Sheriff auction questions, answered

A sheriff auction happens when a court order has been obtained to sell a property to recover money the owner has failed to repay. Usually the money was lent by a bank, but a body corporate that has not been paid, or in fact any other creditor, can obtain such an order.

Sheriff auctions are a last resort because the prices obtained are generally lower than market value.

Read the full guide →

A sheriff is appointed by the government to execute court orders in a specific area. Each major city is divided between 5 and 10 sheriffs, while smaller towns may only have one or two.

Each sheriff runs their own auctions and sets their own registration requirements, so it pays to phone ahead if you have not been to that sheriff’s auctions before.

The most common reason is that the owner has failed to repay their home loan. The bank (the “primary creditor”) obtains a court order to have the property sold by the sheriff to recover the money.

The second most common reason is that a third party obtains the court order: a body corporate, a homeowners’ association or anyone else the owner owes money. If a bank has also lent money against the property, the bank can cancel the sale if the price is not high enough to repay its loan.

For a property to be sold by the sheriff, the plaintiff’s attorneys must publish a notice in the Government Gazette. This entry always contains the basics: the property address, the names of the defendants and the details of the transferring attorneys.

Often it also includes useful extras such as the property’s condition, the number of parking bays, exclusive use areas and other facts the attorneys felt it important to mention. It is always worth reading if you are considering bidding.

Tip: SheriffHQ listings summarise the key facts from the gazette entry, so you can scan dozens of properties in minutes.

Sheriff auctions are the ultimate source of great-value property. This is why:

• Sales are only advertised a few weeks before the auction, in the Government Gazette and one local newspaper, so few buyers hear about them.
• There is no official show day or way to inspect the property.
• When there are very few interested parties the bank often has to buy the property itself, and it becomes a bank repossession. Usually the bank does not bid more than 60–65% of market value, and there are cases where the bank lets a property go for 50% of market value.

How to set your maximum bid →

For a property to become a bank repo, the bank first has to buy it at a sheriff auction. This usually happens when there is little interest in the property at the auction, or when the bank has over-valued it.

Bank repossessions usually do not offer great value because the bank is trying to sell the property for more than anyone was prepared to pay at the sheriff auction. Bank repos are sometimes considered “the leftovers”.

At the sheriff auction the bank does not particularly want to buy the property. It would much rather someone else bought it so it recovers its money sooner. If it has to buy, it incurs holding, marketing and admin costs, and those are reflected in a resale price that is usually close to market value.

Sheriff auctions vs repossessions →

Start from the last sold price and recent sales of comparable properties nearby, then adjust for size, condition and the features you can see from the street or on satellite imagery. Do not anchor on the bond registered against the property: that tells you roughly what the bank lent, not what the property is worth.

Tip: The Insider Report includes the last sold price, recent sales nearby, the municipal valuation where available and the Deeds Office record.

How to conduct a desktop valuation →

Requirements differ from sheriff to sheriff, but this is what they may ask for:

• A refundable registration deposit, often between R10,000 and R50,000 and sometimes more. The amount is usually given in the gazette notice.
• FICA documents: proof of residence and a copy of your ID. Some sheriffs do not require them.

In some cases you cannot register on the day of the auction and need to register a few days before at the sheriff’s office.

Tip: Always phone the sheriff’s office to confirm the registration requirements if you have not been to an auction by that sheriff before.

How to buy at a sheriff auction →

There is no official way to view the inside of the property before the auction. The sheriff does not hold show days or viewing appointments, so each bidder makes their own enquiries by visiting the property and inspecting it from the street.

Experienced buyers also speak to the neighbours, check whether the property is listed with an estate agent (who may be able to show it), and use satellite imagery to spot pools, cottages and extensions.

How to view a property going on auction →

You need a 10% deposit on the day of the auction, usually paid by EFT (some sheriffs also accept cash), and a guarantee for the balance, usually within 21 days of the auction. The conditions of sale give the exact terms.

If you are applying for a bond, the transferring attorney may, at their discretion, allow some leniency if it takes a bit longer, but pre-approval before the auction is strongly advised.

If the property is the owner’s home, the court will often set a reserve price, which is stated in the gazette notice. Otherwise the sale is usually without reserve and the property goes to the highest bidder.

When a third party such as a body corporate obtained the court order and a bank also holds a bond over the property, the bank can cancel the sale if the price does not cover its loan. Always read the gazette entry and the conditions of sale before you bid.

The sheriff requires a 10% deposit when the hammer falls. On top of the purchase price, the buyer pays:

• All outstanding rates and taxes on the property, including water and electricity.
• All outstanding levies or homeowners’ association fees.
• The sheriff’s commission, up to a maximum of R40,000 plus VAT.
• Transfer duty or VAT, as with a normal purchase.
• The transferring attorney’s fees, usually in the region of R20,000.

Tip: Phone the transferring attorneys before the auction for the outstanding rates figure (their details are in the gazette entry), so you can set your maximum bid properly.

See a worked example of the costs →

6% on the first R100,000 of the price, 3.5% on R100,001 to R400,000 and 1.5% on the balance, with a minimum of R3,000 and a maximum of R40,000, excluding VAT. On a R1.2 million purchase that works out to R28,500 plus VAT.

How to set your maximum bid →

After transfer, which usually takes a few months from the auction. The attorneys obtain the rates clearance, you pay the transfer costs, and the Deeds Office registers the property in your name. Interest on the balance usually runs from the auction date, so it pays to move quickly on the guarantee.

Yes. A free account lets you browse the auctions coming up in the next 7 days across South Africa and get weekly email alerts for your areas. Paid members get up to 60 days’ notice of upcoming auctions, full property descriptions and unlimited Insider Reports in their chosen areas.

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From the Government Gazette, sheriff offices and private auctioneers across all nine provinces. Listings are added as soon as a sale is advertised: around 400 new ones every week.

Choose the sheriff offices, cities or suburbs you want to watch, and narrow them down by property type and number of bedrooms. Every Monday we email you the matching properties going on auction. You can add as many alerts as you like and change or stop them at any time.

Setting up email alerts →

The property’s last sold price and transfer date, the municipal valuation where available, recent sales nearby with their size and location, suburb price trends, the Deeds Office record (legal boundaries and registered size), the bonds registered against the property and their amounts, and the gazette entry with the transferring attorney’s contact details. Everything you need to value the property and set your bid.

How to read the Insider Report →