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Sect. title case takes a new turn

26 Jun 2007
The legal issue about the policy of certain developers to sell sectional titles before a development has been proclaimed, has been brought back to into the spotlight once again.

Mrs Ann Teitge of Randburg was one of the first victims of this system. She bought a unit which was marketed by the development giant New Market Developments (NMD). She signed a contract and paid her deposit. To her dismay she was later informed that her contract was cancelled because the entire sectional title development hadn't been proclaimed when she signed the contract. She was then offered the same unit, but at a much higher price.

Teitge took NMD to court, and achieved a sound victory. The court found that with regard to the sale of sectional title units, it is not the land which is sold, but the building (the brick and mortar) itself.

NMD received permission to appeal the case, but the formal documents were never issued. Two weeks ago, Sake24 was informed that NMD had finally decided to grant Teitge her unit in terms of the old contract. On Friday, however, the entire matter turned on its head when NMD sent documents to Teitge's attorney, Mr Neels Engelbrecht of Randburg, in which Teitge was informed that NMD had decided to continue its appeal.

The time for submitting those documents has passed, and NMD will have to get permission from the court of appeal to continue its appeal. According to Engelbrecht, Teitge will certainly oppose the application for permission.

Article courtesy of Sake24

Readers' Comments
My wish is certainly that Mrs. Teitge should win the case but what concerns me is that even if the losing party has to pay her costs, it would only be roughly 60% of what she would have spent to defend her case or am I missing something? - Constant Laubscher

With reference to Constant Laubscher's concern of the recovery of legal fees in this case, I would like to clarify the following:

I bought the unit as my business premises in December 2004. The value of the unit has since escalated with R2.5 million. I have paid a deposit of R172 000 plus R500 000 to the developer (NMD) on the purchase price of the building. I have also paid in access of R500 000 occupational rent for the period.

I have faith in our legal system and hope for a positive outcome. - Ann Teitge

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