Download PDF

South Africa Judgment

Free State High Court, Bloemfontein

Smith v Matala (208/2003) [2004] ZAFSHC 127 (2 September 2004)

On this page

Professional case brief

Research organized from the available case record

Source document

01

Holding and result

The appellant acted as an estate agent as defined in the Estate Agency Affairs Act 112 of 1976 and was not in possession of a valid fidelity fund certificate at the time of the transaction. The payment claimed constituted commission for estate agency services. In terms of section 34A of the Act, the appellant was not entitled to any remuneration or payment for such services without a valid certificate. The respondent was entitled to raise the absence of the certificate as a defence, and minor discrepancies in pleadings did not prejudice the appellant. The magistrate was correct in dismissing the appellant's claim.

Court disposition

Appeal dismissed with costs.

Orders

  • The appeal is dismissed with costs.

02

Material facts

Parties

Margot Smith

Appellant Counsel: JY Claasen

Ashrif Matala

Respondent Counsel: L Le R Pohl

Amounts and remedies

  • Claimed Commission: ZAR 50,000
  • Purchase Price of Property: ZAR 1,300,000

03

Procedural history

  1. Posture

    Civil Appeal / Appeal From Magistrate's Court Judgment

04

Questions and positions

Legal issues

Party arguments

Applicant
The appellant argued that the agreement with the respondent was not a typical estate agency transaction, but rather a personal arrangement to persuade another buyer to withdraw, enabling the respondent to purchase the property. She relied on Rogut v Rogut, contending that she acted in her personal capacity and not as an estate agent, and thus the statutory requirements did not apply.
Respondent
The respondent maintained that the appellant acted as an estate agent throughout the transaction and was not in possession of a valid fidelity fund certificate as required by the Estate Agency Affairs Act. He argued that the payment claimed was commission for estate agency services and, in terms of the Act, the appellant was not entitled to any remuneration or payment.

05

Court’s reasoning

  1. 01

    Estate Agency Affairs Act 112 of 1976, section 26

    No person may perform any act as an estate agent unless a valid fidelity fund certificate has been issued to them.

  2. 02

    Estate Agency Affairs Act 112 of 1976, section 34A

    An estate agent is not entitled to any remuneration or payment arising from estate agency services unless a valid fidelity fund certificate was held at the time of the act.

  3. 03

    Sentrachem Bpk v Wenhold 1995 (4) SA 312 (A)

    Minor discrepancies between pleadings and evidence should be overlooked if no prejudice is caused to the opposing party.

  4. 04

    Take and Safe Trading CC v Standard Bank of SA Ltd 2004 (4) SA 1 (SCA)

    A judge must actively manage the trial and refuse to allow irrelevant evidence.

  5. 05

    Ronstan Investments (Pty) Ltd and Another v Littlewood 2001 (3) SA 555 (SCA)

    Where a party acts as an estate agent without a fidelity fund certificate, they are not entitled to claim commission.

06

Ratio, limits and disposition

Ratio decidendi

The appellant acted as an estate agent as defined in the Estate Agency Affairs Act 112 of 1976 and was not in possession of a valid fidelity fund certificate at the time of the transaction. The payment claimed constituted commission for estate agency services. In terms of section 34A of the Act, the appellant was not entitled to any remuneration or payment for such services without a valid certificate. The respondent was entitled to raise the absence of the certificate as a defence, and minor discrepancies in pleadings did not prejudice the appellant. The magistrate was correct in dismissing the appellant's claim.

Obiter and limits

  • Judicial officers should not allow inadmissible or irrelevant evidence and must actively manage proceedings to ensure fairness and efficiency.
  • Minor deviations between pleadings and evidence are permissible if no prejudice results, especially in magistrate's court proceedings.

Court disposition

Appeal dismissed with costs.

  • The appeal is dismissed with costs.

Source and reliance status

Free State High Court, Bloemfontein

This page organises the available record for research. Confirm quotations, current status, and subsequent treatment against the official source before relying on the case.

Judgment reading view

Judgment text

The complete available source text.

Source document

Free State High Court, Bloemfontein

Judgment

[2004] ZAFSHC 127

IN DIE HOOGGEREGSHOF VAN SUID-AFRIKA

(ORANJE VRYSTAATSE PROVINSIALE AFDELING)

Appèl No.: 208/2003

In die appèl van:

MARGOT SMITH Appellant

En

ASHRIF MATALA Respondent

CORAM: HANCKE R et RAMPAI R

UITSPRAAK:

HANCKE R

AANGEHOOR OP: 30 AUGUSTUS 2004

GELEWER OP: 2 SEPTEMBER 2004

Appellant (as eiseres) het ‘n bedrag van R50 000,00 in ‘n landdroshof van die respondent (as verweerder) gevorder, op grond van ‘n onderneming wat respondent aan haar gegee het. Die tersaaklike gedeeltes van haar Besonderhede van Vordering lees soos volg:

3. “Plaintiff is an Estate Agent and in this capacity she marketed the building known as Franza Building, Reitz Street, Kroonstad, to Defendant.

4. Defendant, upon introduction by plaintiff, decided to purchase the said building for an amount of approximately R1,3 million.

5. The sale has subsequently been registered into the name of Defendant or in the name of a company or close corporation in which Defendat has an interest.

6. Plaintiff had another buyer who was also interested in buying the property and Defendant undertook to pay Plaintiff an amount of R 50,000.00 towards her commission, should she succeed in selling the building to Defendant in stead of the original buyer that Plaintiff had.

7. Plaintiff succeeded and Defendant gave her a written undertaking that he would pay her R50, 000.00 in cash as soon as the deal between him and the seller has been finalized and registered.

8. The deal has since been finalized and registered in the name of Defendant.”

In ‘n versoek om nadere besonderhede deur die respondent word die volgende vraag gevra:

“Was eiseres te alle relevante tye in besit gewees van ‘n geldige Getrouheidsfondssertifikaat soos uitgereik ooreenkomstig artikel 26(a) van Wet 112 van 1976?”

Waarop applikant soos volg antwoord:

“Eiseres was in diens van Riël Viviers Eiendomme wat nou bekend staan as Prime Spot Eiendomme en het sy dekking gehad in terme van hulle Getrouheidsfonds.”

Op ‘n vraag of die mandaat om die gebou te verkoop deur die eienaar of respondent gegee is, antwoord applikant:

“Mnr Francois Geldenhuys, die vorige eienaar het eiseres persoonlik ‘n mandaat gegee om die gebou te verkoop.”

In haar nadere besonderhede beweer applikant verder die volgende:

“4.1 Eiseres het verweerder geboue in Kroonstad gewys en hom meegedeel dat sy sopas die Franza Gebou verkoop het, waarop verweerder vir Eiseres meegedeel het dat hy graag die gebou wil koop en dat sy alles in haar vermoë moet doen sodat hy die gebou kan koop. Hy het onderneem om die aanbod van R1,2 Miljoen te verhoog na R1,3 Miljoen en sou bo en behalwe die kommissie wat mnr Geldenhuys, die Verkoper, betaal, aan Eiseres persoonlik ‘n bedrag van R50 000,00 betaal ...”

asook

“7.3 Verweerder wou baie graag die eiendom gehad het en het gedink dat dit ‘n goeie koop is en was bereid om addisionele kommissie aan eiseres persoonlik te betaal.”

Uit die voorgaande is dit duidelik dat appellant se beroep dié van ‘n eiendomsagent is en dat tydens die plaasvind van die huidige transaksie sy nie in besit was van ‘n geldige Getrouheidsfondssertifikaat nie.

Alhoewel sy dit tydens die verhoor anders wou inkleur, blyk dit duidelik uit die pleitstukke dat die R50 000.00 beskou is as betaling van “commission” of as “addisionele kommissie”.

Die Wet op Eiendomsagentskapsaangeleenthede, Wet 112 van 1976 is hier van belang, en is dit nodig om na die volgende artikels te verwys:

Artikel 1: Woordomskrywing:

“Eiendomsagent”

“(a) Iemand wat, met die oog op winsbejag vir eie rekening òf in vennootskap, op enige wyse hom voordoen as iemand wat, òf regstreeks òf onregstreeks adverteer dat hy, in opdrag van of namens iemand anders –

onroerende goed of ‘n besigheidsonderneming koop of verkoop of in die openbaar as te koop ten toon stel of ten opsigte daarvan onderhandel of ‘n koper of verkoper daarvoor werf of onderneem of aanbied om ‘n koper of verkoper daarvoor te werf; of …”

(My onderstreping)

ARTIKEL 26 :

VERBOD OP LEWERING VAN DIENSTE AS EIENDOMSAGENT ONDER SEKERE OMSTANDIGHEDE:-

-“Niemand mag enige handeling as ‘n eiendomsagent verrig nie tensy ‘n geldige Getrouheidsfondssertifikaat aan hom of haar en aan elke persoon wat as ‘n eiendomsagent in sy of haar diens is en, indien sodanige persoon

(a) ‘n Beslote Korporasie is, aan elke lid bedoel in paragraaf (b) van die omskrywing van “eiendomsagent van daardie korporasie uitgereik is.”

Artikel 34 (a) wat ingevoeg is in 1986, en vervang is in 1998, onder die opskrif:

“EIENDOMSAGENT ONDER SEKERE OMSTANDIGHEDE NIE OP VERGOEDING GEREGTIG NIE.”

lui soos volg:

(i) “Geen eiendomsagent is geregtig op enige vergoeding of ander betaling ten opsigte van of voortspruitende uit die verrigting van enige handeling bedoel in sub-paragraaf (i), (ii), (iii) of (iv) van paragraaf (a) van die omskrywing van “eiendomsagent” nie, tensy ‘n geldige Getrouheidsfondssertifikaat ten tyde van die verrigting van sodanige handeling uitgereik was aan –

sodanige eiendomsagent; en

…”

Mnr Claasen, advokaat namens appellant, het betoog dat die appellant se ooreenkoms met die respondent nie ‘n gewone eiendomstransaksie in die spreekwoordelike sin was nie en dat die ooreenkoms ingehou het dat sy ‘n koper moes oorreed om te kanselleer ten einde die verweerder in staat te stel om die gebou in die hande te kry. Hy het ook gesteun op die beslissing van ROGUT v ROGUT 1982 (3) SA 928 (A) en aangevoer dat appellant die ooreenkoms in haar persoonlike hoedanigheid, en nie as eiendomsagent, met die respondent aangegaan het. In laasgenoemde beslissing is gevind dat die respondent nie voorgedoen het (“hold himself out”) as ‘n persoon wat onroerende eiendom verkoop nie en dat hy dus nie getref word deur die bepalings van die destydse artikel 34 van Wet 112 van 1976.

In die huidige saak is dit duidelik dat die appellant deurgaans opgetree het as ‘n eiendomsagent soos omskryf in Wet 112 van 1976, en dat sy nie in besit was van ‘n Getrouheidsfondssertifikaat soos bedoel in voormelde Wet nie. Sy was ook besig om ‘n handeling te verrig as ‘n eiendomsagent. Dit is ook belangrik om daarop te let dat die Rogut-saak die bepalings van Wet 112 van 1976 moes interpreteer, welke Wet geen voorsiening gemaak het dat ‘n persoon wat artikel 26 daarvan oortree nie sy kommissie kan verhaal nie. Vergelyk p. 940 H van daardie uitspraak. Verder, wat die huidige saak betref, is dit duidelik dat die appellant besig was om ‘n handeling te verrig as ‘n eiendomsagent en was sy nié geregtig “op enige vergoeding of ander betaling” soos bedoel in artikel 34 A van Wet 112 van 1976. Vergelyk RONSTAN

INVESTMENTS (PTY) LTD AND ANOTHER v LITTLEWOOD 2001 (3) SA 555 (HHA) te 559 F tot 560 C; 562 G.

Mnr Claasen het in sy betoog, alhoewel nie met oorgawe nie, ook daarop gewys dat dit nooit respondent se saak op die pleitstukke was dat die appellant nie oor ‘n Getrouheidsfondssertifikaat beskik en derhalwe nie geregtig was om dit as ‘n verweer te opper nie.

Dit blyk egter dat hierdie aspek reeds tydens die nadere besonderhede geopper was asook deur respondent se regsverteenwoordiger tydens kruisverhoor, sonder enige beswaar vanaf die appellant se regsverteenwoordiger en dat die werklike geskilpunt tussen die partye gedurende die verloop van die verhoor uitgepluis is. SENTRACHEM BPK v WENHOLD, 1995(4) SA 312 (A) te 318J – 320A.

Pleitstukke in die landdroshof moet nie gefynkam word vir gebreke, of met ‘n vergrootglas ontleed word nie. Solank daar nie sprake is van nadeel vir die teenkant, soos in die huidige saak, behoort geringe afwykings tussen die getuienis en pleitstukke, oor die hoof gesien te word.

Ten slotte wil ek ‘n opmerking maak oor een aspek wat in die verhoor gevoer was. Die herverhoor van appellant se prokureur beslaan vier bladsye vrae wat hy aan sy kliënt gestel het wat hoofsaaklik òf leidend was òf regsaspekte geopper het, welke vrae glad nie toelaatbaar was nie. Alhoewel die respondent se prokureur nie daarteen beswaar gemaak het nie, behoort die landdros in hierdie omstandighede nie agteroor te sit en die ontoelaatbare vrae toe te laat nie. In TAKE AND SAFE TRADING CC v STANDARD BANK OF SA LTD 2004(4) SA 1 (SCA) verklaar Harms A.R. op 4 F – G die volgende:

“a Judge is not simply a “silent umpire”. A Judge “is not a mere umpire to answer the question “How’s that?”” Lord Denning once said. Fairness of court proceedings requires of the trier to be actively involved in the management of the trial, to control the proceedings, to ensure that public and private resources are not wasted, to point out when evidence is irrelevant, and to refuse to listen to irrelevant evidence. A supine approach towards litigation by judicial officers is not justifiable either in terms of the fair trial requirement or in the context of resources.”

Wat die meriete betref het die landdros geensins fouteer om die appellant se vordering van die hand te wys nie.

Bygevolg word die appèl van die hand gewys met koste.

___

S.P.B.

HANCKE R

EK STEM SAAM:

______

M.H.

RAMPAI R

Namens Appellant: Advokaat JY Claasen

i.o.v.

Naudes

BLOEMFONTEIN

Namens Respondent: Advokaat L Le R Pohl

Honey Prokureurs

/ec

Source wording is retained. Consult the source document for its original formatting and pagination.

Authorities

Authorities used by the court

Cases, legislation, regulations, and constitutional provisions identified in the available record.

Rogut v Rogut 1982 (3) SA 928 (A)

Case cited

Ronstan Investments (Pty) Ltd and Another v Littlewood 2001 (3) SA 555 (SCA)

Case cited

Sentrachem Bpk v Wenhold 1995 (4) SA 312 (A)

Case cited

Take and Safe Trading CC v Standard Bank of SA Ltd 2004 (4) SA 1 (SCA)

Case cited

Estate Agency Affairs Act 112 of 1976

Legislation

Legislation referenced in the available case record.

Case-aware research

Ask AI about this case

The judgment and available research above are public. New questions open in a separate private conversation grounded in this case.

About this LexChat collection

This page organizes the available case record for research. Verify quotations, current status, and subsequent treatment against the source document. Corrections can be reported to hello@esheria.ai.

Legal information, not legal advice. Research summaries do not replace the judgment.