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I am a qualified Attorney. I specialise in Property Law, Commercial Law, Corporate Law and Trusts.
 
Please visit our website at www.prop-law.co.za for more details.
 
I am an elected Committee Member of the Property Committee of the Association of Pretoria Attorneys and through my involvement, I like to ensure that I am constantly at the "sharp-end" of Conveyancing Practice.

I am the elected Chairman on the Gauteng Council of SAPOA. The South African Property Owners Association (SAPOA) is the biggest and most influential institution in the property industry. SAPOA members control about 90% of commercial property in SA, with a combined portfolio in excess of R150 Billion (about $22 Billion). I am also on the National Council and the National Legal Committee of SAPOA.
 
Member of the Institute of Directors South Africa and Member of the Sirdar Governance Panel.

15 February 2012

'Banks not hard on bond defaulters'

'Banks not hard on bond defaulters'

Banks were not quick to foreclose on bond defaulters because they only recovered about 55 percent of the outstanding debt when properties were sold at auction.

"There is a misconception that banks adopt a hard-line approach in these matters," advocate Dees Ramdhani, acting for SA Home Loans, submitted in the Durban High Court last week.

His comments were in the wake of recent criticism levelled against financial institutions by Judge Rashid Vahed for adding legal costs to defaulter's bills without court sanction.

Before him was an application by Changing Tides 17, Pty Ltd - the trustee of SA Home Loans Guarantee Trust - which was suing Newlands West home owner S'thembiso Mbazana, asking for judgment and an order declaring his home specially executable.

Judge Vahed noted that Mbazana had been charged legal fees, before any court had made any costs order.

He said it was also evident that Mbazana had made some monthly payments "and if you take off the legal fees, there is very little left in arrears".

He suggested that SA Home Loans settle the matter.

When the same application came before Judge Kevin Swain last week, Ramdhani said the matter had been settled. He said he had been instructed to tell that the court that the banks always made a concerted effort to resolve the matter before heading to court, because they recovered very little at auction.

"There are various internal departments at SA Home Loans which make contact with the bond holder at various stages in an attempt to rehabilitate the account prior to the matter being handed over to attorneys. The attorneys, in turn, try to settle the matter without having to foreclose on the property."

Judge Swain suggested that in future matters, these endeavours should be set out in the bank's affidavit before the court.

The Mercury

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