BUYING NOW WITH OBLIGATION TO BUILD SOON – CONSEQUENCES OF NON-COMPLIANCE

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Bondev Midrand (Pty) Limited v Ndlangamandla NO and Others (38331/2015) [2016] ZAGPPHC 939
(11 November 2016)

Often in new developments, developers include a condition in the sale agreement and the property’s title deed that the purchaser has to erect a building within a certain period. In this instance, the developer reserved the right to claim retransfer of the property if a home was not erected within the stipulated period. Is this enforceable?

Summary of the Judgment

HISTORIC DEBT LIABILITY: RELIEF

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Jordaan v City of Tshwane Municipality (74195/2013) [2016] ZAGPPHC
(7 November 2016)

The Municipal Systems Act provides that outstanding debt remains a charge against the land, even after it changes hands. This could have the effect of making a new owner pay for debts the previous owner incurred. The constitutionality of this provision was finally challenged in this matter and the outcome provides relief to property purchasers.

Summary of the Judgment