Thwala and Another v First National Bank Limited and Others (2015/19201) [2016] ZAGPJHC 13 (5 February 2016)

Thwala and Another v First National Bank Limited and Others (2015/19201) [2016] ZAGPJHC 13 (5 February 2016)

The court found that the applicants had satisfied the judgment debt prior to the sale in execution, and thus there was no lawful cause for the sale. The sale in execution was declared null and void, and all subsequent transfers based on that sale were equally invalid. The principle that a bona fide purchaser for value cannot retain title where the sale is a nullity applies, and the applicants never lost ownership of the property. The Registrar of Deeds is ordered to cancel the title deeds registered in the names of the second, third, and fourth respondents and to restore registration to the applicants. The interests of the applicants and their family in the property, being their only home...

Citation
[2016] ZAGPJHC 13
Parties
Applicant: Delphin Louisa Thwala; Applicant: Godfrey Thwala; Respondent: First National Bank Limited; Respondent: Lucas Molobele; Respondent: Rachel Pinkie Bodibe; Respondent: Standard Bank of South Africa Limited; Respondent: Registrar of Deeds, Johannesburg
Court
South Gauteng High Court, Johannesburg
Jurisdiction
South Africa
Judgment Date
5 February 2016
Case Number
2015/19201
Procedural Posture
Review Application / Judgment
Outcome
Application granted. The Registrar of Deeds is ordered to cancel the title deeds registered in the names of the second, third, and fourth respondents and to register the property in the names of the applicants. Each party to bear their own costs.
Judges
T V Norman
Legal Topics
Deeds Registries Act, Sale in Execution, Rei Vindicatio, Transfer of Property, Bona Fide Purchaser, Cancellation of Title Deed
Land and Property Civil Procedure Deeds Registries Act Sale in Execution Rei Vindicatio Transfer of Property Bona Fide Purchaser Cancellation of Title Deed

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Parties

Delphin Louisa Thwala

Applicant

Godfrey Thwala

Applicant

First National Bank Limited

Respondent

Lucas Molobele

Respondent

Rachel Pinkie Bodibe

Respondent

Standard Bank of South Africa Limited

Respondent

Registrar of Deeds, Johannesburg

Respondent

Procedural Posture

Review Application / Judgment

Legal Issues

  1. 1 Whether the applicants are entitled to cancellation of title deeds registered in the names of the second, third, and fourth respondents following a sale in execution declared null and void.
  2. 2 Whether the applicants' ownership of the property was lost pursuant to the sale in execution and subsequent transfers.
  3. 3 Whether bona fide purchasers for value can retain title where the sale in execution is declared a nullity and the judgment debt was satisfied prior to sale.

Ratio Decidendi

The court found that the applicants had satisfied the judgment debt prior to the sale in execution, and thus there was no lawful cause for the sale. The sale in execution was declared null and void, and all subsequent transfers based on that sale were equally invalid. The principle that a bona fide purchaser for value cannot retain title where the sale is a nullity applies, and the applicants never lost ownership of the property. The Registrar of Deeds is ordered to cancel the title deeds registered in the names of the second, third, and fourth respondents and to restore registration to the applicants. The interests of the applicants and their family in the property, being their only home...

Court Disposition

Application granted. The Registrar of Deeds is ordered to cancel the title deeds registered in the names of the second, third, and fourth respondents and to register the property in the names of the applicants. Each party to bear their own costs.

Orders

  • The Registrar of Deeds (Johannesburg) is ordered to cancel title deed number T43716/2010 in respect of Erf [........], Registration Division IQ, Province of Gauteng, and to cancel all rights accorded to the second respondent by virtue of the deed.
  • The Registrar of Deeds (Johannesburg) is ordered to cancel title deed number B32693/2010 in respect of Erf [........], Registration Division IQ, Province of Gauteng, and to cancel all rights accorded to the fourth respondent by virtue of the deed.