Today’s read on #mortgages #adjournment or stoppage of sale #Regulation13 #MortgageRegulations
In the case of Royal Transit Ltd & anor versus ABSA Bank, court exercised its discretion to determine that the Applicant was not obliged to pay the 30% referred to under Regulation 13 of the Mortgage Regulations.
Regulation 13 states that before court can grant an order adjourning a sale by public auction for reasonable cause, a mortgagor, spouse, agent of the mortgagor or any other interested party must pay a security deposit of 30% of the forced sale value of the mortgaged property or outstanding amount on the loan, to the person conducting the sale.
Court, in this case, agreed with the lawyers for the Applicant, M/S Lawgic Advocates, that where the mortgagor disputed the validity of the mortgage, or the outstanding amount to be paid, there was no requirement for payment of the 30%. In addition, where there was no valuation report presented by the Bank, it would be impossible to determine what 30% constituted; whether of the forced sale value of the property or of the outstanding amount, which is in dispute. These were issues to be tried by court. A temporary injunction was then granted staying the sale of the Applicant’s property pending the determination of those questions.
