Wakefields Real Estate (Pty) Ltd v Baboolal and Another (9167/07) [2013] ZAKZDHC 71 (22 February 2013)

Wakefields Real Estate (Pty) Ltd v Baboolal and Another (9167/07) [2013] ZAKZDHC 71 (22 February 2013)

The court found that the plaintiff, through its agent Ms Real, was the effective cause of the sale of the defendants' property to the Rangappas. The Rangappas were introduced to the property during the plaintiff's sole and exclusive mandate, and their subsequent purchase was a direct result of this introduction. The fact that the sale was concluded at a lower price and after the mandate period did not negate the plaintiff's entitlement to commission, as the mandate expressly allowed for acceptance of a lesser amount and established that commission was payable if the plaintiff was the effective cause of the sale. The intervention of Tuscany Real Estates was not weighty enough to break the...

Citation
[2013] ZAKZDHC 71
Parties
Plaintiff: Wakefields Real Estate (Pty) Ltd; Defendant: Timal Baboolal; Defendant: Bhanumathi Baboolal
Court
Kwazulu-Natal High Court, Durban
Jurisdiction
South Africa
Judgment Date
22 February 2013
Case Number
9167/07
Procedural Posture
Civil Trial / First Instance
Outcome
Judgment in favour of the plaintiff.
Judges
Mbatha
Legal Topics
Estate Agent Commission, Effective Cause of Sale, Sole and Exclusive Mandate, Introduction of Purchaser, Contractual Performance
Commercial and Corporate Land and Property Estate Agent Commission Effective Cause of Sale Sole and Exclusive Mandate Introduction of Purchaser Contractual Performance

Case Brief

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Parties

Wakefields Real Estate (Pty) Ltd

Plaintiff

Timal Baboolal

Defendant

Bhanumathi Baboolal

Defendant

Procedural Posture

Civil Trial / First Instance

Legal Issues

  1. 1 Whether the plaintiff was the effective cause of the sale of the property and thus entitled to commission.
  2. 2 Whether the purchaser introduced by the plaintiff was legally and financially able to purchase the property.
  3. 3 Whether the intervention of another agent (Tuscany) negated the plaintiff's entitlement to commission.

Ratio Decidendi

The court found that the plaintiff, through its agent Ms Real, was the effective cause of the sale of the defendants' property to the Rangappas. The Rangappas were introduced to the property during the plaintiff's sole and exclusive mandate, and their subsequent purchase was a direct result of this introduction. The fact that the sale was concluded at a lower price and after the mandate period did not negate the plaintiff's entitlement to commission, as the mandate expressly allowed for acceptance of a lesser amount and established that commission was payable if the plaintiff was the effective cause of the sale. The intervention of Tuscany Real Estates was not weighty enough to break the...

Court Disposition

Judgment in favour of the plaintiff.

Orders

  • The First and Second Defendants are ordered to pay the Plaintiff the sum of R384,750.00, together with interest at the rate of 15.5% per annum from the date of transfer, being 15 January 2007, to date of payment, jointly and severally, the one paying the other to be absolved.
  • Costs of suit on a party and party scale.