BUY-BACK CLAUSES THROWN A CURVE BALL
Bondev Midrand (Pty) Ltd v Madzhie and Others (63297/15) [2016] ZAGPPHC 1097
(19 December 2016)
Sale agreements in new developments often include clauses entitling the developer to claim re-transfer of the land sold, against payment of the initial purchase price, if the purchaser does not erect a dwelling in a specified time. The clause is intended to ensure completion of the development within a certain timeframe to support and boost buyers’ investment in the development and to avoid the security risks and disturbances associated with continued building works. Generally our courts enforce these clauses, but the Gauteng division has now raised objections to enforcing such a provision which it deems is contrary to public policy, amongst other things.
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The Judgment
Summary of the Judgment
STBB’S STSMA REFERENCE GUIDE
In this, the twentieth set of notes for your STSMA Reference Guide, regulation 4 of the Act is discussed.
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Regulation 4 (Powers of a provisional curator ad litem and curator ad litem)
(N.B. Print in landscape)