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)
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