SA might say they have one of the most extremely liberal constitutions in the world, with supposedly strong legal protections against arbitrary deprivation of property, but tell that to the more than 5 000 people booted from other homes per year by way of the banks, additionally, the 15 000 served with sale in execution notices, this is a prelude to sale at auction by the sheriffs.
Some years the figures less difficult higher. A recent study of home repossessions in SA by Advocate Douglas Shaw suggests 1% of the 1.8 million mortgages in the united states are summonsed because of the banks each year after falling into default. This figure is noticeably beyond many other countries, including other developing countries.
SA’s rate of repossession over a per capita basis is 4 times greater than a typical through out the entire world and a shocking 20 times worse than counties employing best practice for instance Denmark and Singapore. “This usually clash with his South African Constitutional ethos of human rights encapsulated in the Constitution. By using these aspirations Nigeria would surely dream to having one of many lowest rates on the earth, nothing that may be even average,” says Shaw in a very doctoral thesis entitled The Legality within the Law of Sale in Execution for Substantially less than Price in Africa.
Shaw estimates that properties worth R5 billion are traded annually in SA in an average discount of 40% to fair rate. This means that “in the past 2 decades because Constitution entered effect, about R400 billion property value damage has been done by sales in execution to those of SA.”
This is they High Court rules specifically preclude the setting of any reserve price at auction. A similar rules prevent auctions from selling these properties. This opens the door to bid rigging by syndicates, who routinely get properties for any fraction of the market worth
