All Your Nedbank Bank Property Questions Answered
What is a Nedbank Owned Property (NOP)?
- A Nedbank Owned Property is a property that was bought at a public auction by Nedbank as a repossessed property.
- No transfer duties are payable when one purchases a Nedbank Owned Property which means the purchaser will enjoy this added savings benefit.
- Nedbank will also settle outstanding rates and taxes payable on the property.
I'm interested in a Nedbank Owned Property - Does one bid at a sheriff auction to secure a NOP?
- No, you do not bid at a sheriff auction.
- All that is required is for you to submit an Offer To Purchase directly to Nedbank.
I'm ready to purchase my Nedbank Owned Property. What documents does one need to purchase a Nedbank Owned Property?
The required documents are:
- Signed Abridged Offer to Purchase
- Signed Addendum to the Offer to Purchase
- Signed Important Notes to the Offer to Purchase
- Identity document
- A valid estate agent / agency fidelity fund certificate with every Nedbank Offer to Purchase
- These documents are loaded on Nedbank's website
- Click on Repossessed properties under the Tools & Calculators
What are the costs involved in buying a Nedbank Owned Property?
- One is only liable for the attorney registration and transfer fees.
- These costs relate to the attorney charges for attending to the transfer of the property.
- As VAT is included in the purchase price no Transfer Duty is payable.
Is there transfer duties payable on the purchase of a Nedbank Owned Property?
- There are no transfer duties to be paid which means further savings when buying a Nedbank Owned Property
Who settles any outstanding rates and taxes on a Nedbank Owned Property?
- Rates and taxes including all arrear amounts will be paid by Nedbank up to date of registration or the date of occupation which ever occurs sooner.
- So, if there are any rates or taxes outstanding when you purchase your Nedbank Owned Property, we'll take care of them for you.
How does one check out the availability of a Nedbank Owned Property?
- To check availability of a Nedbank Owned Property contact the expert team at the Nedbank Contact Centre 0860 911 007.
- In the unlikely case that the property of your dreams has been snapped up, we'll help you find another one.
What about occupation of the property?
- Nedbank does not guarantee vacant and immediate occupation of a NOP, as the property could be occupied by the owner or an authorised/unauthorised third party.
- Should the property be occupied, the purchaser will have to obtain vacant occupation at their own cost once the property has been registered in the purchaser's name.
- Please refer clause 10 of the Agreement of Sale which can be accessed & viewed here.
What offer will the bank accept?
- A reasonable offer based on the "Offering Price" reflecting on the Nedbank's website
If there are occupants in the property refusing to vacate and Nedbank has approved the OTP and accepted the deposit, can one withdraw and be refunded the deposit?
- Yes, one can withdraw the offer, however will forfeit the deposit.
Nedbank Owned Properties are sold ‘as is’. What does that mean?
- A Nedbank Owned Property is sold in its current condition, without warranty or any further representation as to its condition, nature or extent and subject to such conditions and servitudes as are mentioned or referred to in the current title deeds or that have been imposed by law.
I'm concerned about the transfer. Who will take care of it?
- As the seller of the property Nedbank will appoint the transferring attorney who will be responsible for facilitating the transfer of the property.
I'd love to view a Nedbank Owned Property. Can you assist?
- In the event that the property is secured by a Guard, Alarm or Housesitter viewing access can be arranged with the Property Management Company, whose contact details will be displayed on a board at the property.
- Should the property be occupied & the occupant is not a bona fide tenant of Nedbank we will not be in a position to provide you with contact details or viewing access.
If a homeowner falls behind on his/her contractual repayments, we make every effort to contact him/her (by telephone, SMS, post and/or email) to understand his/her situation.
This is important as we need to find the best possible solution either to rehabilitate the loan or to minimise the losses that the client will experience.
An SIE is our last resort, as the financial losses to both our clients and us are significant
- We have a number of options available to clients that we convey over the phone, by SMS/MMS, by post and through our attorneys. We have also developed a website at nedbank.co.za/HomeLoansHelp that provides clear advice on the choices available and enables clients to estimate the financial impact and applicability of each option.
In essence, there are five major scenarios when a client faces financial difficulty:
- Clients who have missed payments but are now able to bring their payments up to date can make an arrangement with us to meet their current monthly obligations.
- Clients who can't bring their payments up to date but who are able to pay regular monthly instalments are assessed to see if their account can be restructured over a longer period. This option is available to clients who can afford the new instalment.
- We formally advise clients of their rights under the National Credit Act, 34 of 2005 (NCA), to approach a debt counsellor within a set period. We actively participate and support debt counselling arrangements that meet the requirements of the NCA.
- For clients who can't afford repayment in terms of any of the repayment plans, we provide Nedbank's Assisted-Sales programme. This programme entails the marketing and selling of clients' houses through some of the country's leading estate agents in normal, non-distressed circumstances. The prices clients get for their asset from this process are usually far better than those from an SIE.
- Finally, if the client is unable or unwilling to sell through the assisted-sales programme, we have no choice but to limit our losses as far as possible by realising our security (ie selling the property) through the legal process.
The legal recovery process can be summarised as follows:
- We contact clients by telephone and mail.
- We have detailed conversations to understand our clients' financial situation and try to reach a solution (options 1 to 4 above).
- Once we have established that our clients do not have the ability to rehabilitate their loan and that they are unable or unwilling to sell their property to reduce their obligations, we initiate the legal process and issue a letter of demand.
- At a suitable time we instruct our attorneys to issue a summons. This is delivered by a sheriff to the client's chosen address.
- This is followed by an application to court to allow the property to be sold by a sheriff of the court. A judge assesses the application and ensures that a fair process has been followed.
- The next step is for the sheriff to set a date for the property to be sold by way of an SIE and to advertise the SIE in the Government Gazette and in a local newspaper.
- We calculate a market-related reserve price aimed at measuring the price the client would receive for the asset to offset his/her loan.
- The SIE takes place on the scheduled day
- Our key message to clients in distress is to contact us so that we can work out the best solution together, rather than following the legal recovery process. 'Talk to your bank – it is NEVER too late.'
What is expected of a purchaser at an SIE?
- The potential purchaser should register as a bidder on arrival at the SIE. The registration process requires the submission of personal identification documents as well as payment of a deposit, determined by the sheriff. Note: The Conditions of Sale document must be studied carefully.
What costs will a purchaser be liable for?
- The purchaser is required to pay the sheriff's commission and a 10% deposit of the purchase price at the fall of the hammer. Thereafter, the purchaser remains liable for all outstanding rates and taxes, levies or homeowner association costs as well as the remainder of the purchase price and interest.
Is there an opportunity for a purchaser to view/inspect the property before the SIE?
- It is not always possible to inspect the property, unless the existing property owner has vacated the property. It is, however, recommended that the potential purchaser drives past the property to gauge the condition from the outside of the property and that research is conducted to determine the market value, suburb specifics, comparable sales as well as any costs associated with the property.
Is the property scheduled for SIE owned by the execution creditor/bank?
- No. Properties sold at an SIE belong to the title deed holder/owner and not the execution creditor/bank.
- To protect our client (the execution debtor) the execution creditor/bank will ensure that it receives a minimum price at the SIE (reserve price). To do this the bank's attorney bids on the bank's behalf. If no one else bids above the reserve price, the bank is then obliged to buy the property. This is called a property in possession (PIP). At Nedbank, we refer to such properties as Nedbank-O-wned P-roperties.
Does the purchaser/highest bidder take immediate occupation of the property once the hammer falls?
- The conditions-of-sale requirements would first have to be met and in many instances the property might still be occupied. The occupant may be approached and arrangements can be made for the occupant to vacate the property or to pay occupational rent for a period agreed on between the occupant and the purchaser. If the occupant does not want to vacate the property, the purchaser may proceed with a formal eviction process once the property has been transferred into his/her name
What is the process if there is a valid lease agreement in place at the time of an SIE?
- Where a valid lease agreement has been disclosed to the sheriff, he/she is obliged to offer/sell the property with the existing lease agreement in place, which effectively means that the purchaser will become the new landlord. If no one in the audience is interested in purchasing the property with an existing lease agreement, the sheriff is entitled to offer/sell the property without the lease agreement, which effectively means that the lease agreement ceases to exist immediately on the fall of the hammer.