PROPERTY MANAGEMENT
Key takeaways
The Background- An Unlawful Transfer and Disputed Lease
PROPERTY MANAGEMENT
Key takeaways
Good faith isn’ t enough: A lease with someone lacking lawful title offers no protection, even if the tenant acted honestly.
Huur gaat voor koop is limited: It only applies when a valid and lawful ownership transfer has occurred— not in cases of defective title.
No ratification without consensus: Allowing occupation or accepting rent doesn’ t equal a lease, clear agreement on essential terms is required.
This was the central issue in the recent case of Van den Heever NO and Others v Evolv Outdoor( Pty) Ltd and Another1. The court was asked to decide whether a tenant could remain in occupation under a lease concluded with a party who, despite being listed on the title deed, had acquired no legal ownership of the property.
The Background- An Unlawful Transfer and Disputed Lease
Bedford Conference Centre CC( in liquidation) was the owner of commercial premises in Bedfordview. After the entity was placed in liquidation in August 2020, the property was transferred to a third party, The Med Office Park( Pty) Ltd(“ Med Office”).
However, this transfer was later found to be unlawful, as it had taken place without compliance with the Insolvency Act or proper authority.
Med Office, while reflected as the registered owner, went on to lease part of the premises to Evolv Outdoor( Pty) Ltd(“ Evolv”) for its advertising business. Evolv entered the lease in good faith, unaware that Med Office had acquired title improperly.
The liquidators of the CC challenged the transfer in court and obtained an order in January 2023, which directed the Deeds Office to correct the title. In March 2023, the CC was officially restored as the lawful owner.
Shortly thereafter, the liquidators informed all tenants, including Evolv, that existing lease agreements would be reviewed. They made it clear that they did not consider themselves bound to any agreements concluded by Med Office and that rent should be paid into their trust account, pending further discussions.
Evolv, however, resisted these instructions, insisting that its lease remained valid. When negotiations failed, the liquidators applied for Evolv’ s eviction.
82 REI MAGAZINE MAY 2025