PROTECTION OF VULNERABLE PURCHASERS

In the recent case of Sarrahwitz v Maritz N.O. and Another ZACC 14 (case attached for ease of reference) the court held that the provisions of the Alienation of Land Act 68 0f 1981. (ALA), more specifically sections 21 and 22, are also to the avail of vulnerable purchasers, being defined as purchasers who run the risk of being rendered homeless due to the sequestration of a seller.

CONCLUSION

It was held that ALA has certain provisions that protect purchasers who buy residential land in terms of instalment payments stretching over more than 12 months.  In the case of a seller's subsequent insolvency, the Constitutional Court held that it was not constitutionally defensible to deny the same protection to a vulnerable purchaser who bought residential property in terms of a cash sale agreement where the purchase price was paid in one lump sum, or in less than a year.