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
Characters remaining

    Latest Property News
    • 22 Jun 2018
      The rental market in many Johannesburg suburbs has shown encouraging signs of revival this year but it remains a competitive market and landlords who best cater to their market’s needs will reap the healthiest returns.
    • 22 Jun 2018
      Home design is constantly evolving to reflect the changing needs of society. We look at some of the ways in which our use of space is changing.
    • 22 Jun 2018
      While estate agents can help the seller with correctly pricing the property and marketing a property to the right pool of potential buyers, at the end of the day it’s the impression that the property will make on buyers that counts the most.
    • 21 Jun 2018
      Anyone who’s ever been involved in a building project that’s gone wrong will appreciate the importance of adequate insurance cover in the construction industry.
    • 21 Jun 2018
      A recent news story about a blind tenant caught in a legal battle with his body corporate over letters and notices he was unable to read and consequently comply with has raised the question: what are the legal obligations for landlords with disabled tenants?
    • 21 Jun 2018
      A trend that’s taken the world by storm in recent years is that of hygge (pronounced: hue-guh), a Danish concept that is about creating intimacy, connecting with loved ones and taking pleasure in small, ordinary things.
    • 20 Jun 2018
      Buying or selling real estate isn’t as easy as it is portrayed sometimes, especially if there is a death of a party during the transaction which can make it awkward, tricky and inconvenient.
    • 20 Jun 2018
      With interest rates remaining at historic lows and banks continuing to compete for mortgage finance business, first-time buyers with funds at their disposal are currently well-placed to gain that initial foothold on the property ladder, particularly in the light of the slightly lower growth rates currently experienced in residential property values.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us