Buying Property at Auction in South Africa

Buying a house, farm or commercial building at auction can be quicker and cheaper than a private sale, but the rules are stricter. Here is how property auctions work in South Africa and how to prepare.

Where auction properties come from

• Private auction houses sell for owners, deceased estates, liquidators and banks, often with show days and online bidding.
• Sheriff sales (sales in execution) are ordered by a court after a judgment and run by the sheriff, with their own conditions of sale.
• Bank-repossessed properties can come through either route.

Do your homework first

Auction sales are normally voetstoots and not subject to finance, so the checking happens before you bid:

• View the property and, if you can, have someone look at its condition.
• Read the conditions of sale: the deposit, the auctioneer's commission, the guarantee period and who pays arrear rates, levies and transfer costs.
• Check the title deed, zoning and any occupants. An occupied property may need to be vacated, which can take time.
• Arrange your finance. Get bond pre-approval or proof of funds before the auction.

On auction day

Register as a bidder with your ID and proof of address, and bring what the auctioneer asks for to pay the deposit. Set your maximum price beforehand, including commission and transfer costs. Some sales are subject to the seller's confirmation, so the highest bid is not always accepted on the day.

After a successful bid

• You sign the conditions of sale and pay the deposit and commission, usually on the day.
• You provide a bank or cash guarantee for the balance within the period set in the conditions (often around 30 days).
• The seller's conveyancer handles the transfer, and you pay the transfer costs unless the conditions say otherwise.

A winning bid is binding, so read our guide to buying at auction and the fees guide before your first sale.

Find property auctions

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