Lahja Nashuuta
From now on, no one’s home or other immovable property can be sold to settle debts without the approval of the High Court.
A judge must first verify that the debtor has no other assets, such as vehicles or equipment, that could be used to pay off the debt.
This is in terms of the High Court Amendment Act, 2024 (Act No. 2 of 2024), which officially came into effect this week.
Although the Act was signed in April 2024, it only took effect on 22 August 2025 when the government issued the commencement notice.
From that day, all new protections and procedures became binding law.
Justice minister Fillemon Wise Immanuel told Parliament this week that the law was designed to correct constitutional weaknesses in how immovable property, especially family homes, could be sold in execution to recover debts.
“At its core, the amendment rebalances the scales of justice. It protects the dignity and rights of debtors while ensuring creditors still have lawful means to recover what they are owed,” he stated.
He noted that before the amendment, creditors could proceed with the sale immediately after a default judgment, often placing families at risk of losing their homes even when there were alternative options.
“Previously, the system heavily favoured creditors. Once a default judgment was granted, a creditor could move straight to selling a debtor’s immovable property even if less severe options were available,” Immanuel said.
The minister said, “For families, this often meant losing their homes without the safeguard of a fair judicial process. Courts rightly found this approach constitutionally flawed, as it placed fundamental rights – such as access to courts, the right to a fair hearing and property protection – at risk”.
Immanuel assured the public that under the High Court Amendment Act, selling immovable property, particularly a primary residence, is treated as a measure of last resort, restoring fairness and judicial oversight to debt recovery proceedings.
He clarified that mortgage bonds remain an exception.
Properties secured by mortgage bonds are exempt from some of the new safeguards.
Creditors are not required to prove that the debtor lacks sufficient movable assets before proceeding with a sale.
“Previously, homes could be sold even if sufficient movable assets were available,” he revealed.
The Act introduces additional protections for primary residences.
“If the property at risk is a person’s main home, the court must hold a thorough inquiry under High Court rules. Only if the judge is convinced that selling the home is the most appropriate and just option may the order be granted. Previously, homes were treated like any other property, leaving families vulnerable,” Immanuel said.
To recognise that there are often less destructive ways to settle a debt, the Act empowers courts to explore alternatives, such as attaching other assets first, granting additional time to pay and authorising a voluntary sale or transferring the debt obligation to a willing relative.
The Act also grants the High Court the power to issue any other order the court finds just and practical, ensuring that justice is tailored to each situation rather than applied indiscriminately.
The reforms also introduced changes to the High Court Rules, particularly Rule 108A, which sets out clear procedures.
Creditors must make a formal application, debtors must receive proper notice, independent valuations must be filed, debtors have the right to oppose or propose alternatives, and hearings must be conducted where both sides can be heard.
In addition, the Judge President now has the authority to set reserve prices and bidding conditions, preventing homes from being sold below their value.
– lnashuuta@nepc.com.na