Case Law[2026] ZAGPPHC 16South Africa
Villa Anne Botique Hotel Group CC v Macolink Investments (Pty) Ltd and Others (14725/2016) [2026] ZAGPPHC 16 (29 January 2026)
Headnotes
at the time the auctioneer commenced with the formalities. The auctioneer noticed that and remarked that as she was a bidder, she would not hear what was going to be said. One of the other bidders remarked that the plaintiff indicated that she could hear what was being said.
Judgment
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# South Africa: North Gauteng High Court, Pretoria
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## Villa Anne Botique Hotel Group CC v Macolink Investments (Pty) Ltd and Others (14725/2016) [2026] ZAGPPHC 16 (29 January 2026)
Villa Anne Botique Hotel Group CC v Macolink Investments (Pty) Ltd and Others (14725/2016) [2026] ZAGPPHC 16 (29 January 2026)
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sino date 29 January 2026
REPUBLIC
OF SOUTH AFRICA
IN THE HIGH COURT OF SOUTH AFRICA
GAUTENG DIVISION, PRETORIA
CASE NO.: 14725/2016
(1)
REPORTABLE: No
(2)
OF INTEREST TO OTHER JUDGES: No
(3)
REVISED: Yes
DATE
29/01/2026
SIGNATURE
In the matter between:
In
the matter between:
VILLA
ANNE BOTIQUE HOTEL GROUP CC
Plaintiff
and
MACOLINK
INVESTMENTS (PTY) LTD
RELIANCE
AUCTIONS (PTY) LTD
First
Defendant
Second
Defendant
JUDGMENT
VAN
DER WESTHUIZEN, J
[1] The
plaintiff instituted an action against the defendants in respect of a
claim for confirmation
of the cancellation of a sale agreement and
the repayment of a deposit paid following on a sale of a property on
auction. The plaintiff
alleged that the defendants did not disclose
certain impediments of the said property which impediments impacted
upon the ability
to use the property for the purpose for which it was
purchased. The purpose being to use the property as a guesthouse.
[2] The
cancellation of the sale agreement was premised upon the following
alleged undisclosed facts:
(a) The existence of a High
Court interdict granted by the Gauteng High Court, Johannesburg,
under case number 21196/2015
which restricted the use of the property
as a commercial entity in contravention of the zoning rights afforded
to properties classified
as Residential 2 properties. The restriction
was not limited to the use of the property as a guesthouse.
(b) The existence of a High
Court application for the review and setting aside of the building
plans for the property under
case number 40997/2015 on the basis that
the building plans were approved in contravention of the National
Building Regulations
and Building Standards Act, 103 of 1997.
[3] The
vexed property was the subject of an auction arranged by the second
defendant. It acted as
the auctioneer thereof. The first defendant
was the owner of the said property. The auction took place at the
site of the property.
A number of bidders registered to participate
at the auction, one of which was the plaintiff.
[4] The
auction appears to have been widely advertised and a special
invitation to participate was
addressed to the plaintiff, who had
acquired a number of properties in the past that she utilised as
guesthouses.
[5] It
was the plaintiff’s case that the advertisement in respect of
the auction of the said
property clearly advertised that the said
property could be utilised as a guesthouse. For that reason, the
plaintiff’s interest
in the auction was raised. The catch
phrase in the advertisement read:
EXECUTIVE ACCOMMODATION &
GUEST HOUSE OPPORTUNITY RES 2
[6] It
is common cause that RES 2 relates to the property zoning and could
permit an application to
utilise the property in respect of a number
of uses, including the use as a guesthouse. Such use required an
application to the
municipality for permission for the specific
intended use. The procedure for such application is prescribed by
law. The plaintiff
confirmed her knowledge and experience in the said
requirement of obtaining the said use permission.
[7] The
plaintiff testified that she arrived at the auction just prior to the
commencement thereof.
Her evidence was that unbeknown to her, the
said property was the subject of a high court interdict prohibiting
the property being
utilised as a guesthouse and that the plans of the
buildings erected thereon were not approved. It is further the
plaintiff’s
case that those facts were not made known at the
auction, either prior to the commencement thereof, or during the
auction.
[8] It
is to be noted that at the entrance of the property, and in the
immediate vicinity adjacent
thereto, huge placards were placed
clearly indicating the existence of the high court interdict.
Pamphlets were also handed out
to people entering the premises
advising of the said interdict. Photos of the placards at the
entrance to the property were entered
into evidence. These photos
depicted the size of the placards and could hardly be not noticed.
[9] In
this regard, the plaintiff testified that she had not noticed the
placards, nor received a
pamphlet, when she entered the property as
she was late and in a hurry. Apparently, she appeared to have been
preoccupied.
[10] A video of the
proceedings prior to the commencement of the calling for bids and
during auction was entered
into evidence. It stands to be recorded
that the quality thereof was poor. Subsequent to the hearing of the
matter, a copy of the
video was provided to me. I further called for
a transcript of the recording to assist in following the video. By
agreement between
the parties such transcript was provided.
[11] From the video
and the transcript thereof, the plaintiff moved out of the room where
the auction was being
held at the time the auctioneer commenced with
the formalities. The auctioneer noticed that and remarked that as she
was a bidder,
she would not hear what was going to be said. One of
the other bidders remarked that the plaintiff indicated that she
could hear
what was being said.
[12] The rules of
the auction and the conditions and terms thereof were read out and
clarified prior to calling
for a bid. It was clearly indicated by the
auctioneer that there was an objection raised to utilising the
property as a commercial
entity. It was further clarified that as a
result of the objection the zoning was not in place for commercial
use and specifically
for any other use, including a guesthouse. It
was clearly stated by the auctioneer that should any purchaser wish
to use it for
commercial purposes, that person would be required to
go through the normal channels and procedure in that regard The
auctioneer
called for any questions relating to zoning and the like,
and stated clearly that the property was being sold
voetstoots
.
The property was to be sold as a RES 2 property. As recorded earlier,
that meant that following on the prescribed procedure, a
specific
type of commercial use of the property may be applied for. It was
also clarified which portions of the plans were apparently
the
subject of an objection. It was further clarified that a successful
purchaser was required to deal with the objection to the
plans of the
property. It was also made clear that the property could be used by
the purchaser for any purpose he or she intended,
provided that it
was residential use.
[13] Thereafter the
bidding commenced and the bid was awarded to the plaintiff. In terms
of the conditions of
the auction, she was obliged to pay the required
deposit. The plaintiff paid the deposit as required. That payment
formed the basis
of the plaintiff’s claim.
[14] It was the
plaintiff’s clear and sole intention to purchase the property
to utilise it as a guesthouse.
This intention was not made known to
the auctioneer at the auction. The plaintiff further testified that
neither the advertisement,
nor the info pack, disclosed the existence
of the interdict or that the plans of the buildings were not
approved, whether the subject
of high court proceedings or an
objection thereto registered at the municipality.
[15] The plaintiff
further testified that on concluding the purchase of the property and
signing the necessary
documentations and after leaving the property,
she was approached by a person who handed her the pamphlet referred
to earlier indicating
the existence of the high court interdict and
the complaint in respect of the plans. It was only thereafter that
she realised that
she could not use the property as a guesthouse and
that she would have to participate in the existing legal proceedings,
subsequently
having received notice by the party initiating the
interdict procedures.
[16] On obtaining
legal advice, the plaintiff cancelled the purchase agreement and
sought to reclaim the paid
deposit. The basis upon which she
cancelled and claimed repayment of the deposit was due to her being
unaware of the interdict
and the objection to building plans of the
property, and that she consequently could not utilise the property
for her intended
purpose to utilise it as a guesthouse.
[17] There is no
merit in the plaintiff’s contentions: that the advertisement
contained a misrepresentation
in that it was to be sold as a
guesthouse; that the defects to the use of the property as a
guesthouse were known to the auctioneer,
yet it proceeded to
advertise and offer it as a guesthouse.
[18] The plaintiff
has only herself to blame for her inattentiveness. She entered the
premises “with blinkers
on” not noticing the warnings on
the placard. She left the room where the auction was taking place at
a time when the aforementioned
issues were being ventilated, nor did
she pay sufficient attention to the detail being related to the
prospective bidders.
[19] As recorded
earlier, the issue of the zoning of the property was clarified to the
extent that the bidders
were forewarned that there existed no zoning
for use of the property as a commercial entity and in particular that
of a guesthouse
and that the property could only be used for
residential purposes. Those facts should have raised red flags to the
plaintiff. The
mere fact that the words “interdict”,
“application” and high court were not mentioned, is
neither here
nor there. The specific issue of zoning was clearly
mentioned and that the property could only be used for residential
purposes
and that the buyer was obliged to follow the channels etc.
if a different use was to be pursued.
[20] Furthermore,
the mere indication of “guesthouse” in the advertisement
is of no consequence. The
word is clarified by the word
“opportunity”. The context indicates a possibility of
such use, that the property lends
itself to be employed as such. It
was certainly not advertised as a guesthouse as a going concern, or
so specifically zoned. It
was a mere opportunity to so employ the
property, which would require the required steps to be taken.
[21] It follows that
the plaintiff cannot succeed in her claim and that it stands to be
dismissed.
I
grant the following order:
1. The action
is dismissed with costs.
C J VAN DER WESTHUIZEN J
JUDGE OF THE HIGH COURT
PRETORIA
On
behalf of Applicant: B D Stevens
Instructed
by:
Krȕgel Heinsen Inc
On behalf of Respondent: L C M
Morland
Instructed
by:
Eugene Pyper Attorneys
Date
of hearing: 29-31 July 2025
Date
of Judgment: 29 January 2026
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