Maryna holds the BA, LLB, LLM degrees and is a Director at the Cape Town branch of STBB. She is an admitted Attorney, Notary Public, Conveyancer and Insolvency Practitioner with many years of experience in the fields of property law, conveyancing and the laws relating to corporate compliance (especially in respect of the FICA and POPIA laws). Up until 2018 she was also head of the firm’s national marketing portfolio. She is a seasoned public speaker and presenter, both in person and online. She prepares text for the majority of STBB’s internal and external publications and is editor and co-writer for two pivotal publications in the South African real estate industry – the ABC of Conveyancing (JUTA) and Delport’s South African Property Law and Practice (JUTA).

Property Law Update | Absent provision to the contrary, a deposit must be returned on failure of the agreement

Royal Energy Management Services (Pty) Ltd v Carse N.O (6426/2021) [2021] ZAWCHC 241 (23 November 2021)

A sells his Ferrari to B who happily puts down a 40% deposit. B approaches the bank for a short term loan for the balance but the loan is not forthcoming. B prods A to return the deposit, relying on the general principle in our law that, upon the failure of an agreement, parties must restore each other to the position they were in before their agreement. In other words, return the deposit! This judgment relates to the purchase of a farm for some R17million. With the loan for the balance not approved, the purchaser had to institute proceedings for return of the deposit. This because the seller argued that the agreement’s provision regarding the purchaser’s obligation to provide a guarantee for the balance, was a term of the agreement that the purchaser had breached. Not so simple, said the court.

Summary of the Judgment

The Judgment

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