Basfour 2994 (Pty) Ltd v Registrar of Deeds: Bloemfontein (497/2014) [2014] ZAFSHC 38 (20 March 2014)

Basfour 2994 (Pty) Ltd v Registrar of Deeds: Bloemfontein (497/2014) [2014] ZAFSHC 38 (20 March 2014)

The court held that section 8(5) read with section 8(7) of the Free State Townships Ordinance 9 of 1969 does not prohibit contracts for the sale of land in a township to be established that are subject to suspensive conditions requiring fulfilment of statutory requirements. Such contracts do not come into force until the conditions are fulfilled, and therefore are not null and void. The Registrar of Deeds may not refuse to register transfers based on underlying deeds of sale subject to suspensive conditions once those conditions have been fulfilled. The resolution adopted at the Registrar's conference (RCR 45/2012) was based on an erroneous understanding of the law and cannot be endorsed....

Citation
[2014] ZAFSHC 38
Parties
Applicant: Basfour 2994 (Pty) Ltd; Respondent: Registrar of Deeds: Bloemfontein
Court
Free State High Court, Bloemfontein
Jurisdiction
South Africa
Judgment Date
20 March 2014
Case Number
497/2014
Procedural Posture
Urgent Application / Unopposed Motion Court; Final Order Granted
Outcome
Application granted; declaratory and prohibitory orders issued in favour of the applicant.
Judges
J P Daffue
Legal Topics
Townships Ordinance, Suspensive Conditions, Registration of Transfer, Nullity of Contract, Statutory Interpretation
Land and Property Civil Procedure Townships Ordinance Suspensive Conditions Registration of Transfer Nullity of Contract Statutory Interpretation

Case Brief

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Parties

Basfour 2994 (Pty) Ltd

Applicant

Registrar of Deeds: Bloemfontein

Respondent

Procedural Posture

Urgent Application / Unopposed Motion Court; Final Order Granted

Legal Issues

  1. 1 Whether contracts for the sale of land in a township to be established, entered into before fulfilment of statutory requirements but subject to suspensive conditions, are null and void under section 8(5) read with section 8(7) of the Free State Townships Ordinance 9 of 1969.
  2. 2 Whether the Registrar of Deeds may refuse to register transfers based on such contracts.

Ratio Decidendi

The court held that section 8(5) read with section 8(7) of the Free State Townships Ordinance 9 of 1969 does not prohibit contracts for the sale of land in a township to be established that are subject to suspensive conditions requiring fulfilment of statutory requirements. Such contracts do not come into force until the conditions are fulfilled, and therefore are not null and void. The Registrar of Deeds may not refuse to register transfers based on underlying deeds of sale subject to suspensive conditions once those conditions have been fulfilled. The resolution adopted at the Registrar's conference (RCR 45/2012) was based on an erroneous understanding of the law and cannot be endorsed....

Court Disposition

Application granted; declaratory and prohibitory orders issued in favour of the applicant.

Orders

  • It is declared that section 8(7) read with section 8(5) of the Free State Townships Ordinance 9 of 1969 does not prohibit contracts signed before fulfilment of the requirements in section 8(5)(b)(iv), provided such contracts are subject to suspensive conditions suspending legal operation until the requirements are...
  • The respondent is prohibited from refusing to register transfers on the basis that such contracts are null and void.