Kgoele v Key Results Properties (Pty) Ltd and Others (94127/2016 ; 64481/2017) [2024] ZAGPPHC 675 (1 July 2024)

Kgoele v Key Results Properties (Pty) Ltd and Others (94127/2016 ; 64481/2017) [2024] ZAGPPHC 675 (1 July 2024)

The court found that the applicant and her late husband were induced by fraudulent misrepresentation to sign documents they believed were for a loan to save their home from auction, not for the sale or lease of the property. The evidence and circumstances did not support any genuine intention by the applicant to sell or rent her property to the first respondent. The contracts and subsequent transfer were tainted by fraud and did not meet the standards of legally binding agreements. The respondent's reliance on the caveat subscriptor rule was rejected, as the applicant's mistake was reasonable and induced by misrepresentation. The eviction order was erroneously obtained, as the first...

Citation
[2024] ZAGPPHC 675
Parties
Applicant: Mmamabiri Leah Kgoele; Respondent: Key Results Properties (Pty) Ltd; Respondent: Ernst Phillipus Blignaut; Respondent: The Registrar of Deeds Pretoria; Respondent: South African Home Loans
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
1 July 2024
Case Number
94127/2016 ; 64481/2017
Procedural Posture
Review Application / Judgment After Opposed Application
Outcome
Application granted. Sale and lease agreements declared void. Eviction order rescinded. Property restored to applicant free from mortgage and obligations. Costs awarded on attorney and client scale.
Judges
Leso
Legal Topics
Fraudulent Misrepresentation, Rescission of Eviction Order, Deeds Registries Act, Contractual Capacity, Public Policy in Contract, Vindication of Property
Land and Property Civil Procedure Commercial and Corporate Fraudulent Misrepresentation Rescission of Eviction Order Deeds Registries Act Contractual Capacity Public Policy in Contract +1 more

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Parties

Mmamabiri Leah Kgoele

Applicant

Key Results Properties (Pty) Ltd

Respondent

Ernst Phillipus Blignaut

Respondent

The Registrar of Deeds Pretoria

Respondent

South African Home Loans

Respondent

Procedural Posture

Review Application / Judgment After Opposed Application

Legal Issues

  1. 1 Whether the applicant made a case for cancellation of the title deed in the name of the first respondent and restoration of the property in her name.
  2. 2 Whether the sale and lease agreements were induced by fraudulent misrepresentation and are thus void.
  3. 3 Whether the eviction order granted against the applicant should be rescinded.

Ratio Decidendi

The court found that the applicant and her late husband were induced by fraudulent misrepresentation to sign documents they believed were for a loan to save their home from auction, not for the sale or lease of the property. The evidence and circumstances did not support any genuine intention by the applicant to sell or rent her property to the first respondent. The contracts and subsequent transfer were tainted by fraud and did not meet the standards of legally binding agreements. The respondent's reliance on the caveat subscriptor rule was rejected, as the applicant's mistake was reasonable and induced by misrepresentation. The eviction order was erroneously obtained, as the first...

Court Disposition

Application granted. Sale and lease agreements declared void. Eviction order rescinded. Property restored to applicant free from mortgage and obligations. Costs awarded on attorney and client scale.

Orders

  • The eviction order granted on 21 February 2019 is rescinded and set aside.
  • The transfer of the property described as Erf 1[...], Theresapark Extension 1, Pretoria, from the applicant to the first respondent is declared void ab initio and cancelled.