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South Africa Judgment

North Gauteng High Court, Pretoria

Tapala and Another v Tlebetla and Others (89400/16) [2019] ZAGPPHC 46 (22 February 2019)

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Source document

01

Holding and result

The court found that both the sale to the first respondent and the sale to the first applicant were in contravention of section 10A(1) of the Housing Act, as neither transaction involved the requisite offer to the provincial housing department nor its consent. The deceased, as the initial owner, was expressly prohibited from alienating the property within eight years of transfer. The registration of the property in the name of the first respondent was therefore unlawful. The court held that the transfer and registration should be set aside, and directed the relevant authorities to provide a comprehensive report on the sale of state-subsidised properties and the effect of non-compliance with the Housing Act. The Registrar of Deeds was ordered to cancel the title deed in favour of the first respondent.

Court disposition

Application granted; transfer and registration in favour of the first respondent set aside.

Orders

  • The sale and registration of the property in the name of the first respondent is declared unlawful and set aside.
  • The first applicant is declared the beneficiary of the property.
  • The fourth and fifth respondents are directed to provide a comprehensive report regarding sales of state-subsidised properties and the effect of non-compliance with section 10A(1) of the Housing Act.
  • The Registrar of Deeds is directed to cancel title deed T56991/13 in favour of the first respondent.

02

Material facts

Parties

Stephen Tapala

Applicant

Johanna Tapala

Applicant

Lesiba Jonny Tlebetla

Respondent

The Master of the High Court

Respondent

The Registrar of Deeds

Respondent

The City of Johannesburg Municipality

Respondent

The Director General, Human Settlements

Respondent

03

Procedural history

  1. Posture

    Review Application / Judgment

04

Questions and positions

Legal issues

Party arguments

Applicant
The applicants argue that the sale and subsequent registration of the property in the name of the first respondent was unlawful and invalid, as it did not comply with section 10A(1) of the Housing Act. They contend that the deceased, as the initial owner, was prohibited from selling the property within eight years of transfer without first offering it to the provincial housing department and obtaining its consent. The applicants concede that their own purchase also failed to comply with the statutory requirements but maintain that the first respondent's registration should be set aside and the first applicant declared the beneficiary.
Respondent
The respondents do not dispute that the statutory requirements under section 10A(1) of the Housing Act were not complied with in both sales. The first respondent relies on the fact that the property was registered in his name and contends that the transfer was completed. The respondents do not challenge the applicants' assertion that the deceased lacked authority to sell the property within the restricted period.

05

Court’s reasoning

  1. 01

    Housing Act 107 of 1997

    Section 10A(1) of the Housing Act prohibits the alienation of state-subsidised property within eight years of transfer unless the property is first offered to the relevant provincial housing department and its consent is obtained.

  2. 02

    Relevant case law and statutory interpretation

    A transfer of property in contravention of statutory restrictions is unlawful and may be set aside by the court.

06

Ratio, limits and disposition

Ratio decidendi

The court found that both the sale to the first respondent and the sale to the first applicant were in contravention of section 10A(1) of the Housing Act, as neither transaction involved the requisite offer to the provincial housing department nor its consent. The deceased, as the initial owner, was expressly prohibited from alienating the property within eight years of transfer. The registration of the property in the name of the first respondent was therefore unlawful. The court held that the transfer and registration should be set aside, and directed the relevant authorities to provide a comprehensive report on the sale of state-subsidised properties and the effect of non-compliance with the Housing Act. The Registrar of Deeds was ordered to cancel the title deed in favour of the first respondent.

Obiter and limits

  • The court noted that non-compliance with statutory restrictions on the sale of state-subsidised properties undermines the objectives of the Housing Act.
  • The judgment highlights the importance of strict adherence to statutory conditions in property transfers involving state subsidies.

Court disposition

Application granted; transfer and registration in favour of the first respondent set aside.

  • The sale and registration of the property in the name of the first respondent is declared unlawful and set aside.
  • The first applicant is declared the beneficiary of the property.
  • The fourth and fifth respondents are directed to provide a comprehensive report regarding sales of state-subsidised properties and the effect of non-compliance with section 10A(1) of the Housing Act.
  • The Registrar of Deeds is directed to cancel title deed T56991/13 in favour of the first respondent.

Source and reliance status

North Gauteng High Court, Pretoria

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Judgment text

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Source document

North Gauteng High Court, Pretoria

Judgment

[2019] ZAGPPHC 46

SAFLII Note: Certain personal/private details of parties or witnesses have been redacted from this document in compliance with the law and SAFLII Policy

.

REPUBLIC OF SOUTH AFRICA

IN THE HIGH COURT OF SOUTH AFRICA

GAUTENG DIVISION, PRETORIA

CASE NO: 89400/16

22/2/2019

In the matter between:

STEPHEN

TAPALA

1st

APPLICANT

JOHANNA

TAPALA

2nd

APPLICANT

And

LESIBA

JONNY

TLEBETLA

1st

RESPONDENT

THE

MASTER OF THE HIGH COURT

2nd

RESPONDENT

THE

REGISTRAR OF DEEDS

3rd RESPONDENT

THE

CITY OF JOHANNESBURG MUNICIPALITY

4th RESPONDENT

THE

DIRECTOR GENERAL

5th RESPONDENT

HUMAN

SETTLEMENTS

JUDGMENT

[1] The applicants apply for an order declaring wrongful and/ or illegal the sale and subsequent registration in the names of the first respondent of the property known as erf […..] (the property). They seek an order setting aside the transfer and registration of the property, and declaring the first applicant to be the beneficiary of

the property. They further seek an order directing the fourth and fifth respondents to provide the Court with a comprehensive report

regarding sales of state subsidised properties, the effect of non compliance with section 10A(1) of the Housing Act 107 of 1997 (the Housing Act) and particularly whether Nkhwile Alpheus Moropo (the deceased) who was the initial owner of the property had the authority to sell it to the first respondent. Finally, an order directing the third respondent to cancel the title deed T56991/13 in favour of the

first respondent is also sought.

Background

[2] The property was sold by the deceased, (who had\ obtained title thereto in June 2006), to first applicant and separately to first respondent, without apparent compliance with section 10A(1) of the Housing Act. The deceased's title deeds contained the condition that the property could not be lawfully alienated within eight years of transfer without the consent of the relevant provincial housing department, and unless it had first been offered to the relevant provincial housing department.

[3] The parties do not dispute that this did not take place and that the property was sold to first respondent within the eight year period. The most recent deed of transfer reflects that the property was sold and transferred to the first respondent on 31st July 2013. As a result the deceased clearly did not have the requisite authority to sell the property to the first respondent. It is conceded by the applicants that the sale to first applicant likewise did not comply with section 10A(1) of the Housing Act.

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Authorities

Authorities used by the court

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

Housing Act 107 of 1997

Legislation

Legislation referenced in the available case record.

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