Bondev Midrand (Pty) Ltd v Puling; Bondev Midrand (Pty) Ltd v Ramokgopa

Bondev Midrand (Pty) Ltd, a property developer, sold residential erven in the Midstream Estate to the respondents. The title deeds contained a registered condition obliging purchasers to erect a dwelling within 18 months, failing which Bondev would be entitled, but not obliged, to claim re-transfer of the property against repayment of the original purchase price. The respondents failed to erect dwellings within the prescribed period. Several years later, Bondev instituted proceedings seeking re-transfer of the properties. The respondents raised prescription as a defence, contending that Bondev’s claim constituted a ‘debt’ which had prescribed after three years in terms of the Prescription Act 68 of 1969.

In both cases, the appeals were dismissed with costs.

The case clarifies the distinction in South African property law between real rights and personal rights arising from conditions registered against title deeds. It confirms that a developer’s right to claim re-transfer of property for failure to build within a stipulated period is a personal right, not a real right, and is therefore subject to prescription. The judgment is significant for developers, conveyancers, and deeds registries, particularly in relation to the enforceability and prescription of repurchase or re-transfer clauses.