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My name is Tsikadzashe Nemato. I am studying for a Master of Business Administration (MBA) degree at the University of Zimbabwe Business School (UZBS) specializing in finance. I am currently conducting data gathering for my MBA dissertation entitled, “Real estate pricing tool for determining sale in execution auction discount for residential real estate in Tshwane Metropolitan City, in the Republic of South Africa”. You have been selected to be part of this study. For that reason, you are kindly requested to participate in this study by answering the questions presented in this questionnaire. The information you will provide will be treated confidentially and used strictly for academic purposes. Participation is purely voluntary, and no form of compensation or reward should be expected. Nevertheless, your participation is expected to bring several benefits to both the homeowners who acquire their houses through the mortgage process and other key stakeholders in the real estate industry in South Africa. The findings will help in designing of a tool that will make it easier to determine sale-in-execution discount for real estate that is sold through the sale in execution auction (SIEA) process in South Africa.

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* 7. Show whether you agree if any of the procedures listed below are followed by the banks, sheriffs, or real estate agents when residential property is placed under sale in execution auction.

  Strongly disagree Disagree Neutral Agree Strongly agree
Sale in execution procedure for  property considered Cause for Action (Proof that a loan agreement was in arrears)
Sale in execution procedure for  property considered Locus Standi (right to institute legal proceedings)
Sale in execution procedure for  property considered Jurisdiction (power of a court to hear and determine a matter)
Sale in execution procedure for  property considered Summons (defaulting debtors were inform of commencement of legal proceedings)
Sale in execution procedure for property considered Service (defaulting debtor received  court documents before)
Sale in execution procedure for  property considered 1. Money judgment
Sale in execution procedure for property considered 2. Obtaining a valid warrant or writ of execution
Sale in execution procedure for  property considered 3. Attaching the judgment debtor’s movable or immovable property
Sale in execution procedure for  property considered 4. Public auction of the attached property

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* 8. Show whether any of the processes listed below are considered by the banks, sheriffs or real estate agents in setting the reserve price when  residential property is placed under sale in execution auction?

  Strongly disagree Disagree Neutral Agree Strongly Agree
Property is advertised in the Government Gazette and local newspapers
Sheriff charges commission
Market value is considered
Mandatory reserve price is always provided
Transfer and other costs and fees are considered

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* 9. Indicate whether any of the following auction characteristics(data) were considered by the banks, sheriffs or real estate agents in determining  sale-in-discount rate for your residential property ?

  Strongly disagree Disagree Neutral Agree Strongly agree
Market value
 Auction appraisal value (Value determined before auction)
Difference between the market value and the opening bid
Average number of bidders
 Auction period (No. of days from when the auction start to the auction sale day)

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* 10. Show whether any of the physical properties of real estate provided below were considered by the banks, sheriffs or real estate agents when determining sale-in-execution discount rate for your residential property ?

  Strongly disagree Disagree Neutral Agree Strongly agree
Outstanding rates and taxes (including non-payment of management fees)
Legal superficies (rights to own properties on the land of another person, e.g liens & servitudes) 
Proximity to amenities 
Distance from the city 
Technical/repair condition 
Age of building 
Exclusive area 

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* 11. Are any of the macro-economic variables provided below considered by the banks, sheriffs or real estate agents when setting reserve price  for  residential property ?

  Strongly disagree Disagree Neutral Agree Strongly disagree
Consumer price Index 
Interest rate  
Demand and supply 

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* 12. The reserve price considered by the banks, sheriffs or real estate agents when selling residential property as a percentage of market value is as follows

  Strongly disagree Disagree Neutral Agree Strongly disagree
Reserve price is approximately less than 10% of the market value
Reserve price is between 11%-30% of the market value
Reserve price is between 31%-50% of the market value
Reserve price is between 51%-70% of the market value
Reserve price is above 70% of the market value

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* 13. Of the factors listed below show whether you agree or not if they have contributed to lack of a standardised procedure for determining the reserve price and discount rate for residential real estate in South Africa?

  Strongly disagree Disagree Neutral Agree Strongly disagree
Lack of Court procedures to fix the reserve price
Lack of standardised Industry practice
Limited markets for sale in execution auctions/mortgaged properties
Information asymmetry between banks(mortgagee) and buyer (mortgagor)
Lack of financial muscle to hire professional valuers by the defaulting mortgagor
Lack of financial muscle to hire competent lawyers to contest unilaterally set low reserve prices by banks
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