Clear Mandate Properties 110 CC v Shavani (70564/2013) [2014] ZAGPPHC 940 (26 November 2014)

Clear Mandate Properties 110 CC v Shavani (70564/2013) [2014] ZAGPPHC 940 (26 November 2014)

The court found that the agreement of sale was validly signed by a member of the applicant close corporation, Mrs Hakimjee, who was authorised to act on behalf of the corporation. Section 54 of the Close Corporations Act provides that a member is an agent and does not require written authority to conclude such contracts. The suspensive condition was fulfilled as the loan was approved and draft letters of guarantee were issued by HBZ Bank. The relief sought did not require performance of any act in the deeds registry, so notice to the Registrar of Deeds was not necessary. All defences raised by the respondent were dismissed, and the applicant was entitled to the relief sought.

Citation
[2014] ZAGPPHC 940
Parties
Applicant: Clear Mandate Properties 110 CC; Respondent: Tshinyalani Charlotte Shavani
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
26 November 2014
Case Number
70564/2013
Procedural Posture
Urgent Application / Application for Declaratory and Specific Performance
Outcome
Application granted. The agreement of sale is declared valid and binding. The respondent is ordered to give effect to the agreement and transfer the property to the applicant, failing which the Sheriff is authorised to act. Costs awarded against the respondent.
Judges
D S Fourie
Legal Topics
Alienation of Land Act, Specific Performance, Locus Standi, Suspensive Condition, Deeds Registries Act
Land and Property Civil Procedure Alienation of Land Act Specific Performance Locus Standi Suspensive Condition Deeds Registries Act

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Parties

Clear Mandate Properties 110 CC

Applicant

Tshinyalani Charlotte Shavani

Respondent

Procedural Posture

Urgent Application / Application for Declaratory and Specific Performance

Legal Issues

  1. 1 Whether the written agreement of sale for immovable property is valid and binding on the parties.
  2. 2 Whether the applicant, a close corporation, had locus standi to enforce the agreement.
  3. 3 Whether the agreement complied with section 2(1) of the Alienation of Land Act.

Ratio Decidendi

The court found that the agreement of sale was validly signed by a member of the applicant close corporation, Mrs Hakimjee, who was authorised to act on behalf of the corporation. Section 54 of the Close Corporations Act provides that a member is an agent and does not require written authority to conclude such contracts. The suspensive condition was fulfilled as the loan was approved and draft letters of guarantee were issued by HBZ Bank. The relief sought did not require performance of any act in the deeds registry, so notice to the Registrar of Deeds was not necessary. All defences raised by the respondent were dismissed, and the applicant was entitled to the relief sought.

Court Disposition

Application granted. The agreement of sale is declared valid and binding. The respondent is ordered to give effect to the agreement and transfer the property to the applicant, failing which the Sheriff is authorised to act. Costs awarded against the respondent.

Orders

  • It is declared that the agreement of sale concluded on 9 September 2013 in respect of Erf 539, Randfontein Township, is valid and binding on the parties.
  • Against the applicant's tender to pay the purchase price of R1,620,000.00 and any further amounts due for transfer duty and/or VAT, the respondent is ordered within 15 days to give effect to the agreement and perform all acts necessary to transfer the property to the applicant.