WHEN THE UNIT YOU BOUGHT IS DEPICTED ELSEWHERE ON THE SURVEYOR GENERAL MAP Bonthuys and Another v Potgieter and Others (16760/2014) [2014] ZAGPPHC 170 (3 April 2014) This matter illustrates an unfortunate conundrum that arose after the Surveyor General’s office, on its plans, erroneously changed numbering as it appeared on the plans of the developer of a sectional title scheme. This resulted in the rights of the purchaser of unit X (as depicted on the surveyor’s diagram) clashing with those of the purchaser of apparently the same unit (according to the numbering on the developer’s plans). The court approached the dispute practically to afford relief. The issue highlights the underlying relationship between developers’ plans and those of the Surveyor General’s office and the need to always verify the property recordal in the latter’s office. The Judgment can be viewed here. FACTS In October 2012, Mr and Mrs Bonthuys bought unit 1 in the sectional title scheme Abacus. After registration of transfer, they discovered that the unit was occupied by two tenants in terms of an agreement with one Ms Hall. Mr and Mrs Bonthuys accordingly sought the eviction of the tenants. Hall opposed the application. She stated that, in 2006, she purchased unit 5 in the Abacus sectional title scheme. The deed of sale described the unit as unit 5 and in addition its location was identified on the developer’s plan as unit 5. There was consensus between the developer and herself both with regard to the description of the unit, as well as its physical location. It became apparent some time later (and before the sale and transfer to Mr and Mrs Bonthuys) that when the Surveyor General (‘the SG’) prepared the sectional title plan, the numbering of the various units was unilaterally and erroneously changed with the result that the physical location of the various units as depicted on the SG‘s plan differed from those on the developer’s plan. It was not disputed that the developer’s plan served as the basis for the identification of the unit sold to Hall and to the majority of the purchasers of units who purchased at the time. 1 // 4 The effect of the change to the SG’s plan was that while Hall bought and obtained transfer of the unit described as unit 5 on the developer’s plan and the sale agreement, she was in occupation of and exercised the rights of ownership in respect of unit 1, as described on the SG plan. In turn, the unit in the complex which was numbered ‘1’ on its door and on the developer’s plan, was in fact the unit depicted as unit 6 on the SG plan. The error duplicated itself with regard to all the other owners in the scheme. When the problem was discovered a while later, the developer and the attorney involved undertook to remedy the situation by way of a correcting deed. At the time of the sale to Mr and Mrs Bonthuys this was not yet done and they were not advised hereof. Hall accordingly conceded that Mr and Mrs Bonthuys are the registered owners of the unit described as unit 1 Abacus, but that that unit was not the unit she owned, even though the SG plan depicts it as such. Her stance was that her rights of ownership in the unit she purchased by way of description and location cannot change, be diluted or rendered irrelevant simply on account of an error made on the sectional title plan by the SG. In addition to her opposition on the merits, Hall also raised various points in limine. Of relevance was the contention that the other owners of units in the scheme had to be joined as the relief sought by Mr and Mrs Bonthuys would have a direct and substantial impact on their rights and interests. Mr and Mrs Bonthuys on the other hand contended that the history of what transpired at Abacus was not relevant to their ownership and that they are the registered owners of unit 1 as described on the SG diagram and accordingly that they were entitled to the relief sought. HELD: The issue of non-joinder 2 // 4 It is trite that a third party who has a direct and substantial interest in any order the court may make in proceedings, or if an order cannot be carried out without prejudicing that party, is a necessary party and should be joined in the proceedings. The unique circumstances that formed the factual basis of the dispute between the parties in the present matter, was not confined to the parties themselves, even though in a narrow sense the relief sought was essentially relief against Hall and not any other owners of units in Abacus. The relief sought related to an error in the SG plan and has relevance for all of the owners of units in Abacus, in that their rights as owners will be directly impacted upon by any order the court would make. The failure to join therefore rendered the point in limine valid and the relief sought impermissible. The action accordingly failed on this ground. Merits If the above conclusion was incorrect, the matter also failed on the merits. The competing rights of Mr and Mrs Bonthuys and Hall to the property The history and the manner of acquisition of the property was relevant here. Mr and Mrs Bonthuys alleged that they bought unit 1 after it was pointed out to them by an agent. They never inspected the inside of the property but inspected other units which would have been similar in size and layout to the unit they intended to purchase. (It was not clear however which unit was pointed out to them.) The unit in the Abacus complex which is numbered ‘1’ on its door is in fact the unit depicted as unit 6 on the SG’s plan. As such, whichever unit was pointed out to Mr and Mrs Bonthuys would not have been Hall’s unit, i.e. the unit numbered 5. If Mr and Mrs Bonthuys were pointed out the location of unit 1 (as indicated in the SG plan), that would correspond with unit 6 of the physical building. On the other hand, the deed of sale in terms of which Mr and Mrs Bonthuys signed, had the sectional title plan as an attachment depicting unit 1 as the property occupied by Hill. It was significant that unit 1 (as depicted on the SG diagram, physically numbered ‘6’) has been transferred on 3 previous occasions without the sectional title plan being rectified. The transfer never interfered with Hall’s ownership rights of ownership or occupation of the unit numbered 5. This signified that, even though the unit described as unit 1 was being transferred on those various occasions, the physical location of that unit was not unit 1 as depicted on the SG’s plan but some other unit. It simply could not have been unit 1 as located on the SG’s plan because if it was, then it is highly improbable that any of those purchasers would not have sought at least some form of physical control over the unit which would then have brought them into conflict with Hall who was exercising rights of ownership during this period. The fact that no such conflict or contestation arose must strongly suggest that while unit 1 may have changed hands as unit 1 described in the title deed and the SG’s plans, in reality what physically changed hands must have been another unit, likely unit 6 (which was unit 1 on the developer’s plan). The consequences of Mr and Mrs Bonthuys being the registered owners of unit 1 with its location as depicted on the sectional title plan does not mean that Hill was not vested with real ownership of the unit. This was because: 2 // 3 o 3 // 4 Hall and the developer both confirmed that what was sold by the developer and purchased by the Hill was unit 5 in Abacus which was described by both description and location in the deed of sale. 3 // 4 4 o In this regard it warrants mention that the deed of transfer and accompanying documents merely give effect to the deed of sale which continues to constitute the primary and only source with regard to the terms and conditions of the agreement. In addition we have, in South Africa, a negative system of registration. o The agreement of sale to Hall did include clauses providing that the sectional title plan has not yet been approved and that the exact boundaries and property description on the sectional plan may differ from the description in the agreement and that the purchaser will not refuse transfer as a result. The seller warranted that the boundaries would be substantially in accordance with the plan annexed to the sale agreement. These clauses provided for a changed description and possibly changed boundaries, but in the context of the sale and the seller’s warranty, they did not lay a basis for the submission that Hall was obliged to accept transfer of a property different in substance from the one she purchased based on a description and location of the property purchased. Accordingly, and in the absence of public policy considerations, what the parties have agreed on must be given effect to. As such, notwithstanding the error in the SG’s sectional title plan, Hall was and continued to be the registered owner of unit 5 Abacus, albeit that such unit was depicted as unit 1 on the SG plan. In light of the history of the development and what was purchased, acquired and regarded as their property by the respective owners, it could not be suggested that Hill was the owner of unit 5 as it is located on the SG’s plan. The contention would undermine the rights and interests of all the owners that bought in the 2006-2007 period as well as run contrary to the principles of contract. In the circumstances, the relief sought by Mr and Mrs Bonthuys cannot be granted. It would ignore and undermine the principles of ownership which have, over time, developed in our law. Notwithstanding the error in location on the Surveyor General’s plan, the uncontroverted evidence in these proceedings compellingly demonstrates that Hall was the owner of unit 5 Abacus which unit is located in the area erroneously depicted as unit 1 (as opposed to unit 5) on the sectional title plan. The application was therefore also dismissed on its merits. CONTACT US 4 // 4 3 7// //3 7 CAPE TOWN Tel: 021 406 9100 SOMERSET MALL Tel: 021 850 6400 ILLOVO Tel: 011 219 6200 CLAREMONT Tel: 021 673 4700 TABLE VIEW Tel: 021 521 4000 CENTURION Tel: 012 001 1546 FISH HOEK Tel: 021 784 1580 TYGERVALLEY Tel: 021 943 3800 BEDFORDVIEW Tel: 011 453 0577
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