The ClareMart Auction Group presents the fourth in a series of “How’s, When’s and Why -To’s” for sellers, buyers and those interested in commercial, investment, residential and luxury property as well as movable assets. The directors and managers within the Group will over the next few months be contributing their knowledge and expertise in order to educate the auction market and answer the many frequently asked questions relevant to the industry.
MC Du Toit, Legal Auctions Director, feels that the fourth instalment in the series should be aimed at those property purchasers and investors who are looking to purchase financial and legal instructions via the auction platform. Du Toit has highlighted certain key terms and principles that the feels the first time bidder attending a legal auction may find useful.
What is a legal or financial instruction? A legal instruction regarding property can be defined as a mandate given by an attorney or liquidator to an auction house to auction a property or properties and a financial instruction is when a bank or other financial institution provides the mandate to dispose of property.
What categories of instructions are there? Distressed property falls under legal and financial instruction. An instruction may form part of a deceased or insolvent estate, business or divorce settlement or company liquidation. A bank instruction may be of similar mandate or be due to repossession as a result of debt default.
Is the auction mechanism still the preferred method of disposing of and of acquiring distressed property that forms part of legal and financial instructions? Yes, definitely. Our Group sold approximately R110million worth of property that falls into the legal and financial instruction category. ClareMart auctions of this nature generally experience high volumes of success when assisting banks, attorneys and liquidators in the disposal of these properties and our auctions continue to be extraordinarily well attended, with some auctions recording more than 200 members of the public present. This is indicative of a mechanism that is working and experiencing popularity and is ultimately achieving results.
Why do legal and financial institutions choose ClareMart to assist in these disposals? Auction is still the first choice for properties that fall under the distressed title. It is often an immediate sale and many legal and financial instructions are based on recouping debts or settling estate needs. These criteria make for a sense of urgency in finalising offers and auction is tantamount to an immediate sale in an open, transparent and competitive forum.
Du Toit says that the Group is mandated with property which forms part of legal and financial instructions from as diverse categories as luxury homes, residential investment property, commercial and industrial property as well as homes for the first time buyer. “There is a wide spectrum of property available under instructions and all of these are excellent opportunities for the bidder wishing to purchase property with an instantaneous result” adds Du Toit.
For information regarding upcoming auctions and available property contact 021 425 8822 or visit www.claremart.co.za
This information is published for general information purposes and is not intended to constitute legal advice. Specialist legal advice should always be sought in relation to any particular situation. Property Wheel will accept no responsibility for any actions taken or not taken on the basis of this publication.