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South Africa Judgment

South Gauteng High Court, Johannesburg

Walljee and Another v Botto and Another (A5044/08) [2009] ZAGPJHC 36 (7 August 2009)

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01

Holding and result

The court held that the agreement of sale was concluded by the first appellant while married in community of property, without the written consent of the second appellant, as required by section 15(2)(g) of the Matrimonial Property Act. However, the subsequent written ratification by the second appellant, provided within a reasonable time after the agreement, satisfied the requirements of section 15(4) and (5) of the Act. The agreement therefore became valid and enforceable upon ratification. The respondents were not entitled to resile from the agreement, and the appellants were entitled to the relief sought, namely an interdict preventing alienation or disposal of the property and transfer of the property into their names.

Court disposition

Appeal upheld; application granted.

Orders

  • The respondents are interdicted from alienating or disposing of the property described as Stand 605 Bez Valley, 225 and 225a Eighth Avenue, Bez Valley.
  • The respondents are ordered to transfer the property into the names of the appellants.
  • The respondents are ordered to pay the costs of the application and appeal.

02

Material facts

Parties

Raymond Walljee

Appellant

Charmaine Walljee

Appellant

Kenneth John Botto

Respondent

Charmanne Isabel Botto

Respondent

Amounts and remedies

  • Purchase Price of Property: ZAR 358,500

03

Procedural history

  1. Posture

    Civil Appeal / Appeal From Dismissal of Application for Interdict and Transfer

04

Questions and positions

Legal issues

Party arguments

Applicant
The appellants argued that although the agreement was concluded by the first appellant without the written consent of the second appellant, the subsequent ratification by the second appellant in writing satisfies the requirements of section 15(4) and (5) of the Matrimonial Property Act. They contended that the agreement is valid and enforceable, and sought an interdict preventing the respondents from alienating or disposing of the property, as well as transfer of the property into their names.
Respondent
The respondents argued that the agreement was invalid ab initio due to the absence of the second appellant's written consent at the time of conclusion, as required by section 15(2)(g) of the Matrimonial Property Act. They maintained that subsequent ratification does not cure the defect and that they are entitled to resile from the agreement and refuse transfer of the property.

05

Court’s reasoning

  1. 01

    Section 15(2)(g) of the Matrimonial Property Act 88 of 1984

    A spouse married in community of property may not, without the written consent of the other spouse, enter into a contract as purchaser for the sale of immovable property to which the Alienation of Land Act applies.

  2. 02

    Section 15(4) and (5) of the Matrimonial Property Act 88 of 1984

    A contract entered into in contravention of section 15(2) is void unless ratified in writing by the non-consenting spouse within a reasonable time.

  3. 03

    Alienation of Land Act 68 of 1981

    A contract for the sale of land must comply with the formalities prescribed by the Alienation of Land Act.

06

Ratio, limits and disposition

Ratio decidendi

The court held that the agreement of sale was concluded by the first appellant while married in community of property, without the written consent of the second appellant, as required by section 15(2)(g) of the Matrimonial Property Act. However, the subsequent written ratification by the second appellant, provided within a reasonable time after the agreement, satisfied the requirements of section 15(4) and (5) of the Act. The agreement therefore became valid and enforceable upon ratification. The respondents were not entitled to resile from the agreement, and the appellants were entitled to the relief sought, namely an interdict preventing alienation or disposal of the property and transfer of the property into their names.

Obiter and limits

  • The court noted that the purpose of section 15 is to protect the interests of both spouses in a marriage in community of property, but it does not intend to render all transactions void where subsequent consent is given.
  • The court observed that the formalities of the Alienation of Land Act must be strictly complied with, but the Matrimonial Property Act provides a mechanism for ratification to cure initial defects in consent.

Court disposition

Appeal upheld; application granted.

  • The respondents are interdicted from alienating or disposing of the property described as Stand 605 Bez Valley, 225 and 225a Eighth Avenue, Bez Valley.
  • The respondents are ordered to transfer the property into the names of the appellants.
  • The respondents are ordered to pay the costs of the application and appeal.

Source and reliance status

South Gauteng High Court, Johannesburg

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Judgment text

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Source document

South Gauteng High Court, Johannesburg

Judgment

[2009] ZAGPJHC 36

IN

THE SOUTH GAUTENG HIGH COURT

(JOHANNESBURG)

CASE NUMBER A5044/08

In the matter between

RAYMOND

WALLJEE FIRST APPELLANT

CHARMAINE

WALLJEE SECOND APPELLANT

and

KENNETH

JOHN BOTTO FIRST RESPONDENT

CHARMANNE

ISABEL BOTTO SECOND RESPONDNET

______________

J U D G M E N T

VAN OOSTEN J:

[1] At issue in this appeal is the validity of an agreement of sale of an immovable property (the agreement). The first appellant, who is married to the second appellant, purchased the property concerned from the respondents in terms of a written agreement of sale. Six months after its conclusion the respondents relying on the provisions of s 15(2)(g) of the Matrimonial Property Act 88 of 1984 (the Act) sought to resile from the agreement for want of the second appellant’s consent to the transaction. The appellants in the court a quo launched an application in which they in essence sought to interdict the respondents from alienating or disposing of the property and for transfer thereof in their name. The matter was argued before Mlonzi AJ who dismissed the application with costs. The appeal now serves before this Court with leave of the learned judge.

[2] Although a number of issues were raised and dealt with by the judge a quo, it is in the view I take of the matter only necessary to determine one thereof which is the question whether the agreement is one contemplated by s 15 of the Act. The undisputed background facts relevant to this issue are briefly these. The appellants were married to each other in community of property on 7 September 2002. Subsequent to the conclusion of the marriage the appellants applied to this Court for an order to change the proprietary regime of their marriage in terms of s 21 of the Act. The application was successful and pursuant thereto a notarial postnuptial contract was duly registered on 22 August 2005. Prior to that on 1 April 2005 and while the appellants were thus still married in community of property the agreement was concluded. It is common cause that the agreement was concluded by the first appellant as purchaser without the written consent of the second appellant as contemplated in s 15 of the Act. In terms of the agreement the first appellant purchased from the respondents the immovable property more fully described as Stand 605 Bez Valley, 225 and 225a Eighth Avenue, Bez Valley, for “the purchase price of R358 500.00, payable in cash upon registration of transfer of the property into the name of the purchaser which amount shall be secured by a suitable guarantee from a registered financial institution within 15 days from date of grant of loan” within 10 days from the date of signature of the agreement. Merely to complete the history of the matter, I may mention that on 26 October 2005 the second appellant in writing ratified the agreement “in so far as is necessary in terms of s 15(4) and (5) of the Matrimonial Property Act”.

[3] Section 15(1)(g) of the Act prohibits a spouse in a marriage in community of property without the written consent of the other spouse, to “as a purchaser enter into a contract as defined in the Alienation of Land Act, 1981 (Act No 68 of 1981) (the Alienation of Land Act), and to which the provisions of that Act apply”. “Contract” according to s 1 of the Alienation of Land Act

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Authorities

Authorities used by the court

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

Matrimonial Property Act 88 of 1984

Legislation

Legislation referenced in the available case record.

Alienation of Land Act 68 of 1981

Legislation

Legislation referenced in the available case record.

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