Daan’s Snippets – 19th July 2025

Practice News

• A recent case, reported on by Moneyweb, held that banks have no right to cancel a loan agreement, once a consumer goes on debt review. I have not been able to find the case on Saffli.
• The LPC has published its first newsletter. Aside from a note stating that the LPC is not bound by the decisions of its Disciplinary Committees, there is nothing of interest – unless you consider that entity, telling you how good it is for the profession, news. https://lpcnewsletter.co.za/
• Stalingrad divorce tactics: https://www.saflii.org/za/cases/ZAWCHC/2025/279.html
• Lawyers behaving badly:
  • The sordid Mbenenge saga drags on…
• The forensic laboratory in Johannesburg, due for completion in 2019, has encountered what is wonderfully termed ‘setbacks’ and remains incomplete – complete (insult intended) with the customary cost overruns.
• ‘Commission fatigue’ is the latest epithet to come from our government: the fact is that prosecutions, on the back of such investigations are few.
  • The latest on corruption prosecutions is that the docket on the Johannesburg Property Company investigation for corruption, has been handed to the NPA, with the DA alleging that those in the firing line will be protected by politicians.
  • A further scandal, dealing with the NPA, relates to a businessman, Mr Chetty, which again, does not cover it in glory.
• Sakeliga and Neasa filed applications challenging the race and gender targets under the latest EEAA; if this is successful, the relevant department will have egg all over it. On the face of it, achieving the set racial targets is not going to be easy.
• Reviews:
  • The SA Law Reform Commission has published a discussion paper on the criminal justice system and ADR: https://www.justice.gov.za/salrc/dpapers/DP164-Project151-ADR-PartB-AdultDiversion-CriminalMatters.pdfA bill, seeking to amend the Divorce Act (termed The General (Family) Laws Amendment Bill, 2025 has been published.
  • A note, published by Judges Matter on the proposed Judicial Matters Amendment Bill 8 of 2025, may be found at: https://www.judgesmatter.co.za/opinions/judicial-matters-amendment-bill/
• Comment on relief from oppressive conduct in a company under section 163 of the Companies Act, may be found at: https://www.dejure.up.ac.za/images/files/vol58-2025/Chapter_recent_case_law_2_2025.pdf
• The lack of dedicated IT or IP courts, given the intricacy of the topic, was bemoaned by Wakefield on news24. This is certainly the case!
• Being a white-collar lawyer, I do not involve myself in RAF cases – however, I could not help but notice a dispute revolving around the responsibility for the maintenance of children – in this case the parties had been married by customary rights and the children were born of that relationship. To question responsibility of that parent for maintenance, one would think, was beyond argument: https://www.saflii.org/za/cases/ZAGPPHC/2025/692.html at 8.
• The Western Cape High Court has reportedly barred the MK party, who was denigrating an Elgin farm business as racist and a site of colonial exploitation, from any involvement in the unprotected strike; fun!

Hard news

• Concorsus creditorum is a point, in insolvency proceedings, where the collective interests of creditors take precedence over individual creditor actions, in order to ensure a fair and orderly distribution of the debtor’s assets. The following case an article deals with this: https://www.ensafrica.com/news/detail/10461/concursus-creditorum-drawing-a-hard-line-in-t  https://www.saflii.org/za/cases/ZASCA/2025/97.html
• Restraints:
  • A judge cannot read details into an overly-brief restraint in a contract of employment: not available on SAFFLI – ask me for a copy.
  • Post-termination provisions in a restraint are not necessarily unenforceable: https://www.saflii.org/za/cases/ZASCA/2025/98.html
• VAT clawback; this is an interesting case: it holds that an enterprise is entitled to input tax deduction in respect of costs incurred in relation to a right offer. SARS v Woolworths SCA – not available on SAFFLI – ask me for a copy.
• The latest case on summary judgement for vehicle debt, in which the judge refused such judgement is: https://www.saflii.org/za/cases/ZAKZPHC/2025/66.html

Conveyancing

• As corollary to the eDRS training, that was offered this week, was an offer to sign up for an advanced electronic signature by the only authorised provider for the eDRS access. There are three types of signature: https://www.sectigo.com/resource-library/different-types-of-e-signatures
• Whilst on the topic, I attended this training also, in part, and can really not see the point in spending this much energy on something that will only come into being five years hence – if at all, in its current form (suggestions having been made that the answer to our registration issues lies in a completely way of going about business by our block chain!

Property

Trends

There is not much hard news on property trends at present. A few are:

• Moneyweb ran an article on Cape Town properties’ price escalation – this being hardly news. The following Codera graph probably illustrates the trend best:

• Hot on the heels of the above, from the same area, is a Businesstech article stating that the demand for houses in Plett, has soared to the extent that locals can hardly afford to stay there anymore. Both the above is an indication of what difference a well-run municipal structure makes.
• Well-run? Cape Town has been named the best city in the world by The Telegraph.
• Similarly, the demand for secure coastal living, has caused prices on the KZN North Coast to soar.
• On a less parochial note – Businesstech reported a shift from renting to buying on the back of lower interest rates. In the same vein, is another note to the effect that offices are increasingly being turned into flats. It was estimated in the relevant News 24 article that 19.3% of the current office property purchases are intended for conversion to residential or mixed-use developments. In Johannesburg this figure sits at 38.1%.
• Construction of residential buildings in South Africa, has declined significantly, compared to earlier decades. Do look at the graphs: https://codera.co.za/construction-activity-in-sa-2/
• Lastly; our listed property, despite a June dip, is said to remain resilient.

News

• Both of our main Gauteng municipalities are in trouble – again, old hat:
  • Tswane’s Metro manager has been fined half a million Rand (suspended) for contempt of court, having failed for 18 years, to deal with the transfer of properties to the Pretoria Educational Centre.
  • The Public Protector has taken on the Johannesburg administration over its ‘unprincipled debt collection practices’, indicative of the ongoing decade-long billing crisis in that city.
  • Johannesburg faces a housing backlog of more than 300,000 units – simply, there is not nearly an adequate budget for this.
• As may be seen from the above, municipal dysfunction is not news; some 40 municipalities are facing sanctions from Treasury, over mismanagement of their accounts. The defaults range from unpaid pension contributions by the relevant municipalities to the, by now, usual defaults on electricity and water purchases from bulk suppliers.
• Whilst this is not technically of property news, the Landbank is a player in our rural property market – that entity has received R10bn cash injection over the 2019/20 – 2023/24 financial years. Imagine a private company running a bank like this – the board would have been on the rack a long time ago.
• Sapoa has launched an application in the Western Cape High Court to have three tariffs, implemented by Cape Town, reviewed and set aside. It has invited others to join in.
• There have been several reports, of late, saying that grid-tied power systems need to be registered with Eskom/municipal authorities – this article rubbishes that: https://mybroadband.co.za/news/energy/602869-south-africans-with-solar-panels-can-tell-eskom-to-take-a-hike.html?

Legal

•  Voetstoots is a well-worn topic and few of those active within the property sector would not know that this principle will not protect one against the intentional concealment of defects: https://www.tcinc.co.za/OurInsights/ArticleDetail.aspx?Title=No-foot-to-stand-on-Voetstoots-and-the-cost-of-concealing-defects&utm
• A recent note, by STBB on continued marketing clauses, is worth a look: https://stbb.co.za/blog-safeguarding-sellers-why-every-sale-agreement-needs-a-72-hour-clause/
• An article by McRobert deals with the balance between eviction and the right to housing; worth a look: https://www.macrobert.co.za/insights/posts/bridging-the-gap-a-balancing-act-between-the-right-to-housing-and-a-creditors-right-to-enforce
• the following article is interesting as it details remedies against municipalities against sinkhole damages (caused by municipal neglect), think maintenance of stormwater drains and so on: https://hbgschindlers.com/holding-municipalities-accountable-for-sinkhole-damage-legal-remedies-for-homeowners/

Comment

A sidenote, not much dealt with in the press, is that our financial sector will migrate from the JIBAR benchmark to the new South African Rand Overnight Index Average (ZARONIA), which, it is said, is more in alignment with international best practice.

I am in the throes of reading a book on the creation of the central European states; think Poland, Hungary, Czechoslovakia, Croatia and so on. The boundaries of these states were created by populations who thought themselves nations, meaning thereby of similar historical and linguistic background. This brought to mind a question I was asked, by a local, in Croatia, when explaining the intricacies of our politics, some 15 years ago: why don’t we (meaning Afrikaners and whites?) carve out a state for ourselves – like they – the Croatians – did? I, at the time, could not think this remotely possible and said so; despite ‘afstigting’ being a well-known Afrikaner (the English stick together!) tradition… The fact is that, by doing so in South Africa, ‘afstigting’ would remove much of the topical divisive political issues held up for public comment/ridicule. And, lo – the issue is firmly on the table (again): https://dailyfriend.co.za/2025/07/18/the-western-capes-right-to-self-determination-pretoria-does-not-hold-the-aces/

Up the revolution!

No, I am not endorsing ‘afstigting’, I am merely pointing out that the ‘afstigting’ idea is not particular to South Africa. There is much to be said for the contrary, see for instance: https://www.youtube.com/watch?v=TI1SqDDcXaU

Lighten up (on estate agents)

I’m getting married to a luxury realtor tomorrow. He’s so dreamy. Check out the diamond engagement ring he sold me.

What does an appraiser’s wife say if she can’t sleep? “Honey, tell me about your day at work.”

Q: How many estate agents does it take to change a lightbulb?

A: None! “The lightbulb is in excellent working order and comprised of a beautiful retro teardrop illuminator, offering original glass and metal features and located very centrally in the middle of the room. Local amenities abound and the property is serviced by a newly refurbished power cord connecting it to the ceiling. Nearby is a tasteful power switch to enable the purchaser to switch it on and off. Leasehold with share of power supply with lovingly improved wattage by the current owners. Would suit a professional couple or family looking for more light.”