Sale Agreements and Municipalities

DISCONNECTION OF ELECTRICITY, VALUATION ROLLS, ESSENTIALS IN PROPERTY CONTRACTS AND DAMP ISSUES

Property ownership often evokes strong emotions, especially when issues such as overcharging, wrongful actions, or unfair treatment arise. Addressing these injustices typically involves lodging disputes, thorough investigations, discussions, and ideally, finding common ground to settle differences. When such matters escalate to the courts, it indicates that all efforts to avoid litigation have been exhausted. Courts play a crucial role in providing oversight to address abuses of power or unjust applications of the law.

I recently encountered several cases that offer valuable insights for homeowners. To aid in remembering case law, I often use visual representations, associating pictures with the content. Artwork helps make the law more engaging and memorable.

DISCONNECTION OF ELECTRICITY

In the last few weeks, our courts have sent a clear message to authorities: “disconnection of electricity” is not an option when there is a dispute. Our courts do not accept abuse of power, and the Glofurn v Tshwane Municipality appellate judgment on June 19, 2024, serves as a warning to those in positions of authority. The obligation is on officials to investigate all the facts that gave rise to the dispute. Once the facts have been debated, there is a real possibility of resolving the issues.

View: https://lawlibrary.org.za/akn/za/judgment/zasca/2024/101/eng@2024-06-19

INVALID MUNICIPAL VALUATION ROLLS

On May 16, 2024, the Appellate Division delivered another ruling against Tshwane Municipality in the case of City of Tshwane Metropolitan Municipality v Malvigenix NPC and 17 Others. The City categorized properties in Lombardy Estate as “vacant,” which generated significantly more rates revenue than if they were classified as “residential” properties. Consequently, the ratepayers received invoices from the City reflecting massive increases in their liability for imposed rates, as much as 700% of what they originally paid under Kungwini. Certain ratepayers and the Homeowners Association took the Municipality to court. Once again, the court reminded officials of the process of public participation and their duty to correct invalid and unlawful conduct. The court ordered Tshwane to “reverse the property rates imposed in terms of the invalid valuation rolls in respect of properties owned by the respondents.”

View: https://lawlibrary.org.za/akn/za/judgment/zasca/2024/76/eng@2024-05-16

AGREE ON THE IMPORTANT THINGS IN A PROPERTY SALE AGREEMENT

 In a sale agreement, parties, price, and property descriptions play an essential role and if there are important expectations they must be addressed from the beginning. Problems, arise when you try and fix contracts with addendums and one party refuses to sign the addendum. The result is, a lack of consensus over the essentials in the contract make it null and void as decided in COOPER  N O AND ANOTHER  V CURRO HEIGHTS PROPERTIES.

DAMP IN WALLS

In the GORTZEN V MOOLMAN case, the South Gauteng High Court dealt with the famous VOETSTOOTS clause in February 2024 and found in favour of the purchaser. Ms. Moolman, the purchaser who took the transfer, identified serious damp issues in the walls. The purchaser had to demonstrate, among other things, that the seller was aware of the defect, understood its consequences, and deliberately concealed it to defraud the purchaser. The court found that the damp qualified as a defect affecting the use and value of the property. “Where a seller recklessly tells a half-truth or knows the facts but does not reveal them because he or she has not bothered to consider their significance, this may also amount to fraud.” Although the experts involved in the matter confirmed that the damp might not have been obvious to the untrained eye and without the use of measuring instruments, the seller still concealed the problem during the sale.

View: https://lawlibrary.org.za/akn/za-gp/judgment/zagpjhc/2024/198/eng@2024-02-28

Written by Michelle Horn