Sarrahwitz v Maritz NO and Another

Sarrahwitz v Maritz NO and Another

The Land Act’s protection of vulnerable instalment purchasers, while excluding equally vulnerable purchasers who paid the full purchase price within one year and face homelessness if transfer is not effected, creates an irrational and unjustifiable differentiation that is inconsistent with sections 9 and 26 of the...

Source-derived case information.

Parties
Applicant: VIRGINIA SARRAHWITZ; First Respondent: HERMANUS MARITZ N.O.; Second Respondent: MINISTER OF TRADE AND INDUSTRY
Jurisdiction
South Africa
Procedural Posture
Constitutional Appeal / Appeal From the Eastern Cape High Court, Port Elizabeth
Outcome
Appeal upheld; legislation read and severed to cure constitutional invalidity; specific transfer ordered; no costs order
Legal Topics
Right of Access to Adequate Housing, Equality and Equal Protection and Benefit of the Law, Alienation of Land Act 68 of 1981, Reading in and Severance, Transfer From Insolvent Estate, Homelessness and Vulnerable Purchaser
Constitutional Law Property Law Insolvency Law Right of Access to Adequate Housing Equality and Equal Protection and Benefit of the Law Alienation of Land Act 68 of 1981 Reading in and Severance Transfer From Insolvent Estate +1 more

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Parties

VIRGINIA SARRAHWITZ

Applicant

HERMANUS MARITZ N.O.

First Respondent

MINISTER OF TRADE AND INDUSTRY

Second Respondent

Procedural Posture

Constitutional Appeal / Appeal From the Eastern Cape High Court, Port Elizabeth

  1. 1 Whether the failure of the Alienation of Land Act 68 of 1981 to protect a vulnerable purchaser who paid the full purchase price within one year of the contract is constitutionally invalid
  2. 2 Whether the differentiation between instalment purchasers and full-payment purchasers is rational and justifiable
  3. 3 What remedy is appropriate if the legislation is constitutionally invalid

Ratio Decidendi

The Land Act’s protection of vulnerable instalment purchasers, while excluding equally vulnerable purchasers who paid the full purchase price within one year and face homelessness if transfer is not effected, creates an irrational and unjustifiable differentiation that is inconsistent with sections 9 and 26 of the Constitution. The appropriate remedy is reading in and severance so that vulnerable purchasers in that position are protected and the property must be transferred to the applicant, with the order limited to insolvent estates not yet finalised.

Court Disposition

Appeal upheld; legislation read and severed to cure constitutional invalidity; specific transfer ordered; no costs order

Orders

  • Leave to appeal is granted.
  • The appeal is upheld to the extent set out below.