Hertta-Maria Amutenja
Family homes will no longer be auctioned below market value following the enforcement of the High Court Amendment Act of 2024, which came into effect on 22 August.
Justice and labour relations minister Filimon Wise Immanuel told parliament that the reform closes constitutional gaps in the sale of immovable properties to recover debts.
He said no property can now be sold in execution without approval from a High Court judge, who must first confirm that a debtor has no sufficient movable assets to cover the debt.
“The Amendment Act steps in to restore fairness. It ensures that selling someone’s immovable property, especially their primary residence, is not treated as a routine procedure but as a measure of last resort,” Immanuel said.
The law gives the judge president powers to set reserve prices and impose bidding conditions to stop homes from being sold for a fraction of their value.
Where a debtor’s main residence is at stake, courts must hold an inquiry before granting approval. Judges must consider alternatives, such as attaching other assets, extending payment deadlines, authorising voluntary sales, or transferring the debt to a willing relative.
Rule 108A of the High Court Rules was introduced to strengthen protection. It requires creditors to file formal applications, provide independent valuations, and notify debtors, who now have the right to oppose or propose alternatives.
Immanuel said the law rebalances a system that previously favoured creditors, who could obtain default judgements and proceed directly to auctioning immovable property. Courts had found the practice constitutionally flawed, as it threatened the right to property and a fair hearing.
Mortgage bonds remain exempt, but even in such cases, family homes will now be subject to judicial oversight. The Act was signed into law in April 2024 but only took effect last month after the government issued the commencement notice.
“In simple terms, a person’s home can no longer be lost overnight without a judge carefully weighing the options first,” Immanuel said.
