select
|

Want to hang on to your home? Avoid these hazards

When times are tough and consumer budgets are under pressure we hear a lot about mortgage defaults and home repossessions, but failing to pay your home loan installments is actually only one of several ways you can cause your home to be attached and auctioned off?
 
Berry Everitt, CEO of the Chas Everitt International property group, says homeowners also need to avoid these five hazards: 
 
* Failing to pay your taxes. “Your local authority can go to court and get a debt judgment against you if you don’t pay your property rates, and although it is usually a last resort, SARS can also have your property attached if you don’t pay your income tax,” he notes. “There are also hefty penalties for not paying tax, so even if you can reach an agreement to pay off the debt and prevent your home from being auctioned, it is likely to cost you a lot more than the original tax bill.”

What is more, you can’t escape your tax liabilities by selling your home. The municipality will most likely not issue a clearance certificate to finalise a transfer to a new owner unless all rates and service charges due by you have been paid. And SARS is entitled to take whatever percentage of the sale proceeds is required to pay off any outstanding income tax amounts.
     
* Failing to pay your monthly sectional title levies or home owner’s association dues.

“Legally,” says Everitt, “the body corporate of your sectional title complex or the HOA of your estate can have your unit attached and sold off to settle arrear levies, even if you have a bond on the property and have been paying your home loan instalments.

“The bank will get any proceeds of the sale left after your levy arrears have been paid and you will still be liable to pay any outstanding portion of the home loan.”
 
* Applying for voluntary sequestration, otherwise known as filing for bankruptcy.

If your home is registered in your name, it will be considered as an asset in your insolvent estate, and the trustees appointed by the court will be obliged to sell it to try to realise at least the amount outstanding on your home loan or, if you don’t have a loan, to settle some of your other debts.
       
* Engaging in illegal activities.

Under South African law (Chapter 6 of the Prevention of Organised Crime Act), the National Public Prosecutor can apply for any property used in the commission of a crime, or believed to have been purchased with the proceeds of crime, to be attached and forfeited to the State.
 
* Standing surety for someone else’s debt, or for the debts of a business.

“If the other person or the business defaults in such cases, the creditors will be entitled to come after you personally or attach your private assets to settle the debts, and there is a very real possibility of losing your home,” says Everitt. “You should therefore be very wary of ever acting as surety for anyone else, even your own children or parents.”


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 23 May 2018
      The importance of correctly pricing a property for sale is more imperative than ever. This is according to Debbie Justus-Ferns, divisional manager of Renprop Residential Sales, who says that despite this crucial selling fact being emphasised so often, in the current market, many sellers are still expecting unrealistic prices for their homes which is having a negative impact on the ultimate sale price.
    • 22 May 2018
      Extreme weather appears to be the new normal, evident by the volume of insurance-related disputes reaching the industry watchdog’s desk. To avoid a situation in which your insurer refuses to pay up, you should proactively ensure that your home is well-maintained and ready for whatever winter has in store.
    • 22 May 2018
      As the impact of technology on the real estate industry becomes more significant, it is clear that there is a need for an objective look at not only traditional real estate models but also online and other alternative low-commission real estate agencies, to examine what they offer and what their impact might be.
    • 22 May 2018
      According to Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, dealing with some sort of neighbour dispute is an unavoidable part of life unless, perhaps, you choose to live on a remote small holding for the rest of your life.
    • 22 May 2018
      Buyers feel that they are getting value for money in the Northcliff area without having to compromise on aesthetics and amenities
    • 21 May 2018
      Secure living is one of the growing property trends in South Africa and Nooitgedacht Estate in Stellenbosch certainly ticks the right boxes for buyers who want a secure, exclusive lifestyle in one of the Boland’s most sought-after estates, says Pam Golding Properties.
    • 21 May 2018
      With sectional titles growing in popularity, an increasing amount of homeowners simply do not have the garden space to install a tool shed in their backyard.
    • 18 May 2018
      Home improvements are a great way to add value to your property, but not all of us have bottomless pockets for a full-on renovation. Lucky for us, there are plenty of affordable DIYs that can spruce things up over a free weekend.
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK