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South Africa Case Law

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Land And Property [2005] ZASCA 21

BOE Bank Ltd v City of Tshwane Metropolitan Municipality (240/2003)

BOE Bank Ltd v City of Tshwane Metropolitan Municipality (240/2003) [2005] ZASCA 21; 2005 (4) SA 336 (SCA) (29 March 2005)

Court
Supreme Court of Appeal
Case number
240/2003
Judges
Scott, Mthiyane, Brand, Conradie, Ponnan

Section 118(3) of the Local Government: Municipal Systems Act 32 of 2000 creates a statutory charge over property for all municipal debts, regardless of when they became due, and this charge enjoys preference over any mortgage bond registered against the property, including those registered prior to the commencement of the Act. The time limit in section 118(1) applies only to the embargo on transfer and does not limit the scope of the statutory charge in section 118(3). Applying section 118(3) to existing mortgage bonds does not amount to retrospective effect, as the extended security operate…

Source excerpt

  • Municipal Charges
  • Statutory Hypothec
  • Interpretation Of Statutes
  • Retrospectivity
  • Mortgage Priority
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Land And Property [1996] ZASCA 76

Land en Landboubank van Suid Afrika v Absa Bank Bpk. en Andere (519/94)

Land en Landboubank van Suid Afrika v Absa Bank Bpk. en Andere (519/94) [1996] ZASCA 76; 1996 (4) SA 543 (SCA); [1996] 3 All SA 493 (A); (11 June 1996)

Court
Supreme Court of Appeal
Case number
519/94
Judges
J J F Hefer, Howie, Harms, Marais, Schutz

The Supreme Court of Appeal held that the majority judgment in Cogmanskloof is clearly incorrect regarding the survival of mortgage rights after a statutory sale by the Land Bank. Upon transfer of the property to the purchaser under section 55(2)(c), subordinate mortgage rights are extinguished, and mortgagees are left with a claim to the proceeds according to the statutory order of preference in section 56. The statutory process is designed to mirror judicial execution, ensuring that mortgagees are not in a worse position than they would be under a court-ordered sale. The order of the court…

Source excerpt

  • Mortgage Priority
  • Statutory Sale Of Property
  • Secured Creditor Rights
  • Landbank Act Interpretation
  • Judicial Vs Statutory Execution
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About this LexChat collection

South Africa decisions are organised by court, judge, legal area and indexed issue so a practitioner can move from a proposition to a citable authority with the surrounding context intact.

Source links and collection timestamps are retained alongside the indexed records.