bank to assist with the marketing and sale of the property.

Offers are only accepted once the Seller has accepted and signed an Offer to Purchase. Absa cannot accept or reject offers on behalf of the Seller.

• If you are interested in viewing or purchasing the Absa HelpUSell property, you can contact 0861222272 (option 3).
• You will receive feedback from Absa advising the way forward and confirming the mandated estate agents details where applicable.
• If an offer is successful, a Bank representative or the mandated estate agent will contact you to discuss and finalise the Offer to Purchase.

We will not be able to disclose the Sellers details, as this is client confidential information and protected by Law.

Absa has the discretion to reject any offer taking into consideration various factors such as the loan-to-value, the outstanding balance, suspensive conditions etc. while bearing in mind both the client’s and the Banks best interest.

The existing offer will be the valid offer at hand; should the existing offer fall through, only then, will any subsequent offers be considered.

We will refer the application to our business partners in Home Loans to assist you with your bond approval process. All lending criteria and affordability requirements will need to be met in order for you to qualify for a bond with Absa. The Purchaser will receive feedback in relation to their Application directly from the Home Loan Division.

No, the following persons are not able to purchase Absa HelpUSell properties:

• Any person permanently in the employ of Absa Bank Limited, its associated companies or subsidiaries (the ‘Bank’).
• Agents and/or consultants contracted to supply goods to services to the Bank.
• The spouse, life partner, business partner or an immediate family member of a permanent employee, consultant and/or agent of the Bank.
• Any person with a personal or business interest in any organisation and/or entity having any commercial or contractual interest in or relationship with the Bank.

A PIP is a property that Absa has purchased at a public auction as a repossessed property.

Purchasers have peace of mind that Absa will pay all rates, taxes and related municipal charges owing on the property up to and including date of registration of transfer of the property to its purchaser.

• Attorney fees and charges necessary to effect registration of the transfer and mortgage bond (if mortgage finance is needed).
• The Purchaser does not pay transfer duty, as the purchase price is inclusive of Value Added Tax (VAT). If the Purchaser is a VAT vendor, Absa can provide a VAT invoice on request.
• Eviction costs, if applicable, as Absa does not guarantee vacant occupation of the property.
• Any repairs and/or renovations to the property will be for the Purchaser’s account.

Where possible Absa can arrange for access to and viewing of PIP properties.

Absa call centre on 0861222272 (option 3).

• Copy of Identity document.
• Proof of address not older 3 months.
• Company/Trust documents when purchasing in the name of an entity.
• Proof of available funds for payment of a deposit on the purchase price.

• The Absa PIP Offer to Purchase.
• Attestation confirming that the purchaser is not employed by the Absa Group or any of its subsidiaries (Absa PIP properties may not be purchased by Absa staff).

No, the following persons are not able to purchase Absa PIP properties:

• Any person permanently in the employ of Absa Bank Limited, its associated companies or subsidiaries (the ‘Bank’).
• Agents and/or consultants contracted to supply goods to services to the Bank.
• The spouse, life partner, business partner or an immediate family member of a permanent employee, consultant and/or agent of the Bank.
• Any person with a personal or business interest in any organisation and/or entity having any commercial or contractual interest in or relationship with the Bank.

An SIE is a public auction of a mortgaged property through a legal process instituted by the mortgagee bank, to recover monies due and owing by a customer who has defaulted on their home loan repayments. An SIE may be scheduled once the mortgagee bank has obtained judgment against the non-paying customer and an executability order against the mortgaged property, in a court with the necessary jurisdiction. The executability order granted by the court mandates the sale of the mortgaged property at an SIE. SIEs are regulated by the rules of the court in which the order is granted:

• Rules 46 and 46A of the High Court Uniform Rules of Court; or
• Rules 43 and 43A of the Magistrates Courts Rules.

SIEs are conducted by the sheriff of the relevant court after the mortgaged property has been attached by the sheriff in terms of the executability order. Once the SIE is scheduled, it must be advertised in the Government Gazette and at least one local newspaper.

Legal proceedings may be instituted by a mortgagee bank in instances where a customer has defaulted on and remains in default of their mortgage Loan agreement due to either an inability or unwillingness to remediate the account.

Formal legal proceedings are initiated by delivery of a letter of demand, followed by service of summons and an application for judgment against the non-paying customer and an executability order against the mortgaged property.

The sheriff conducting the SIE will appoint a day and place for the sale to take place. The date, time and place of the sale will be recorded in the Notice of Sale that is advertised in the Government Gazette and at least one local newspaper and is also included in the conditions of sale in execution, which are available for inspection at the office of the sheriff.

In addition to the requirement to publish the notice of sale in the Government Gazette and one local newspaper, the rules of court also require the execution creditor to serve a notice of the intended sale on all preferent creditors, the local authority and the body corporate or homeowner's association, if applicable, requesting the parties to advise of a reasonable reserve price or agree in writing to a sale without reserve.

The notice of sale must also be sent by the sheriff to all execution creditors who had the immovable property attached, to every mortgagee and all other sheriffs in the district.

The sheriff conducting the sale must also serve a copy of the conditions of sale on the judgment debtor not less than 15 days before the date of the sale.

The property attached is sold by the sheriff by public auction and must comply with the provisions of the Consumer Protection Act, 2008 and any other laws relating to auctions.

Where a purchaser fails to meet the obligations set out in the conditions of sale, the sheriff conducting the sale, after providing notice to the purchaser, may submit their report, stating the outcome of the sale and the purchaser’s failure to meet their obligations, to the court to have the sale cancelled. Once the sale has been cancelled, a new sale in execution may be scheduled.

Any losses that the execution creditor may suffer as a result of the purchaser's default and subsequent cancellation of the sale, may be recovered from the purchaser on application to court by the creditor, supported by the sheriff’s report after written notice has been given to the purchaser.

The property is sold to the highest bidder subject to any reserve price, which may be set by the applicable court in terms of Rule 43A or 46A.

All monies in respect of the purchase price of the property sold on auction must be paid to the sheriff, who will retain such monies in their trust account until the property has been transferred to the purchaser.

After registration of the transfer, the sheriff will prepare a plan of distribution of the proceeds of the sale in order of the preference of the claims. The distribution plan will lie for inspection at the office of the sheriff and the registrar or the clerk of the court for 15 days before the sheriff may proceed to pay out in accordance with the plan of distribution.

Commission is payable by the purchaser to the sheriff conducting the SIE , payment of which has to be made on the date of the sale. The sheriff's commission is currently:

• 6% on the first R100 000.00 of the proceeds of the sale;
• 3.5% on R100 001.00 to R400 000.00; and
• 1.5% on the balance of the proceeds of the sale, subject to a maximum commission of R40 000.00 in total plus VAT and a minimum of R3 000.00 plus VAT.

The balance of the purchase price, after payment of the deposit, must either be paid in cash or secured by a guarantee issued by a financial institution approved by the execution creditor or their attorney and such guarantee is required to be furnished to the sheriff within 21 (twenty one) days of the date of the sale or after the date of confirmation of the sale by the court.

The purchaser is liable for and is obliged to pay within 10 (ten) days of being requested to do so by the appointed conveyancer, the following:

• All amounts due to the municipality servicing the property, in terms of the Local Government: Municipal Systems Act, 2000, for municipal services, surcharges on fees, property rates and other municipal taxes, levies and duties that may be due to a municipality; and (where applicable)
• All levies due to a body corporate in terms of the Sectional Titles Act or amounts due to a homeowner's or other association that renders services to the property;
• The costs of transfer, including conveyancer's fees, transfer duty and any other amount necessary for transferring the property to the purchaser.

The purchaser will at their own cost also be obliged to obtain any electrical compliance certificate(s), entomologist’s certificate, gas installation certificate and/or plumbing certificate of compliance in respect of the property if same is required.

No warranty is given that a purchaser will be able to obtain personal and/or vacant occupation of the property or that the property is unoccupied.

Immovable property sold in execution is sold as it stands (voetstoots) and without warranty or representation and also subject to all servitudes and conditions specified in the deed of transfer pertaining to the property.