BEWARE POTENTIAL HISTORICAL DEBT LIABILITY IN AN EXECUTION SALE
Langlaagte Truck and Car CC v Ethekwini Municipality (9219/2023P) [2024] ZAKZPHC 94 (31 October 2024)
In past years, there has been much controversy regarding liability for historical debt on a property to be transferred to a new owner. Our courts have clarified that, where rates for the 24 months preceding the date of application for the clearance certificate have been paid, the municipality must issue a clearance certificate. Regarding the older, historical debts, the municipality is empowered to enforce its claim against the person who was owner of the property at the time, not the new title holder. The court was asked to determine whether the Conditions of Sale in an execution sale make the purchaser liable for the historical debt.
The judgment can be viewed here
Summary of the Judgment
PENNY-WISE, POUND-FOOLISH: BUILDER ‘SAVING’ ON NHBRC ACCREDITATION FEES BATTLES TO CLAIM PAYMENT
De Kock v Olivier (21144/2022) [2024] ZAWCHC 351 (6 November 2024)
Builders embarking on projects to build homes are obliged to register with the National Home Builders Registration Council (‘the NHBRC’), and pay certain fees in respect of building projects to be undertaken. This is in order to establish a system of protection for consumers, being those for whom new homes are erected. The failure to adhere to these prescripts renders a claim for remuneration precarious. The judgment below relates to the initial skirmishes between such an unregistered builder, who sought to curb expenses by not registering with the NHBRC, and his client – demonstrating the likely insurmountable hurdle in the claim for payment.
