Regardless of the fact that the legal requirements in terms of buying a repossessed property are more or less the same as when buying any other property, there are certain issues that come into play when one takes into consideration that the financial institution (lender) has no real knowledge of the property and that the repossessed property will be transferred under a ‘power of sale’.
You may very well get a bargain. However, be prepared to find the answers to some of your own questions. Remember there is legal work involved and the related costs will become your sole responsibility and you will most definitely be caught between a few tight deadlines.
It is a given fact that the bank has not taken up residence in the properties they have up for auction so it’s only natural that they may not be able to answer all of the related queries. Often it falls to you to become dependant on your own investigation.
There will be factors such as building certificates and other legal documentation you may require however, it will be something the bank may not have. You may ask the banks’ legal representative to acquire these documents and certificates but as they are required to alleviate costs they usually advise one to obtain these documents at your own personal expense.
Transfers Involved With Repossessed Property:
No transfer duties need to be paid when buying a repossessed property. The bank will also pay the rates & taxes up until the date of registration.
Buying a repossessed property remains a time saving way of getting the house of your dreams at a fairy tale price.