Here’s a step-by-step guide on how to register and participate in a sheriff auction:
- Identify Your Target Property and Auction Date
- Sheriff auctions are typically advertised in local newspapers and government gazettes. However, the easiest way to stay informed is by signing up on sheriffproperty.co.za, where you can browse weekly nationwide auction listing for properties that meet your criteria.
- Complete a Registration Form
- You can get a registration form from the sheriff’s office or at the auction. Some sheriffs require registration to be completed the day before the auction, while others allow registration directly before the auction. You’ll need to provide full FICA documentation, including an Identity Document and Proof of Address.
- Understand the Costs Involved
- If you are the successful bidder, you will need to pay:
- A 10% deposit of the purchase price to the auctioneer on the day of the auction, usually via bank guaranteed cheque or EFT.
- Outstanding rates and taxes, which the sheriff will announce before the auction.
- Transferring attorney fees, typically around R25,000.
- Transfer duty, as calculated by SARS tax tables.
- Sheriff commission, up to a maximum of R40,000.
- You must provide a guarantee for the remaining balance within 30 days. However, the transferring attorney might allow some flexibility if you’re applying for a bond and need more time.
- Attend the Auction
- Collect your bidding card and bid on the property by raising your bidder number. This is the most exciting part of the process! Stick to your predetermined maximum price to avoid overspending. If you win the auction, you’ll sign a contract of sale with the sheriff, and the transfer process will begin.
Disclaimer: This information is for general guidance only. Conduct your own due diligence before relying on it.