The high court in Johannesburg has granted banking giant FNB an order to auction off comedian David Kau’s multi-million rand home in the bustling city.
The order to sell the house, Kau’s primary residence, was granted on the 4 August.
The order, which we have seen, reads in part: “Default judgment is granted in favour of the applicant against the first respondent for the amount of R1 398 651.35. The immovable property known as … measuring 54 square metres … is declared especially executable.
“[The] applicant is authorised to issue writs of attachment calling upon the sheriff of the above honourable court to attach the property. The sheriff of the above honourable court to sell property by auction arranged in terms of the provisions of Uniform Rule 46.”
The judgement further states that the reserve price of the property should be set at over R1.9-million, adding that Kau is at liberty to prevent the sale of the property if he pays arrears and the bank’s legal costs.
Applying for the house to be placed under the hammer, FNB recoveries manager Ashraf Rocker said Kau and the banking group entered into a building loan agreement on April 26 2006.
The comedian was granted a more than R1.6-million to refurbish his house in Kyalami Estate, northern Joburg. He then used his house as security to repay the loan. He was required to pay the monthly interest rates during the building operations and after the building was completed.
After signing on the dotted line, FNB registered the loan as mortgaged bond of more than R1.6-million in the comedian’s name.
It also gave him an additional loan of R330 000.
“In terms of the mortgaged bond, the first respondent acknowledged that he is lawfully indebted and bound to the applicant in the sum of R1 662 198 and the additional amount of R333 000,” read the papers.
Kau agreed to pay the loan in over R14 000 monthly instalments but allegedly defaulted in May 2021. As of January 25 2022, Kau was over R275 000 in arrears.
Rocker said after defaulting, FNB lawyers wrote a letter to Kau and pleaded with him to settle the arrears, but he failed to do so. This left the banking giant with no option but to approach the court for a relief.
After listening to its prayers, the banking group was granted an order to sell the pad. Upon learning of the court order, Kau filed a notice of motion to rescind and set aside the judgment and a writ of execution last week.
He argued that FNB was not supposed to apply for an order because he had written a letter to the bank and arranged to pay the loan and clear the arrears in six months.
The comedian further stated that he asked the banking group to refer the matter to a debt counsellor or mediation, but his request was rejected.
Kau’s application will be heard in due course.
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