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Sect. title case takes a new turn

Property24
Sect. title case takes a new turn


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.

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