Court orders Gauteng law firm to refund widow R500,000 deposit after lengthy legal battle.
The South Gauteng High Court in Johannesburg ordered a law firm to repay a widow the R500,000 deposit she and her late husband paid towards the purchase of a family home almost a decade ago, ruling that there was no lawful basis for continuing to withhold the money after the sale collapsed.
Acting Judge Madima ordered Maseko Tilana Inc to pay PS the R500,000 deposit that had remained in the firm's trust account since 2017. The court also directed the firm to provide proof to both the court and the Legal Practice Council that the funds remained in its trust account and ordered it to pay attorney-and-client costs.
The dispute dates back to June 2017 when PS and her husband, married in community of property, agreed to purchase a property in Randburg for R1.9 million. At the time, the couple and their family were tenants at the property.
They paid a R500,000 deposit into the trust account of the transferring attorneys and secured a mortgage bond for the balance of the purchase price. According to the judgment, the conveyancing file was later transferred to Maseko Tilana Inc, which became responsible for holding the deposit in trust pending transfer.
