The persistently challenging economic climate has led to a number of insolvencies, both that of high profile and man-in-the-street property owners, developers and occupiers. In property sale transactions, this is especially challenging where the seller is declared insolvent after the agreement was entered into but before transfer, the more so where the purchaser has paid part of the purchase price. This is because at common law, where a seller is declared insolvent after the sale of a property, but before transfer thereof, the property vests in the liquidator of the insolvent estate and the purchaser becomes a concurrent creditor of the insolvent estate.
The recent judgment in Relebipi Properties CC v De Wet N.O. and Others (36209/2012) [2014] ZAGPPHC 87 (17 January 2014) explains how the rules of insolvency law works in such a scenario. read more Summary
NATIONAL CREDIT ACT - RECENT AMENDMENTS ARE ABOUT MUCH MORE THAN JUST A CREDIT INFORMATION AMNESTY Apart from the much commented regulations setting out the details of the credit information amnesty passed at the end of March this year, other amendments to the National Credit Act 34 of 2005 ('the current Act') were assented to on the 16th of May 2014. These are equally important to the credit arena and we highlight the additional changes here. read more Summary