Guide to Purchasing a Repossessed Property

A property becomes a Property in Possession (PIP) or Repossessed Property, once the borrower has defaulted and SA Home Loans reserve price was not achieved at the sale in execution.

Benefits of buying a repossessed property

• No transfer duty is payable by the purchaser, if you are a non-VAT vendor.
• Property rates and taxes (including all arrear rates and taxes) will be paid by SA Home Loans until the date of registration.
• The transfer is often much faster.
• In many instances repossessed properties may require repairs; this can create an excellent opportunity for an investor to upgrade the property for a profitable resale.

The steps involved in buying a repossessed property

• Once you have found a repossessed property that you are interested in please contact us to view the property or to make an offer to purchase by completing our sale agreement. The fully signed and initialled SA Home Loans sale agreement can be faxed to 086 678 5054 or e-mailed to pip@sahomeloans.com
• SA Home Loans will confirm whether your offer to purchase is accepted or not. This process can take up to seven (7) working days. Should your offer to purchase be approved, written confirmation will be forwarded to you and a transferring attorney will be nominated by SA Home Loans.
• If the offer to purchase is accepted, you will have to follow the normal procedures of applying for home loan finance.

General information about repossessed properties

• All properties are sold “voetstoots” and SA Home Loans will not undertake any repairs.
• The Electrical Compliance Certificate is to be obtained by the purchaser.
• The Entomologists Certificate is to be obtained by the purchaser.
• Only conveyancers on SA Home Loans panel of conveyancers will be used.
• SA Home Loans does not warrant that the purchaser will be able to obtain vacant occupation of the property.