A property24 asks: My husband and his friend had a joint bond but because of not keeping up with payments they had to sell the property, however they still owe the bank money even after selling it due to outstanding municipal bills. Is there a way in which the bank can divide the outstanding amount among them officially and each pays his part of the owings? The house is under new ownership at the moment.
SA Home Loans replies:
When a property is sold the Municipality has the first right to collect any amounts due to it before the sale can proceed and the property transferred to the new owner.
Unless the current owner of the property is able to pay the outstanding municipal accounts, these amounts are often advanced by the transferring attorney and then recovered from the proceeds of the sale before the proceeds are paid to the bank to settle the loan. Without this the sale and transfer could not proceed.
If the proceeds of the sale are insufficient to cover the outstanding balance of the loan for any reason, including payment of arrears municipal accounts, then the original owners of the property are jointly liable for repayment of the outstanding debt to the bank. In this case both the reader and his/her friend will be jointly liable for the outstanding balance of the loan. They could agree between themselves how they are going to pay this, but until it is paid the bank can and will hold them both liable.
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