Van Den Blink Properties CC v Erasmus N.O and Another (2557/2012) [2014] ZAFSHC 182 (26 August 2014)

Van Den Blink Properties CC v Erasmus N.O and Another (2557/2012) [2014] ZAFSHC 182 (26 August 2014)

The court found that the plaintiff was orally mandated to find a lessee for the defendant's property and executed this mandate by introducing SALGA, which ultimately leased the premises. Although the plaintiff's agent did not hold a valid Fidelity Fund certificate at the time of the initial mandate, the certificate...

Source-derived case information.

Citation
[2014] ZAFSHC 182
Parties
Plaintiff: Van Den Blink Properties CC; Defendant: Abel Hendrik Erasmus N.O; Defendant: Abel Hendrik Erasmus JNR N.O
Court
Free State High Court, Bloemfontein
Jurisdiction
South Africa
Judgment Date
26 August 2014
Case Number
2557/2012
Procedural Posture
Civil Trial / Judgment After Trial
Outcome
Plaintiff's claim for commission succeeds.
Judges
Motloung AJ
Legal Topics
Estate Agent Commission, Oral Mandate, Fidelity Fund Certificate, Effective Cause, Lease Agreement, Fictional Fulfilment
Commercial and Corporate Land and Property Estate Agent Commission Oral Mandate Fidelity Fund Certificate Effective Cause Lease Agreement Fictional Fulfilment

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Summary, issues, holding and outcome

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Parties

Van Den Blink Properties CC

Plaintiff

Abel Hendrik Erasmus N.O

Defendant

Abel Hendrik Erasmus JNR N.O

Defendant

Procedural Posture

Civil Trial / Judgment After Trial

Legal Issues

  1. 1 Whether the plaintiff was entitled to claim estate agent's commission for introducing the lessee to the defendant's property.
  2. 2 Whether the plaintiff and its agent held valid Fidelity Fund certificates at the relevant times as required by statute.
  3. 3 Whether the plaintiff was the effective cause of the lease agreement concluded between the defendant and SALGA.

Ratio Decidendi

The court found that the plaintiff was orally mandated to find a lessee for the defendant's property and executed this mandate by introducing SALGA, which ultimately leased the premises. Although the plaintiff's agent did not hold a valid Fidelity Fund certificate at the time of the initial mandate, the certificate was obtained before substantial work was performed and before the lease agreement was concluded. In line with Taljaard v TL Botha Properties, the absence of the certificate at the mandate's inception did not invalidate the contract, but commission could only be enforced once the certificate was held. The evidence established that the plaintiff was the effective cause of the...

Court Disposition

Plaintiff's claim for commission succeeds.

Orders

  • The defendant is ordered to pay R376,999.14 to the plaintiff.
  • The defendant is ordered to pay interest on R376,999.14 at 15.5% per annum from 1 May 2012 until date of payment in full.