Written by Jolinde Kruger, Qualified PP Mentor & Head of Private Sales & Developments at Cilliers Auctioneers
DEPOSIT
Deposit of 10% required based on the offer amount.
We are dealing with an insolvent estate and not a private sale. All Trustees require a deposit on any offer submitted in an insolvent estate.
NO Offer will be considered without the deposit.(If not, a guarantee is required where the 10% is held with your attorney which is payable within 24 hours on immediate request from our offices via email.)
Please bear in mind the 10% deposit insures commitment towards obtaining the property. It must be noted that in some cases an attorney guarantee won’t be accepted. It purely depends on the Trustee for specific transaction, but I will advise you on this.
Another reason is that many Purchasers submit bank statements / personal guarantee letters, as guarantee(s) and once accepted they simply waive the deposit with a reason that they spend the So-called deposit on something / do not have it anymore / couldn’t obtain a bond etc.
So, the Trustees made above a condition when submitting an offer. NO offers will be considered without the deposit payment proof / guarantee letter from your own attorney so please be guided accordingly.
Our Principal (Johan Cilliers) is also an attorney at law and handles our Trust account. All our operational licences can be provided to you on request if you wish to validate our details before making a decision / place an offer / paying the deposit.
It must be noted that if you provide an attorney guarantee letter – the said attorney guarantee letter needs to contain certain clauses that I will provide. These attorneys must know that on request they need to transfer the deposit. This instruction will be issued to you via email. The Trustee will NOT release a signed an accepted contract without the deposit in our Trust account. Again, as said, in some cases the Trustee won’t find an attorney guarantee letter in order, then a deposit must be made.
The Offer process is as follows:
You provide us with the offer document, we obtain above deposit/guarantee and then submit it for consideration to the Trustee (whom has been appointed by the High Court to handle the transaction). It is also very important to note that the property belongs to the High Court and the court is selling it to recover debt of the insolvent estate.
On average, it takes about 4 to 12 weeks for feedback. In some instances, we might receive feedback sooner. We do follow up with Trustee weekly to hear what the standing is of an offer.
If there are legal delays in the systems this period for feedback will be longer, but again, we follow up weekly with the Trustee involved.
We will keep you informed, but if we do not contact you via email, it means we still have not received any feedback / updates from them.
It is also very important to note that you cannot withdraw your offer once you place one. The only way an offer will be nullified is if a 3rd party (buyer) makes a higher offer than yours, then we will notify you and ask if you wish to up your offer. If you cannot, then we refund your deposit weekdays between 24 to 48 hours.
If your offer is accepted your deposit will be paid over immediately to the transferring attorney who will transfer the property onto your name. Please note that this said attorney will only be appointed once they accept an offer.
Please also note than when your offer is accepted, the Trustee obtains the final grant document called a 80 Bis from the court and then they will provide the contract to you. Please note on average to obtain this 80 Bis document may takes around 7 to 15 working days.
It must be noted that in some instances we will not receive a one pager offer acceptance letter, but just an email acceptance confirmation from the Trustee.
Once above is received the contract will be send to you and then you will have 30 days’ time to deliver final guarantees. If you buy cash, then you must deliver the funds / remainder purchase price within 7 days.
Extended 80 Bis explanation – extending the powers of the Trustee by the Master to accept an offer. This is done when the Trustee is provisionally appointed and still awaiting final appointment certificate which can take up to 6 months BUT the Trustee can still sell the property.
The matter can sometimes be delayed due to the Trustee having to convene a 1st meeting of Creditors as to decide whether to sell the property through marketing by an auctioneer / agent or go directly to Auction should there be unforeseen circumstances i.e. solvent shareholders from whom the trustee needs full authority to sell, commonly in matters where parties are married out of community, pending civil suits against an insolvent or criminal cases for example SARS. In such cases, we will provide the Purchaser with these details and advise accordingly. Also, should the Trustee have received a final appointment certificate 80 Bis is not relevant and will a 2nd meeting of creditors be convened to accept the resolutions and the offer.
Above in short, is the process and deposit explanation.
If you have any queries/concerns about above, please do let me know.
