Tshatshu and Another v Standard Bank of SA Limited and Others (1787/2014)
Tshatshu and Another v Standard Bank of SA Limited and Others (1787/2014) [2016] ZAECGHC 43 (6 May 2016)
The court found that the applicants were fraudulently induced to sign documents effecting the sale and transfer of their property to Dream World, without true consent or understanding. The scheme was designed to exploit financially vulnerable homeowners, and the applicants' intention was never to alienate ownership. The agreements and associated documents are null and void due to fraud. The bank's rights under the mortgage bond cannot stand where the underlying transfer is invalid. Estoppel does not operate against the applicants, as their conduct did not amount to a negligent misrepresentati…
Source excerpt
- Reverse Mortgage Scheme
- Fraudulent Transfer
- Actio Rei Vindicatio
- Estoppel
- Prescription Act
- Mortgage Bond Invalidity