A BUYER FOR YOUR EX PARTNER’S HALF SHARE: CAN BE TRICKY
Bosman v Hoffmann (48330/2021) [2022] ZAGPPHC 588 (12 August 2022)
Apart from the emotional strain that accompanies the break-up of a cohabiting couple, it is another hurdle to untangle the financial implications, especially where a property was owned jointly and mortgaged. The judgment below is a case in point. The ex-partners had entered into an agreement that the one’s half share in the property would be bought out by Mr S. However, the ex-partners had initially bought the property with bond financing and thus were co-debtors for the entire outstanding bond debt. S qualified for a bond for the value of the half share, but not the full amount of the debt as a co-debtor. The Court thus granted the order for termination of the joint ownership, meaning a sale of the property and division of the proceeds.
The Judgment
Summary of the Judgment
HISTORIC SHARE BLOCK SCHEMES: IF IT QUACKS LIKE A DUCK …
The Trustees for the Time Being of the Hunter Family Trust v Duin-en-See (Pty) Ltd and Others (5035/2017) [2022] ZAWCHC 141 (26 July 2022)
This judgment is of interest as it illustrates the provisions in the Share Blocks Control Act that allow for recognition of a share block scheme that was in place before the Act became operational. With recognition as such a scheme, comes the protection that is offered to shareholders by the Act. The judgment further confirms that shareholders who transfer their shares in a company owning immovable property and operating a share block scheme, are transferring shareholder rights and not an interest in the immovable property of the company.
