Gauteng woman faces R365,000 claim from Nedbank despite house demolished due to structural defects after moving in

Nedbank has approached the South Gauteng High Court in Johannesburg in an attempt to secure over R365,000 from a home loan linked to a property that was demolished due to significant structural defects.

The case involves Evodia Tshabalala, a homeowner who purchased a house in the Protea Glen Estate, Soweto, back in July 2012 with financing from Nedbank.

Tshabalala's journey into financial turmoil began when she fell behind on her monthly payment of R4,970, accumulating more than R99,000 in arrears.

Tshabalala's property was in a new development area, however, shortly after taking occupation, significant structural defects, including cracks in the walls, were discovered.

The defects were of such a serious nature that regulatory bodies, including the National Home Builders Registration Council (NHBRC), intervened. The property was subsequently declared uninhabitable and was demolished due to structural failures.

The site currently stands vacant, with no structure in existence. The matter was further reported to the office of the Public Protector.

With her home reduced to rubble and no viable resolution in sight, Tshabalala was forced to vacate the premises. Currently, she is renting alternative accommodation while still liable for her mortgage, leading to significant personal and financial distress.

In a pre-hearing discussion with Nedbank, Tshabalala, who did not have legal representation, reached a verbal agreement allowing her four months to rectify the matter.

However, acting judge Ntebo Nkoenyane raised concerns about this timeline, stating that Tshabalala's predicament could warrant potential claims against third parties, including the property developer and the builder.

"These are complex issues requiring proper legal advice and possibly further litigation to hold the responsible parties accountable and potentially secure redress for the respondent (Tshabalala)," she said.

Judge Nkoenyane added that proceeding without adequate time and legal assistance would be unjust, particularly since Tshabalala is a victim in this failed housing project. She proposed that an extension of at least a year would be more appropriate to allow for necessary legal consultations.

"[It will] allow time for the respondent to sell, if she so chooses and possibly secure the best bargain. Engage constructively with the applicant (Nedbank), from a potentially strengthened position, to explore a sustainable settlement, which could include a voluntary sale of the land, a debt restructuring, or another resolution informed by the outcome of any third-party claims.

"[She can also] seek appropriate legal advice and, if necessary, approach relevant consumer protection or ombud institutions," said judge Nkoenyane.

Critically, the judge emphasised that the suspension is not intended to absolve Tshabalala from her financial obligations. But it's there to facilitate a fair process aimed at achieving a more equitable and final resolution for all parties without causing financial ruinous circumstances.

The court ruled in favour of Nedbank, granting an order declaring the property executable. This action allows Nedbank to recover the outstanding amount, which totals over R365,000, along with an annual interest rate of 9.40% effective from September 2025.

The bank was also granted a reserve price of R355,000 while the order was suspended for a year.

sinenhlanhla.masilela@iol.co.za

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