The following is an explanation of the sale or disposal of seized goods. We will look at valuations; notice of impending sale as well as sale options; additional charges/disbursements which can be incurred and allocation of any funds derived from the sale.
Notice of Sale
Before goods can be sold written notice must be given to the defendant(s) by the enforcement agent detailing the time, date and location of the sale. In the notification the defendant must be made aware of the full amount oustanding and the deadline for which payment must be made to prevent the sale of the goods.
Enforcement agents are required to obtain a valuation. The defendant is also afforded the opportunity to obtain their own independent valuation. The valuation should, however, be based on auction value not retail value. The valuation is given to the defendant in writing on the notice of sale. We are obliged to seek the bst sale price for goods and will always endeavour to do so. That said, we have no control over auction sale prices.
Sales do not have to take place solely at auctions. An enforcement officer may make an application to the court for alternative methods such as by advertisement or sealed bids.
Online auction fees – up to 7.5% of sale
Advertising costs and auctioneer’s fees
Allocation of monies derived from sale
Under insolvency legislation the enforcement officer is prevented from distributing funds for 14 days. Funds from the sale are allocated on a pro-rata basis to cover the outstanding amount owed to the claimant and any associated statutory fees. Once these have been discharged in full any surplus funds are allocated to co-ownersn (if there are any) and finally the remainder given to the defendant.