HOA COLLECTING DEBT: CHOOSE THE METHOD WISELY
Waterkloof Boulevard Homeowners Association (Association Incorporated under Section 21) v Yusuf and Another (028945/2022)  ZAGPPHC 737 (28 August 2023)
A creditor, armed with a judgment debt in its favour, is often still a long way off from having the debt settled. The creditor can in such circumstances apply to court for an order allowing it to sell the debtor’s property in execution, or it can apply for the debtor’s sequestration. The latter requires the creditor to prove that it is to the benefit of creditors – which is detracted from if the costs thereof is more than the costs relating to execution.
The judgment below explains why this is so and highlights considerations that a HOA management should bear in mind.
EXECUTION SALE RESERVE PRICE NOT EASILY SET AT R NIL
Absa Bank Limited v Lekhethoa (33086/2019)  ZAGPJHC 967 (28 August 2023)
Our law has strict rules regulating the sale in execution of a person’s home as this affects a person’s constitutional right to adequate housing. This judgment deals with an application by the judgment creditor for an order that the court determines the reserve price at Rnil, because two previous execution sales failed to meet the reserve prices set by the court. Although reducing the amount of the reserve price, the court indicated why it is loath to make it Rnil, even though there is a strong argument to be made out that the property should be sold sooner rather than later, as the debt and municipal rates just keep piling up.