Case Law[2025] ZAGPJHC 175South Africa
Buitendag v Van Rooyen (2024/077124) [2025] ZAGPJHC 175 (17 February 2025)
High Court of South Africa (Gauteng Division, Johannesburg)
17 February 2025
Headnotes
property and settle any financial obligations ("personal items of payment" or
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## Buitendag v Van Rooyen (2024/077124) [2025] ZAGPJHC 175 (17 February 2025)
Buitendag v Van Rooyen (2024/077124) [2025] ZAGPJHC 175 (17 February 2025)
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sino date 17 February 2025
THE
HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, JOHANNESBURG
Case
2024-077124
(1)
REPORTABLE: No
(2)
OF INTEREST TO OTHER JUDGES: No
(3)
REVISED: Yes
17
February 2025
In
the matter between:
LUCHAN
BUITENDAG
Applicant
and
WIENANDT
RUAN VAN ROOYEN
Respondent
This
judgment has been delivered by uploading it to the CaseLines digital
database of the Gauteng Division of the High Court of
South Africa,
Johannesburg, and by emailing the attorneys of record of the parties.
The deemed date and time of the delivery are
10H00 on 17 February
2025.
JUDGMENT
DU PLESSIS J
# Introduction
Introduction
[1]
This case
concerns the termination of co-ownership of an immovable property
following the breakdown of a romantic relationship between
the
parties. It gives credence to the maximum
communio
est mater rixarum
.
[1]
The key issue is how the division of the property and expenses should
occur, given the competing claims regarding financial contributions,
fairness, and ancillary practical considerations.
[2]
The applicant, Ms Buitendag, and the respondent, Mr van Rooyen, were
in a romantic relationship for approximately four
years. Initially,
they lived with Ms Buitendag's mother before moving into an apartment
owned by Mr van Rooyen. In October 2020,
they decided to purchase a
house together with the intention of making their relationship more
permanent.
[3]
The property was purchased for R1 080 000, with Mr van Rooyen paying
a deposit. The balance was financed through a bond
of R962 000.
Mr van Rooyen also covered the transfer and bond registration costs.
There was no express agreement on how expenses
related to the
property would be shared.
[4]
The relationship ended one month after purchasing the property, and
Ms Buitendag moved out. Since then, Mr van Rooyen
has remained in
exclusive occupation of the house and has borne the ongoing costs,
including bond repayments, rates and taxes,
insurance, and
maintenance. He estimates that he has spent R 611,640.87 to date.
[5]
By June 2023, Ms Buitendag requested to be released from the bond and
co-ownership as her financial obligations under
the bond prevented
her from obtaining credit. Mr van Rooyen was reluctant to sell or
transfer the property into his name due to
concerns over transfer
costs and uncertainty about qualifying for a bond on his own. He
later proposed applying for a substitution
bond but insisted that Ms
Buitendag cover the associated costs. They could not agree on how the
co-ownership should terminate,
so they each approached attorneys for
assistance.
[6]
On 6 June 2024, Ms Buitendag's attorneys proposed a settlement,
offering Mr van Rooyen three options:
a. Purchasing her
50% share at market value within three months, subject to his ability
to secure financing; or
b. Listing the
property for sale and dividing the proceeds equally after
sale-related expenses; or
c. Selling the
property by public auction and dividing any proceeds.
[7]
This proposal was rejected by Mr van Rooyen's attorneys, who cited a
Lightstone valuation valuating the property at R900 000,
arguing
that selling the property would result in a financial loss. The
attorneys emailed that Ms Buitendag's proposal was thus
rejected by
Mr van Rooyen "with the contempt it deserves".
[8]
A second settlement proposal was made, modifying the terms to:
a. Allowing Mr van
Rooyen to buy out her 50% share of the undivided property at a fair
market value, conditional on securing
a bond;
b. If unable to
obtain a bond, sell the property on the open market for the highest
reasonable and realistic offer, with Mr
van Rooyen retaining all
proceeds due to his financial contributions;
c. If no sale
occurred within six months, sell the property by public auction, with
Mr van Rooyen assuming the risk of any
shortfall.
[9]
This
proposal was also rejected within 30 minutes, with Mr van Rooyen's
attorneys replying "[o]ns stel voor u kliënt gaan
voort met
haar aksie".
[2]
[10]
Despite refusing the formal settlement offers, Mr van Rooyen
contacted Ms Buitendag two days later, informing her that
he had
prepared an R1 000 000 offer to purchase for her to sign so that he
could apply for a bond in his name. She requested that
they
communicate through their attorneys. He contacted her attorney
directly, but the attorney advised that all settlement discussions
should be done through the legal representatives. Her attorneys also
wrote his attorneys to inform them of the phone call. His
attorneys
did not reply to the email.
[11]
Ms Buitendag subsequently launched this application requesting that
the property be sold in the open market or by way
of auction. She did
not want to be liable for the costs of the transfer.
[12]
Mr van Rooyen remains opposed to selling the property on the open
market or by way of auction, arguing that this
would result in
financial loss. Since he contributed more to the purchase and upkeep
of the property, he submits that he should
be compensated. In his
notice of motion, he states:
a. “He will
purchase the 50% undivided share with no clear indication of the
price he considers fair, with Ms Buitendag
paying the various
transfer costs of the bond and the house into his name;
Alternatively
b. Ms Buitendag
pays R305 820.43 as reimbursement for past expenses before he will
agree to buy her share.”
[13]
He has not submitted a sworn valuation of the property, home loan
bank, or proof of any other expenses.
# The law
The law
[14]
A co-owner
cannot be forced to remain a co-owner where the relationship between
the co-owners has deteriorated to such an extent
that the
relationship cannot continue.
[3]
In such instances, it should be terminated. The parties in this
matter agree to the termination of the co-ownership. They disagree
on
how it should be terminated and thus approached the court for
assistance.
[15]
The crisp matters in contention, as set out above. are whether the
property should be sold on the open market, or the
50% co-ownership
share of the applicant be transferred to the respondent, and whether
the applicant is obligated to cover a portion
of the respondent's
expenses occurred to date, or the expenses for the transfer into his
name.
[16]
In
Robson
v Theron,
[4]
the court elaborated that the
actio
communi dividundo
originates from Roman law and was subsequently integrated into
Roman-Dutch law, which continues to be well-established in
contemporary
legal practice. The
actio
communi dividundo
allows co-owners to divide jointly held property and settle any
financial obligations ("personal items of payment" or
praestationes
personales
)
[5]
linked to it. In other words, the
action
communi dividundo
deals with the division of the property and the adjustment of the
various claims amongst the co-owners.
[6]
This action applies regardless of whether one or both parties are in
possession of the property.
[17]
The purpose
of this action is twofold: Firstly, to divide the joint property and
secondly; to settle financial claims related to
profits earned or
expenses incurred in connection with the shared asset. A fundamental
principle behind this action is that, as
stated earlier, no co-owner
is obliged to remain a co-owner against their will. If co-owners wish
to divide their property, they
can either agree on a division
themselves or seek court intervention if they cannot agree.
[7]
[18]
When resolving co-ownership disputes, a court has a broad and
equitable discretion. It considers factors such as the
specific
circumstances of the case, what is most beneficial for all co-owners,
and their preferences. If a physical division of
the property is
impossible, impractical, or unfair, the court may either award the
entire property to one co-owner, provided they
compensate the others
or order that the property be sold by way of auction, with the
proceeds being divided among the co-owners.
[19]
These
remedies, grounded in Roman-Dutch law, have been confirmed in South
African case law.
[8]
[20]
Robson v
Theron
[9]
also laid the foundation for more flexibility when co-ownerships are
dissolved. While
Robson
was concerned with a (commercial) partnership, the principles were
accepted in
Van
Onselen NO v Kgengwenyane,
[10]
which was concerned with a (romantic) partnership and a residential
property – similar to this case. The court in
Van
Onselen
clarified
that the law has moved away from a rigid approach regarding the
division of co-ownership. Instead, the courts have a greater
equitable discretion to ensure that the outcome is fair to the
parties and practical in the given circumstances. Of course, not
being strictly bound by rigid rules does not imply that this power is
unlimited. Instead, it means that the traditional principle
that the
property should be sold at a public auction to the highest bidder is
not an absolute rule but a guideline. These legal
principles will
guide my broad discretion in coming to a fair solution, although I
must repeat Selke J, in saying that a court
cannot perform
miracles.
[11]
[21]
To return to the facts, each option (buying out of Ms Buitendag's
share at fair market value or selling the property
on the open market
or auction) has advantages and disadvantages.
[22]
On the one hand, a buy-out would allow Mr van Rooyen to retain
ownership of the property while paying Ms Buitendag her
undivided
share. This would allow Mr van Rooyen to continue residing on the
property and prevent unnecessary losses associated
with a rushed sale
in poor market conditions. The transaction costs may also be lower,
as agent commissions and auction fees would
be avoided. The
disadvantages are all the uncertainties in such an approach: Mr van
Rooyen's ability to qualify for a bond; disputes
in the valuation
process and the question of what to do with Mr van Rooyen's expenses.
Thus, A fair solution would be premised
on the purchase price being
determined independently, Mr van Rooyen having to secure financing
within a specified time, and clarity
on the expenses that Ms
Buitendag should pay, if any.
[23]
On the other hand, a sale of the property would ensure a clean break,
prevent disputes over valuation by allowing market
forces to
determine the fair price, and put a time limitation on how long to
wait before proceeding to sell the house on auction.
The
disadvantages are the possibility of financial loss to both parties,
the fact that Mr van Rooyen would need to vacate the property
and
having to wait for the property to get sold (either privately or by
way of auction). There is also a risk of selling the property
at a
price lower than the outstanding bond, which means the parties will
be liable for the outstanding amount.
[24]
As alluded to, auxiliary to all this, is the issue of whether Ms
Buitendag should share in the expenses that Mr van Rooyen
incurred
during the co-ownership. To answer this question, I distinguish
between costs associated with acquiring and maintaining
co-ownership,
such as the initial deposit, the bond registration fees, property
transfer costs, rates and taxes, and insurance.
[25]
There are also two underlying principles: Firstly, the fact that a
co-owner does not reside in the property does not
absolve them of the
duties of (co-)ownership and s the financial obligations in
terms of the mortgage bond. For example,
Ms Buitendag remains jointly
liable for the mortgage bond, as co-ownership carries rights and
responsibilities regardless of occupation.
For this reason, I am not
convinced that it would be entirely fair to absolve her from such
responsibilities by not requiring her
to pay some of the costs of
establishing and maintaining the co-ownership relationship. Even more
so, should Ms Buitendag benefit
from the proceeds of the property
sale (possible profits), it is only fair that she also contributes to
certain joint ownership
expenses. For instance, rates and taxes,
insurance, bond registration, and transfer costs are
co-ownership-related expenses and
should be shared equally.
[26]
Secondly, it must be considered that Mr van Rooyen exclusively
occupied the property, and some expenses incurred were
due to this
(exclusive) occupancy. In this instance, bond repayments function as
a substitute for rent and should be borne solely
by Mr van Rooyen.
Similarly, routine maintenance is an ordinary cost of living and
should be the responsibility of the party who
benefited from the
occupation, and Mr van Rooyen remains liable for that.
[27]
Accordingly, if the property is sold, 50% of the deposit, rates,
taxes, insurance, and initial purchase costs should
be deducted from
the net proceeds before division between the parties. The bond
instalments, maintenance and consumption charges
should not be
deducted.
[28]
As indicated above, both options have their advantages and
disadvantages. It seems reasonable to give Mr van Rooyen the
option
to buy out Ms Buitendag, but strict timelines should be laid out to
ensure that the matter does not continue indefinitely.
Mr van Rooyen
cannot claim the costs that can be regarded as "substitute for
rent" payments (the bonds, the water and
electricity
consumption, and the everyday maintenance). He should also pay the
costs of the transfer into his name. Ms Buitdendag
is liable for 50%
of the expenses incurred to become co-owner and co-bondholder (i.e.
the deposit, the initial transfer and bond
registration costs) and
the property rates and taxes. She should, however, not be liable for
the transfer costs associated with
transferring the house into the
sole name of Mr van Rooyen.
[29]
Should the buy-out option not materialise within the stipulated time
for whatever reason, then the property should be
put on the open
market to be sold, failing which, it should be sold by way of
auction. The order will provide clear mechanisms
and timeframes to
which the parties will be bound.
# Costs
Costs
[30]
The normal rule is that costs should follow the results. The
applicant is substantially successful as the court's decision
is
mostly based on one of the offers she made (through her attorney) to
the respondent, and what is set out in her notice of motion.
[31]
Despite various attempts to settle, the matter could not be settled.
The respondent's WhatsApp message to her, in which
he offered to
apply for a loan of R1 000 000 to take over the bond, seems
genuine, but unfortunately, it was not made
through the respondent's
attorneys. It is unclear why his attorneys did not reply to the
applicant's attorneys' email to inform
them that this offer was made.
These considerations would have been more relevant had the applicant
persisted with costs de bonis
propris against the respondent's
attorneys, for the refusal to mediate and avoid litigation. Instead,
they merely asked for costs.
It remains unfortunate that there was no
greater effort to mediate at that stage to avoid litigation. The
respondent's stance that
the applicant should continues and litigate
warrants a cost order against him.
Order
[32]
The following order is made:
1.
The joint ownership of the immovable property
described as Erf 1985,
Geduld Extension, Springs Registration Division IR, Gauteng, also
known as 50 Hofmeyer Street, Geduld Extension,
Springs, Gauteng ("the
Property") is hereby terminated.
2.
The respondent shall have the first option
to acquire the applicant's
50% undivided share in the property, subject to the following
conditions:
2.1.
The purchase price shall be determined by an independent valuer
appointed by
agreement between the parties within 30 days of this
order, or failing agreement, by an independent valuer appointed by
the Chairperson
of the South African Institute of Valuers, with the
costs for such an appointment to be shared equally between the
parties.
2.2.
The respondent shall deduct 50% of the expenses relating to the bond
registration
and transfer, the deposit paid, and the rates and taxes
from the buy-out price. The respondent may not deduct bond
instalments,
consumption charges or routine maintenance payments.
2.3.
The respondent must secure financing and initiate the transfer of the
applicant's
share within 30 days from the valuation date.
2.4.
Upon transfer, the applicant shall be fully released from all
liabilities related
to the existing mortgage bond.
2.5.
The respondent shall bear all transfer and bond registration costs
arising
from acquiring the applicant's share.
3.
If the respondent does not exercise the buy-out
option within 60
days, the property shall be placed on the open market for sale at a
fair and reasonable market-related price on
the following terms:
3.1.
Each party shall cooperate with the other regarding the sale,
particularly
with the appointment of an estate agent to sell the
property at the highest and reasonable offer. If the parties cannot
agree on
an estate agent, each party shall appoint one.
3.2.
Each party shall cooperate with the appointed estate agent(s) in the
viewing
of the property by any prospective purchaser, sign all such
documents required and do all things necessary in order to transfer
registration of the property in the name of any purchaser.
3.3.
The proceeds of the sale of the property shall first be paid to the
bondholder
for the amount outstanding on the mortgage bond registered
against the title deed of the property.
3.4.
The following expenses shall be deducted from the proceeds of the
sale, if
any, before division between the parties:
3.4.1.
All expenses and costs incurred in the sale of the property,
including estate agent's commission, if applicable.
3.4.2.
The 50% of municipal rates and taxes, homeowner's insurance, and
initial purchase costs (transfer and bond
registration fees) that the
respondent paid.
3.4.3.
The bond repayments and maintenance costs shall not be deducted, as
they were incurred exclusively for
the benefit of the respondent.
3.5.
The net proceeds after the deductions in 3.4 above shall be divided
equally
between the parties.
3.6.
If the property is sold at a loss, the shortfall must be shared
equally between
the parties after the deductions in 3.4.
4.
If the property remains is not sold within
six months of this order,
then the Sheriff of the High Court is appointed as receiver and
liquidator to sell the property by way
of public auction within four
months of their appointment.
4.1.
The liquidator shall have the authority to:
4.1.1.
Sign all documents necessary to transfer the property to the
purchaser.
4.1.2.
Pay the bondholder the amount outstanding on the mortgage bond
registered against the title deed.
4.1.3.
Settle any outstanding municipal rates and taxes from the sale
proceeds.
4.1.4.
Deduct reasonable sale-related expenses, including auction costs and
agent commissions.
4.2.
The net proceeds of the auction shall be divided equally between the
parties,
after the deductions outlined in paragraph 3.4.
5.
The respondent is to pay the cost of this
application, which costs
are to be taxed on scale A.
WJ
du Plessis
Judge
of the High Court
Gauteng
Division, Johannesburg
Heard
on: 12 February 2025
Decided
on: 17 February 2025
For
the applicants:
SPM
Vorster instructed by O'Donoghue & Marais Inc
For
the respondents
K
Blair instructed by JH van Heerden & Cohen Attorneys
[1]
Co-ownership is the mother of disputes
[2]
We suggest that your client continues with her action.
[3]
These principles were set out in numerous cases, such as
Prinsloo
v van Niekerk
1921 TPD 115
and
Ntuli
v Ntuli
1946 TPD 181.
[4]
Robson
v Theron
1978 (1) SA 841
(A), references omitted.
[5]
See 854H – 855F for the authority cited.
[6]
See Van der Merwe LAWSA “Things” volume 27 par 217 and
the authorities he cites, namely Grotius 3 28 9;
Oosthuyzen
v Plessis
(1887) 5 SC 69
;
Fryer
v Engelbrecht
1910 CTR 863;
Runciman
v Schultz
1923 TPD 4.
[7]
See also
Ntuli
v Ntuli
,
1946 TPD 181
at 184.
[8]
See
Estate
Rother v Estate Sandig
,
1943
AD 47
at 53–54;
Drummond
v Dreyer
1954 (1) SA 306 (N).
[9]
1978 (1) SA 841
(A), references omitted.
[10]
1997 (2) SA 423
, see specifically 329 I.
[11]
Drummond
v Dreyer
1954 (1) SA 306
(N) at 308B.
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