We understand this is a challenging time. This guide explains your options and how you can achieve a better financial outcome for your property.
The court has issued an order declaring your property executable. In accordance with this order, the Bank has requested MyRoof to market your property in an attempt to sell it at a higher price compared to Sheriff Auction. This action is fully compliant with the court order and legal processes.
Without this option, your property will be sold at a sheriff's auction. These auctions typically achieve only 50% of market value leaving you with a substantial shortfall debt. By selling through the Pre-Hammer programme, you gain access to significant benefits as explained further in this guide.
Pre-Hammer is a program designed to help homeowners whose properties have been declared executable by the court. It creates an opportunity to sell your property for a market-related price before the Sheriff's Auction (Sale in Execution) takes place.
Think of Pre-Hammer as a window of opportunity. During this time, your property is marketed to genuine buyers through registered estate agents. If a suitable offer comes in and you choose to accept it, you can sell your property voluntarily and potentially achieve a much better financial outcome.
Sheriff's Auctions (Sales in Execution) typically achieve only 40–50% of a property's market value. This happens because of limited marketing, bargain-seeking buyers, and a forced legal auction process which generally achieves lower offers.
When a property sells for less than the outstanding debt, the difference becomes a shortfall — and that shortfall remains your responsibility.
| Pre-Hammer Sale | Sheriff's Auction | |
|---|---|---|
| Typical Sale Price | 70–100% of value | 40–50% of value |
| Your Control | Full control | None |
| Remaining Debt | Reduced or eliminated | Larger shortfall |
| Dignity | Private voluntary sale | Public forced sale |
| Discount of up to 10% on shortfall* | Yes | No |
| Sale through an estate agent at a higher price | Yes | No (auctioned) |
| Shortfall repayable over 10 years, interest free | Yes | No |
| Clearance of your name with the credit bureau** | Yes | No |
The table below illustrates the real financial difference between a Pre-Hammer sale and a Sheriff's Auction, based on a property valued at R1,101,000:
| Pre-Hammer vs Sheriff's Auction | Pre-Hammer | Sheriff's Auction | |
|---|---|---|---|
| A | Market Value of Property | R 1,101,000.00 | R 1,101,000.00 |
| B | Outstanding Balance on Bond | R 1,266,150.00 | R 1,266,150.00 |
| C | Estimated Selling Price | R 1,018,425.00 | R 627,570.00 |
| D | Less Costs/Fees | R 132,395.25 | R 81,584.10 |
| E | Estimated Shortfall (B–C+D) | R 380,120.25 | R 720,164.10 |
| F | Less EasySell Shortfall Discount | R 38,012.03 | R 0.00 |
| G | Estimated Revised Shortfall | R 342,108.22 | R 720,164.10 |
| H | Effective Selling Price (C+F) | R 1,056,437.02 | R 627,570.00 |
| Effective Sales Value (A/H) | 96% | 57% | |
| Monthly Repayment | R 2,850.90 | R 8,833.00 | |
| Total Repayment over 10 years | R 342,108.23 | R 1,059,960.21 | |
| Voluntary Sale | Yes | No | |
| Discount of up to 10% on shortfall* | Yes | No | |
| Sell via estate agent at higher price | Yes | No (auctioned) | |
| Shortfall repayable over 10 years, interest free | Yes | No | |
| Your name gets cleared on the Credit Bureau** | Yes | No | |
Your property is listed with registered estate agents who market it to genuine buyers. This happens automatically once executability is granted.
Estate agents may reach out to arrange viewings or gather information.
If buyers are interested, their offers will be presented to you. You'll receive full details to make an informed decision.
You have complete control over whether to accept, reject, or negotiate any offer. There is no pressure to sell.
The sale proceeds like a normal property transaction. The Sheriff's Auction is cancelled.
The Sheriff's Auction proceeds as scheduled. Pre-Hammer was simply an opportunity, not an obligation.
Pre-Hammer is designed to give you options, not to take them away. Throughout this process, you maintain important rights:
No Forced Sale: No sale can happen without your voluntary signature on an Offer to Purchase.
Full Information: All offers must be presented to you with complete details.
Right to Reject: You can reject any offer, no matter how high or low.
Right to Negotiate: You can request different terms if an offer doesn't suit you.
Fallback Option: The Sheriff's Auction remains available if you prefer that route.
Important: Marketing your property is a lawful step the bank can take after executability is granted. However, the bank cannot sell your property without your consent — only the Sheriff's Auction can do that. Pre-Hammer creates an opportunity; it doesn't create an obligation.
This page is for informational purposes only and does not constitute legal advice.
