I refer to the article in your newspaper of Tuesday, 4 September 2007, headlined “City of Windhoek Revises Auction Rules”
Allow me this opportunity to point out some of the facts or information which is misleading. It is our opinion that the article did not cover the whole facts as resolved by the City Council of Windhoek.
It is indicated that the City will be holding “mixed auctions”. It should however be made clear that the City cannot hold mixed auctions in terms of mixing residential and commercial auctions.
The City is currently running a registration for two auctions to be held on two separate dates. The first auction will be for “industrial” zoned properties that are situated in Prosperita, Northern Industrial area and Katutura. This registration process will close on Wednesday, 19 September 2007 and the auction will be held on Wednesday 26 September 2007.
The registration process for “residential” erven will close on Friday, 21 September 2007 and the auction will be held on Friday, 28 September 2007.
Prospective buyers can register at the Customer Care Centre of the City.
It is quite clear from the above that these would not be “mixed auctions”.
It is further indicated that a “first-time buyer is allowed to pay off the full purchase price of the erf through installments of six months”.
This is however not the case as successful purchasers (first time buyers in the first phase of the auction) will have three options or methods of payments to choose from. Methods of payments are as follows:
1. CASH
1.1 The total purchase price in cash or per bank guaranteed cheque is payable within forty eight (48) hours from date of sale which would be the date of the auction.
2. INSTALLMENTS (ONCE ONLY)
2.1 The City offers the installment method of payment for one erf only to “first time purchasers” for residential properties who are approved prior to the auction to make use of the option and who do not have an existing erf loan with the Council:
2.1.1 The First Time Purchaser shall pay the full purchase price in sixty (60) equal monthly installments. The first installment will be payable within forty eight (48) hours from date of sale; and the balance of the purchase price together with interest thereon calculated monthly in advance on an annuity basis at the rate of FIFTEEN PERCENT (15 %) per annum from the date of sale of the property and payable in fifty nine (59) equal monthly installments, the subsequent installments being payable before or on the seventh day of the month following on the sale and monthly thereafter before or on the seventh day of each month.
3. RESERVATION METHOD OF SALE TO OBTAIN BANK GUARANTEE (ONCE ONLY)
3.1 Any purchaser, who does not have an existing erf loan or has previously made use of a reservation method of sale, may select to reserve the land and pay a reservation fee pending such purchaser submitting a bank guarantee within sixty days from the date of sale for the payment of the full purchase price against transfer. The option should be elected on the day of the auction, and the date of sale will also be the date of the auction:
3.1.1 The purchaser must pay the prescribed reservation fee and the total purchase price, together with interest thereon, calculated at the rate of 15 % (fifteen percent), calculated annually in advance, on an annuity basis from the date of sale of the property to payment thereof, on or before date of registration of transfer of the property into the name of the purchaser. The purchaser undertakes to provide a Bank or Financial Institution Guarantee to the seller, payable against registration of transfer, for the full purchase price and interest within sixty (60) days after having been requested to do so.
The people who want to participate in the second phase of the residential auction may pay only cash or by bank guarantee. We herewith request you to place this information in your newspaper to clear the misconception, which was created in the first place.
City of Windhoek