select
|

Auction Alliance in court over failed property transaction

Embattled auction house Auction Alliance is on the receiving end of another court action - instituted in the Western Cape High Court by a businessman who is also the chairman of golf course construction and design company Golf Data.

The case, which was settled before the court had an opportunity to decide the merits, centred on the auction of a 152-hectare piece of land in Bronkhorstspruit.

Somerset West businessman Robbie Marshall, 61, said the auction was conducted by Auction Alliance on behalf of the seller, Turquoise Moon Trading 262, in April 2011.

Marshall won with a bid of R3.9 million. He said he signed, paid a 5 percent deposit and a 7.5 percent auctioneer's commission - in total, just over R528 000 - in two instalments that month.

Simangele Thulo of Auction Alliance confirmed receipt of the payment the next month.

However, Marshall said the seller did not sign the conditions of sale, and his offer was rejected. So, in terms of the conditions, Auction Alliance should have repaid him the money, plus interest.

Auction Alliance filed a notice of intention to defend the action but, in March this year, Marshall applied for summary judgment, alleging the auction house did not have a bona fide defence.

Auction Alliance director Rael Levitt hit back, saying the seller did not have a representative present at the auction to give Auction Alliance the mandate to accept the highest bid.

"The mandate was given to Carroll Harrison telephonically," Levitt said.

"While it appears that the signing of the agreement by the defendant connoted only that the defendant was accepting only the rights conferred upon it by the agreement, it was (Auction Alliance's) intention, in signing as it did, to accept the offer on the seller's behalf." This did not affect Auction Alliance's right to retain the auctioneer's commission.

Levitt added the auction house also could not refund the 5 percent deposit without the "concurrence" of the seller. He took issue with the fact that Turquoise Moon Trading 262 had not been joined as a party to the proceedings.

Levitt said in terms of the sale agreement, disputes between parties should be dealt with through mediation and, if unsuccessful, arbitration.

Marshall's attorney, William Inglis, told Weekend Argus that the summary judgment application was removed from the court roll because the parties settled the case.

He would not give details of the settlement.


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 20 Feb 2018
      Owning a home is a milestone that most South Africans aspire to. Becoming a homeowner is a step towards growing personal wealth and owning an asset that appreciates in value over time, provided of course that the correct principles are applied during the buying stage of the process, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
    • 20 Feb 2018
      The suburb of Greenstone in Johannesburg east came to be over the last two decades. “In the beginning, it was literally just a hill with not so much as a shopping centre,” says Michael Levy, Property Consultant at Jawitz Properties Bedfordview. Today it has plenty shopping facilities and is fully built, boasting high-density, upmarket housing and residential estates, though still has a few pockets poised for commercial development.
    • 20 Feb 2018
      A major shift in the ageing paradigm has precipitated an equally dramatic transformation in the retirement sector, with modern accommodation options worlds away from the conventional model.
    • 19 Feb 2018
      Possibly one of the biggest sources of contention between landlords and tenants surrounds the rental deposit. “Most tenants rely on getting their rental deposits back when moving, so that they can use it to pay a deposit on their new home. Having it withheld or even having large amounts deducted can lead to a lot of distress,” explains Bruce Swain, CEO of Leapfrog Property Group.
    • 19 Feb 2018
      Situated approximately halfway between Johannesburg and Pretoria, Midrand was established in 1981 and forms part of the City of Johannesburg Metropolitan Municipality. It has become one of the major business hubs in the country with major pharmaceutical, textile, telecommunication and motoring giants situated within its boundaries.
    • 19 Feb 2018
      The PayProp Rental Index Annual Review of 2017 shows that the rental market suffered from much volatility during the year. It kicked off with rental growth spiking in January with weighted year-on-year growth (YoY) growth peaking at 8.3% before dropping to 6.34% in July, dipping down to less than 5% in November and then experiencing a slight uptick at 5.75% in December.
    • 19 Feb 2018
      While most homes in cluster complexes, estates and other gated communities come with at least one garage or carport, residents would often like additional permanent parking or storage areas for things like trailers, bikes, boats and caravans.
    • 16 Feb 2018
      Whether you own a property in a sectional title complex or are looking to invest in one, the financial standing of the body corporate is the single most important thing that can affect your investment or your buying decision.
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK