Important: Buying an Insolvent Estate Property — What You Need to Know
Insolvent estate sales work differently to a standard property purchase. Please read carefully before submitting an offer:
1. Trustee Approval
A Trustee has been appointed over the estate to conclude the sale of this property. The Trustee has final say, and this can take time. They must ensure any offer covers all costs associated with the property — outstanding rates, taxes, levies, or mortgages — so the buyer receives a clean, unencumbered title. The Trustee also weighs the property's value and condition, including likely repair costs, before considering an offer.
2. Deposit Requirements
A 10% deposit of the purchase price is required within 48 hours of the Trustee approving the offer. This can come from personal funds, or via a short-term bridging loan taken out ahead of your bond application (if you're not paying cash). Once your bond is approved, the bridging loan is settled and you simply continue with your monthly mortgage repayments.
3. Voetstoots Sale — No Warranties
This property is sold voetstoots ("as is"), with no warranties or sureties provided by the seller. A viewing is strongly advised before offering. The buyer is also responsible for arranging an electrician to issue the electrical Certificate of Compliance (COC) later in the sale process.
4. Understanding the Transaction Structure
The parties involved, in order, are: You (the buyer) → the Trustee (seller) → the auctioneers (who facilitate the transaction) → and Unlock Properties, who advertise under the auctioneers' mandate as a fourth party.
5. Rates, Taxes & Levies
As this is an insolvent estate, the seller and their representatives are not obliged to obtain or provide outstanding rates, taxes, or levy figures. Prospective buyers should independently confirm these amounts with the relevant municipality and/or Body Corporate before submitting an offer.
How to Offer
Interested in this property? Get in touch with us and we'll guide you through submitting a compliant Offer to Purchase and explain exactly what the process, timelines, and costs will look like for you.
