Here is a step-by-step guide on how to register and bid at a sheriff auction.
Identify your target property and auction date
Sheriff auctions are typically advertised in local newspapers and in the government gazette, however by far the easiest option is to sign up to SheriffHQ.co.za where you can browse comprehensive listings and get email alerts once a week for properties that match your criteria.
Read the gazette notice carefully. If the property is the owner's home, the court will often have set a reserve price, and the notice will say what it is. A bid below the reserve may not be accepted.
Complete a registration form
You can obtain a registration form from the sheriff's office or at the auction. Some Sheriffs require registration to be completed the day before the auction - others process registration forms directly before the auction. Usually, full FICA documentation is required such as an Identity Document and Proof of Address, along with a refundable registration deposit, often between R10,000 and R50,000.
Know the costs involved
The successful bidder will need to pay the following:
- 10% of the purchase price as a deposit on the day of the auction. This is usually paid by EFT, and some sheriffs also accept cash
- Outstanding rates & taxes - these will be announced by the Sheriff before the auction
- Transferring attorney fees - which are usually in the region of R20,000
- Transfer duty as calculated by SARS tax tables
- Sheriff Commission up to a maximum of R40,000
- A guarantee for the balance, usually within 21 days of the auction (check the conditions of sale). The transferring attorney may, at their discretion, allow some leniency if a bond is being applied for and it takes a bit longer
Attend the auction
Collect your bidding card - you can then bid on the property by raising your bidder number. This is by far the most exciting part of the process! Stick to your predetermined maximum price so you don't get carried away. After winning the auction you sign a contract of sale with the Sheriff and the transfer process begins.
Disclaimer: Please note the above information is for general guidance only and is not to be relied upon without conducting your own due diligence.