Chretien v Bell

The appellants, Mr and Mrs Chretien, property developers, entered into a written agreement on 30 March 2005 with the respondent, Ms Bell, for the sale of immovable property (Erf 374, Ballitoville). The agreement recorded the parties, property description and purchase price, and stated that the price would be paid in cash with no deposit or loan. However, a special condition provided that the ‘purchase price payment details’ would be agreed upon in writing by 30 April 2005. No such written agreement was ever concluded. Despite this, Ms Bell paid the full purchase price into the conveyancer’s trust account in July 2005. In 2006 the sellers refused to proceed, contending that the agreement was void ab initio for failure to comply with s 2(1) of the Alienation of Land Act 68 of 1981, as the time for payment had not been agreed upon in writing. The High Court held the agreement enforceable, and the sellers appealed to the Supreme Court of Appeal.

The appeal was upheld with costs. The order of the High Court was set aside and replaced with an order dismissing the respondent’s application with costs, including the costs of two counsel.

The case reaffirms the strict formal requirements of the Alienation of Land Act and confirms that the time for payment of the purchase price is a material term that must be recorded in writing. It underscores that agreements for the sale of land that leave material terms for future agreement are void and unenforceable, reinforcing certainty and formality in land transactions under South African law.