| Gowar Investments (Pty) Ltd v Section 3 Dolphin Coast Medical Centre CC and Another |
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| Supreme Court of Appeal -474/05 |
Hearing date: 07 November 2006 |
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Judgment date: 30 November 2006 |
Sale of land – non-compliance with ss 2(2A) of Alienation of Land Act 68 of 1981 – agreement voidable at instance of purchaser Sayer v Khan 2002 (5) 688 (C) overruled.
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Media Summary of Judgment |
Section 2(2A) of the Alienation of Land Act allows buyers of residential property five days after signing an agreement to get out of it without penalty if he/she has second thoughts, provided the purchase price is less than R250 000. The Act stipulates that the agreement of sale must reflect this right. The question of whether a contract which does not reflect this right is null and void or only voidable at the instance of the purchaser was resolved by the SCA. A decision of the Cape High Court which held such contracts are void was overruled and the Durban High Court’s decision that it was voidable at the instance of the buyer was upheld. The seller of doctors’ rooms in the Natal Coast who two years after the conclusion of the sale agreement was concluded attempted to get out of the agreement on the grounds that it was void because it did not contain reference to the five day ‘cooling-off’ period was unsuccessful in its appeal. |
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