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Law which allows for sale of property without reserve challenged

10 October 2017

Lawyers for Human Rights (LHR) has asked the high court in Pretoria to declare as unconstitutional a rule of the court which requires the sale of a person’s home to be conducted without a reserve price.

LHR is representing Given Nkwane‚ whose house was sold in execution for R40 000 without reserve‚ where the market value of the property was at R380 000.
With his house sold for such an extremely low amount‚ Nkwane is left without a home and paralysed by a considerable outstanding debt to the bank‚ which he considers unlikely to resolve within his lifetime.
Lawyers for Human Right asked the court to declare unconstitutional Rule 46(12) of the Uniform Rules of Court‚ where it requires the sale of a person’s home to be conducted without a reserve price.
The organisation said the fact that a reserve price was not mandatory for sales in execution as well as the lack of judicial oversight over these processes had led to substantial consequences for the judgment debtor.
LHR welcomed amendments by the Rules Board which were in line with the relief sought by Nkwane. However‚ the current provisions of Rule 46(12) unfortunately did not assist Nkwane and many others who had their homes sold in execution prior to the proposed amendments of the Rule.
“Therefore Mr Nkwane’s case remains relevant and a just and equitable determination by the court imperative‚” said LHR.
The South African Human Rights Commission appeared as friend of the court and presented argument in favour of Nkwane. The commission also asked the court to consider foreign jurisprudence in deciding whether a minimum reserve price in relation to sales in execution should be mandatory.

The court will judge later.

Source: Sowetan Live

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