Mekwe v Geyer (A447/2017, 2595/2015) [2018] ZAGPPHC 778 (25 September 2018)

Mekwe v Geyer (A447/2017, 2595/2015) [2018] ZAGPPHC 778 (25 September 2018)

The court held that the sale agreement expressly provided that all risks of ownership would pass to the purchaser only on the date of transfer. Accordingly, the respondent bore the risk and was obliged to maintain the property until transfer. The respondent is liable for any damages proven to have occurred to the property after the conclusion of the sale agreement but before registration of transfer. The court a quo misdirected itself by failing to interpret the contract in light of its express terms and relevant legal principles. The matter is remitted for determination of the merits and quantum of damages.

Citation
[2018] ZAGPPHC 778
Parties
Appellant: Nono Eveline Mekgwe; Respondent: Dennis Ivan Geyer
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
25 September 2018
Case Number
A447/2017, 2595/2015
Procedural Posture
Civil Appeal / Appeal From Magistrates Court Judgment
Outcome
Appeal upheld; magistrate's decision set aside; respondent held liable for damages proven to have occurred to the property after sale but before transfer.
Judges
Bhoola, N Janse van Nieuwenhuizen
Legal Topics
Sale of Immovable Property, Risk of Ownership, Contractual Interpretation, Damages for Breach, Maintenance Obligation
Land and Property Civil Procedure Sale of Immovable Property Risk of Ownership Contractual Interpretation Damages for Breach Maintenance Obligation

Case Brief

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Parties

Nono Eveline Mekgwe

Appellant

Dennis Ivan Geyer

Respondent

Procedural Posture

Civil Appeal / Appeal From Magistrates Court Judgment

Legal Issues

  1. 1 Whether the written sale agreement imposed an obligation on the seller to maintain the immovable property until transfer.
  2. 2 Whether the seller is liable for damages to the property occurring after conclusion of the sale agreement but before registration of transfer.
  3. 3 What is the legal meaning and effect of the 'risk of ownership' clause in the sale agreement.

Ratio Decidendi

The court held that the sale agreement expressly provided that all risks of ownership would pass to the purchaser only on the date of transfer. Accordingly, the respondent bore the risk and was obliged to maintain the property until transfer. The respondent is liable for any damages proven to have occurred to the property after the conclusion of the sale agreement but before registration of transfer. The court a quo misdirected itself by failing to interpret the contract in light of its express terms and relevant legal principles. The matter is remitted for determination of the merits and quantum of damages.

Court Disposition

Appeal upheld; magistrate's decision set aside; respondent held liable for damages proven to have occurred to the property after sale but before transfer.

Orders

  • The appeal is upheld and the respondent is directed to pay the costs of the appeal.
  • The decision of the magistrate is set aside and replaced with an order that the defendant is liable for any damages that may be proven to have occurred to the immovable property after the conclusion of the sale agreement but prior to registration of the property into the plaintiff's name.