Can a debtor’s house be sold by another creditor where a bank has registered a bond over the property?

Last Updated On November 21, 2018

Yes. The bond gives the bank a preferential right in respect of the proceeds of the sale, but doesn’t prevent other creditors from attaching the property and selling it in execution.

The other creditor’s attorney will normally first find out what the outstanding balance on the bond is and what price the property will probably get at the sale before deciding on whether it is worthwhile to proceed With other words will their be a balance after the bank has been paid?

Many creditors will however proceed irrespective as the debtor will often pay the debt to prevent the sale of his house.