BANK ASSISTED PROPERTY
WHAT ARE BANK ASSISTED SALE PROPERTY PROGRAMMES?
Bank assisted sale properties are those where an Owner or Seller requests that the Bank assists them with the sale of their property. There are 3 stages at which property buyers have an opportunity to purchase these properties.
ASSISTED SALES
PROGRAMME
The Seller can approach the bank to go onto the “Bank Assisted Sale programme”. The Seller gives the Bank a mandate to sell the Property. This mandate is then allocated to Chas Everitt to assist with the sale of the Property. Any sale is subject to the discretionary approval of the Seller's mortgage. Chas Everitt also assists owners who are in arrears on their mortgage payments in getting their properties onto the banks assisted sale program via our LifeSaver programme
INSOLVENT
ESTATES
Properties of Bank Clients who have been declared insolvent are often allocated to Chas Everitt to market. These sales are subject to the approval of both the Trustee of the insolvent Estate & the Master of the High Court.
PROPERTY IN POSSESSION
(REPO BANK PROPERTY)
In the event of the repossessed Bank Property not achieving the minimum reserve price at the Sale in Execution Auction, the Bank will buy the Property back. This Property now becomes a "Property in Possession".
The best way to be aware of the differences between the 3 types of Property Purchases is to understand the process.
Prior to the introduction of these Bank Assisted Property Sale programs, many South African properties were sold at a Sheriff’s auction. Often the results were disappointing. Poor prices were achieved & the repossessed Property Seller was left with a large shortfall on their outstanding bond.
Now, when a borrower defaults on the home loan, to the extent that the only alternative for recovering the debt is via sale of the bank repo property, the banks, (and Chas Everitt through its own property “LifeSaver” programme) offer the property seller the opportunity to elect to enter the Bank Assisted or Distressed Sale programme, where in many cases superior results are achieved.
WHY ARE THESE PROPERTIES POPULAR WITH PURCHASERS?
- They can often be excellent investment properties.
- Purchasers of distressed or Bank Repo Properties can receive a discount of up to 50% on Transfer Duty & Bond costs with certain Banks. This applies if Bank nominated Attorneys are used.
- There is no transfer duty on PIP’s (bank repossessed houses or property).
- These Bank properties, due to the urgency of the situation, are often well priced to encourage a quick sale in the current market.
- These properties may present a good opportunity for a “fixer-upper” home or investment property.
- Chas Everitt, through its Property LifeSaver Programme together with the Banks, in most cases, can offer the Property Seller a better solution.
- The Property Seller is given the opportunity to enter the Bank Assisted or Distressed Sale Programme where, in our experience, far superior results are achieved via our local specialist estate agents.