Home sale deal ends in the high court

File photo

File photo

Published May 7, 2015

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Durban - A businessman has taken a couple to court to prevent them from selling their Reservoir Hills property to anyone else because he maintains he has a binding purchase and sale agreement with them.

Mogambery Moodley of Musgrave on Wednesday also sought an order from the Durban High Court to declare his first purchase and sale agreement with Ramdayal and Dorothy Sankar valid and binding, and for the second agreement to be set aside.

However, the Queensburgh couple have argued in court papers that both agreements are in fact null and void, and that Moodley has no claim to the property.

According to Moodley’s affidavit, the first agreement between the couple and himself was signed in June last year for R1.85 million. He claimed he was contacted by the couple’s attorney, who told him this agreement was invalid.

He said following the attorney’s persuasion, he signed a second agreement, in October, but this time not in his personal capacity, but as a member of the Monty Moodley Family Trust, for a R2m purchase price.

He said he did not realise he needed permission from the other trust members before signing this second sale agreement.

According to Moodley, he subsequently learnt from his lawyer that what was said about the first agreement was incorrect and “unfounded”, and that the second agreement was invalid and not binding.

He argued that a lawyer’s letter was sent to the Sankar couple calling for them to recognise the first agreement, bu this did not receive a response.

Moodley felt if the couple were to sell or transfer the property to someone else, he would be “seriously prejudiced” as he would be denied transfer of the property he had purchased.

In opposing court papers, Ramdayal Sankar argued Moodley was not being truthful to the court, saying Moodley was unable to raise the necessary finance to purchase the property, and had asked his lawyer to draft a new purchase and sale agreement.

Sankar said it was only at this stage that his attorney became involved and, following a consultation, they refused to sign this draft agreement because they wanted R2m for the property and not the R1.85m offered.

He denied his attorney advised Moodley the first agreement was invalid. Sankar argued Moodley had no right to the property and claimed both agreements were invalid. He also said Moodley told his attorney he had authority to sign the second agreement on behalf of the trust, but added this was now all irrelevant, as the agreement had lapsed.

Sankar claimed Moodley failed to show the court he was entitled to any relief or any right to the property, and asked for the application to be dismissed.

Acting Judge Alex Jeffrey adjourned the matter indefinitely.

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