Buying a repossessed house

[Moe_G10]

I was wondering if anyone has bought a house through the bank? What are the steps in the process? After registration of deeds through the attorney do you get the keys the same time or do the bank get the documents, take you to the house, handover keys and give you the deeds or are you called up to do this in their offices?

 

[Wide]

Are you purchasing this through the Sheriff or directly through the bank ? Either case, there are a few pitfalls, unless you have done your proper homework and its dirt cheap, stay away.
Check outstanding rates, water and electricity. These can run into thousands at times. There will be some clauses of occupational rent as a percentage of the purchase price, which you have to pay from sale. You will also be responsible for clearance and other certificates before transfer is done. These things can take time to sort out depending on the issues. The conveyances (which you cannot choose), sheriff and banks also generally drag their feet to get the transfer done which is in their interest as they make more money of you through the monthly occupational rent. You generally entitled to live in the home from the date of sale, depending on the contract, but generally cannot make any alterations etc until transfer is gone through. Transfer on normal properties takes a few weeks with the deeds office, but in a case of repossessed property it can take many months.

If they do have the keys (sometimes they don't as the defaulter may have absconded without providing them), get a locksmith and take occupation as you entitled to it

 

[Moe_G10]

Are you purchasing this through the Sheriff or directly through the bank ? Either case, there are a few pitfalls, unless you have done your proper homework and its dirt cheap, stay away.
Check outstanding rates, water and electricity. These can run into thousands at times. There will be some clauses of occupational rent as a percentage of the purchase price, which you have to pay from sale. You will also be responsible for clearance and other certificates before transfer is done. These things can take time to sort out depending on the issues. The conveyances (which you cannot choose), sheriff and banks also generally drag their feet to get the transfer done which is in their interest as they make more money of you through the monthly occupational rent. You generally entitled to live in the home from the date of sale, depending on the contract, but generally cannot make any alterations etc until transfer is gone through. Transfer on normal properties takes a few weeks with the deeds office, but in a case of repossessed property it can take many months.

If they do have the keys (sometimes they don't as the defaulter may have absconded without providing them), get a locksmith and take occupation as you entitled to it

Directly through the bank. The old owners have moved out and the house is empty. I had asked for occupation and was told I will be allowed to but the the property is still not in their name (the bank) and on the old owner so they will disconnect services (I don't know why they want to do this because they're paying the lights and water for the last 6 months I've seen the bill myself). I filled out the forms etc and handed it in already but when they told me about no lights and water I was not keen any longer.

So the security company calls me a few days later and offers me the keys, I obliged and took the keys and began my repairs and work. Lights are still on and no projects. Deeds should be registered by next week and I'm just concerned that the bank won't see this as a violation of whatever clause they may have put in and they null the sale.

Also, after moving in I found signs of termite infestation which could have never been detected by just a look. Had to open a certain cupboard to see the wood eaten away. Think the bank saved themselves as they have inserted a clause in the sale which I went through again. You can pick up bargains but the risks are high. Also, they're taking their own time. Payment was done in August, Attorney lodged incomplete documents middle August, deeds office sent it back, deeds office had a power cut, waited two weeks now its relodged.

I have no clue what I'm entitled to with regards to this purchase but I was renting before this and had already given a notice to the owner as I was assured by the attorney that the end of September I should have the property on my name. Realised it wasn't going to happen so asked for occupation, no lights was their answer then the security company offered the keys and said they'll remove the alarm and I took it. Bank still has another two sets of keys so I'm just worried they don't come here and see what's going on and just turn back on it all, for which I will lose all the money spent on repairs and renovations. Still haven't done anything on the termite problem as they're active only underneath at the moment but was given a quote by rentokil for R6000 with a 5 year guarantee. Seems decent and I guess I'll have to do it soon.

 

[infscrtyrisk]

Seems dodgy, but so are all repos, full of risk. I hope that you get your investment money's worth and that you don't lose it due to the old owners suddenly moving back in.

Personally, apart from changing locks and barricading the entrance, I would not spend a cent until the transfer is through.

 

[Wide]

Directly through the bank. The old owners have moved out and the house is empty. I had asked for occupation and was told I will be allowed to but the the property is still not in their name (the bank) and on the old owner so they will disconnect services (I don't know why they want to do this because they're paying the lights and water for the last 6 months I've seen the bill myself). I filled out the forms etc and handed it in already but when they told me about no lights and water I was not keen any longer.

So the security company calls me a few days later and offers me the keys, I obliged and took the keys and began my repairs and work. Lights are still on and no projects. Deeds should be registered by next week and I'm just concerned that the bank won't see this as a violation of whatever clause they may have put in and they null the sale.

Also, after moving in I found signs of termite infestation which could have never been detected by just a look. Had to open a certain cupboard to see the wood eaten away. Think the bank saved themselves as they have inserted a clause in the sale which I went through again. You can pick up bargains but the risks are high. Also, they're taking their own time. Payment was done in August, Attorney lodged incomplete documents middle August, deeds office sent it back, deeds office had a power cut, waited two weeks now its relodged.

I have no clue what I'm entitled to with regards to this purchase but I was renting before this and had already given a notice to the owner as I was assured by the attorney that the end of September I should have the property on my name. Realised it wasn't going to happen so asked for occupation, no lights was their answer then the security company offered the keys and said they'll remove the alarm and I took it. Bank still has another two sets of keys so I'm just worried they don't come here and see what's going on and just turn back on it all, for which I will lose all the money spent on repairs and renovations. Still haven't done anything on the termite problem as they're active only underneath at the moment but was given a quote by rentokil for R6000 with a 5 year guarantee. Seems decent and I guess I'll have to do it soon.

refer back to your sale agreement. The issue of occupation and occupational rent should be very clear in this document ? If you are paying occupational rent, you should be entitled to stay there (but not do renovations). If you not paying anything, then generally you should not be staying there.