De Klerk v Steven-Lee Properties (Pty) Ltd and Another

The appellants purchased two immovable properties from the respondent developer in a township development within the Emfuleni Local Municipality. Clause 15.1 of the sale agreements required the developer to make arrangements, to the satisfaction of the appropriate local authority, for the provision of essential services to the street boundary. The properties were transferred to the appellants in 2007. After a later dispute between Rand Water and the municipality regarding sewage pump stations, Rand Water refused to approve further building. The appellants alleged that clause 15.1 was a suspensive condition that had not been fulfilled, alternatively that there was a tacit term entitling them to build within a reasonable time, and sought cancellation and re-transfer of the properties.

The appeal was dismissed with costs.

The case clarifies the distinction between suspensive conditions and contractual terms in South African contract law, affirms principles governing the interpretation of sale agreements, and confirms that developers are not liable for subsequent failures by municipalities or statutory bodies where contractual obligations have been fulfilled.