Nedbank Limited v Mendelow NO and Another

Mrs Emily Valente owned immovable property. Shortly before her death, her son Riccardo forged her signature on a deed of sale purporting to sell the property to a company, U Valente Africa (Pty) Ltd, and also forged the consent of the other beneficiary, Evan Valente. Acting on these forged documents, the Master issued a certificate under s 42(2) of the Administration of Estates Act and the Registrar of Deeds registered transfer of the property to the company. Mortgage bonds were later registered over the property, ultimately in favour of Nedbank Ltd, to secure loans to the company. The company was later wound up. The duly appointed executors of the deceased estate applied for the transfer and bonds to be set aside, alleging fraud and lack of intention to transfer ownership.

The appeal was dismissed with costs. The property was to be re-registered in the name of the deceased estate and the mortgage bond in favour of Nedbank cancelled.

The case is a leading authority on the effect of fraud and forgery on the transfer of immovable property under South African law. It reaffirms that registration does not cure the absence of intention to transfer ownership and that invalid ownership defeats subsequent real rights such as mortgage bonds. The judgment also clarifies the limits of PAJA by distinguishing between administrative action and purely clerical acts of officials like the Master and Registrar of Deeds.