Royal Anthem Investments 129 (Pty) Ltd v Lau (941/2012) [2014] ZASCA 19; 2014 (3) SA 626 (SCA) (26 March 2014)

Royal Anthem Investments 129 (Pty) Ltd v Lau (941/2012) [2014] ZASCA 19; 2014 (3) SA 626 (SCA) (26 March 2014)

The Supreme Court of Appeal held that the sale agreement lapsed due to non-fulfilment of the suspensive condition relating to the respondents' ability to secure a loan. The deposit and transfer duty paid by the respondents were held in trust by the conveyancing attorney and were never received by the appellant. Clause 6 of the agreement did not entitle the appellant to retain these amounts, as it applied only to sums actually received and held by the appellant. The respondents were entitled to repayment of both the deposit and the transfer duty, with interest calculated according to the actual investment rate up to the date of demand and thereafter at the prescribed legal rate. The appeal...

Citation
[2014] ZASCA 19
Parties
Appellant: Royal Anthem Investments 129 (Pty) Ltd; Respondent: Yuen Fan Lau; Respondent: Shun Cheng Liang
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
26 March 2014
Case Number
941/2012
Procedural Posture
Civil Appeal / Appeal From North Gauteng High Court, Pretoria
Outcome
Appeal dismissed except for amendments to the high court order regarding interest calculation and the party responsible for payment.
Judges
Ponnan, Mhlantla, Leach, Mathopo, Mocumie
Legal Topics
Sale of Immovable Property, Deposit Repayment, Transfer Duty, Conveyancing Attorney Liability
Land and Property Civil Procedure Sale of Immovable Property Deposit Repayment Transfer Duty Conveyancing Attorney Liability

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 4 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

Royal Anthem Investments 129 (Pty) Ltd

Appellant

Yuen Fan Lau

Respondent

Shun Cheng Liang

Respondent

Procedural Posture

Civil Appeal / Appeal From North Gauteng High Court, Pretoria

Legal Issues

  1. 1 Whether the appellant is entitled to retain the deposit and transfer duty paid by the respondents after the sale agreement lapsed.
  2. 2 Whether the conveyancing attorney is obliged to repay the deposit and transfer duty to the purchaser when the sale is cancelled.
  3. 3 Whether the contractual clauses permit the appellant to keep the amounts paid by the respondents.

Ratio Decidendi

The Supreme Court of Appeal held that the sale agreement lapsed due to non-fulfilment of the suspensive condition relating to the respondents' ability to secure a loan. The deposit and transfer duty paid by the respondents were held in trust by the conveyancing attorney and were never received by the appellant. Clause 6 of the agreement did not entitle the appellant to retain these amounts, as it applied only to sums actually received and held by the appellant. The respondents were entitled to repayment of both the deposit and the transfer duty, with interest calculated according to the actual investment rate up to the date of demand and thereafter at the prescribed legal rate. The appeal...

Court Disposition

Appeal dismissed except for amendments to the high court order regarding interest calculation and the party responsible for payment.

Orders

  • Paragraphs 1 and 2 of the high court order of 6 June 2012 are amended: (1) The first defendant is ordered to pay the plaintiffs R720,000; (a) plus whatever interest accrued on R720,000 pursuant to its investment in an interest-bearing account up to and including 9 December 2009; (b) plus interest on R720,000 at...
  • The appeal is otherwise dismissed with costs, including costs of two counsel, taxed on the scale as between attorney and client.