Homeowners now protected against home repossession

Namibians facing debt will now be better protected against losing their homes, after the Office of the Judiciary announced stricter rules for property sales in execution.

The amendments were published in the Government Gazette on 22 August and took effect immediately.

Judge president Petrus Damaseb said the amendments to the High Court rules are aimed at ensuring fairness in the way debts are recovered.

The new rules means that before a person’s primary home can be sold, judges are required to look at the debtor’s financial situation, payment history, and whether there are other ways to settle the debt.

“The court must hold an inquiry to determine whether the sale of such immovable property is the most appropriate order to satisfy the judgement debt,” Damaseb said.

He said only if the court is satisfied that selling the home is the last resort would the property be declared executable.

The court also introduced more control over auctions to prevent ghost bidders who drive up prices but fail to pay, causing delays and losses.

According to the amendments, deputy sheriffs are now allowed to demand deposits from bidders before auctions begin.

“The deposit at a sale of movable property must not exceed N$2 000, and the deposit at the sale of immovable property must not exceed N$10 000,” Damaseb said.

Additionally, remote or online bidding has been banned.

“A bidder or his or her representative must attend the auction in person and the deputy-sheriff must not allow telephonic bidding, bidding via video conferencing or any other electronic or remote bidding,” Damaseb said.

According to Damaseb, the system becomes fairer both to creditors and debtors by requiring bidders to be physically present and placing limits on deposits.

Another safeguard is that bidders will no longer be allowed to bid on behalf of others unless they provide written proof before the auction.

This move is aimed at closing loopholes that allowed front bidding on behalf of companies or individuals who did not want to appear in person.

Damaseb said the amendments modernise the justice system, protect families from the unfair loss of their homes, and ensure fairness in the enforcement of court judgements.

The amendments also provide clearer rules for garnishee orders, where third parties such as employers or banks are directed to pay money directly to settle a debtor’s obligations.

Courts will now demand stricter documentation before granting such orders.

“The court must inquire into and give due consideration to the personal circumstances and the surrounding facts supporting an alternative order,” said Damaseb.

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