A recent case Loggerenberg v Maree is going to be particularly interesting to watch; more so because it involves a serial insolvent and his largely successful attempts to avoid the consequences of his insolvency.
L formed a trust to hold his farm whilst insolvent to protect his family’s interests. He farmed via two close corporations and, when these also ran into difficulties, the farm was sold to M who ” at execution, purportedly acting for the benefit of a third party on the back of an oral agreement that he would buy and resell to a new trust to be created to protect the interests of L and his family. He resold for R5.2m to another which L wishes to avoid. The issues that arise are whether:
- a contract for the benefit of a third/stipulatio alteri is a transaction that is prohibited by the Alienation of Land Act (this act says that the sale of land must be in writing); and,
- an agreement to agree is enforceable.
I confess to having some sympathy with the lawyers involved. Attempting to dress a re-sale as something else when your client is in a corner, was possibly the only option available. Furthermore, the machinations engaged in must surely discomfort counsel, or maybe not? The matter was referred to the High Court for trial.
Certainly worth a read: Reference
Loosening the purse strings: in March, 60% of bond applications were granted; up from 47% last year. Coupled with a drop in the prime rate this must serve as an indication that the property market will pick up.
A massive R3bn mixed-use development in Rosslyn, Pretoria, kicked off last week with a planned R50bn Tshwane Auto City to be developed on some 7100ha of land.
Cape Town yoy house price growth is down…to only 10% per year…
Betterbond reports a 5.3% yoy average house price growth for April, compared to the 1st quarter averaging around 2.7%
