BONDED PREMISES: DOES THE BONDHOLDER OR OWNER SUE FOR EVICTION?
Pacific Paramount Properties (Pty) Ltd v Burchell t/a Top Wash and Another (8418/2018)  ZAWCHC 124 (19 September 2018)
It happens frequently that when a bank grants a mortgage to a lender, it stipulates in the agreement that the right to sue for rental received from the property and the right to apply for eviction of unlawful occupiers, rights usually exercised by the landowner, are made over to the bank. In the present matter the tenant invoked this arrangement in defence against the landowner’s application for eviction. The landowner was successful and the judgment provides an important call for attention to the interpretation of such provisions in mortgage bond agreements.
STBB’s STSMA REFERENCE GUIDE
In this, the fifty-eighth set of notes for your STSMA Reference Guide, Prescribed Conduct Rule 6 is discussed.
Prescribed Conduct Rule 6
(N.B. Print in landscape)