GEORGE NEWS - The developer of the collapsed Neo Victoria building has agreed to pay back the deposits of buyers of apartments in the building. However, their purchase contracts are not being cancelled for the time being.

This transpired after a concerned buyer recently approached George Herald with concerns over the status of her deposit. 

The buyer, who asked to remain anonymous, said buyers had received virtually no communication from the developer, Neo Victoria Developments, or their conveyancing attorneys, Miltons Matsemela Oosthuizen Inc, since the building's collapse on 6 May, and they were getting worried about their deposits. 

She was also not able to obtain information from the estate agent through whom she had bought the apartment as they (the estate agents) were not allowed to talk to the buyers. " We, the buyers, were also prohibited from speaking to the media."

There were 47 flats in the building. "Before the collapse, I learned from the estate agent that all the flats had been sold," said the buyer.

A few days after the newspaper enquired to the conveyancer via e-mail about the buyers' deposits and purchase contracts, the concerned buyer informed the newspaper that she had received a letter from them. It stated that all the buyers' deposits and interest would be repaid on instruction of their client.

According to Miltons' letter, the developer was still in negotiations with "the insurance company and the building contractor". 

Miltons further states in the letter that Neo Victoria Developments was not consenting to any cancellation of the existing deeds of sale. A final decision in this regard would be made once the negotiations were finalised.

The buyer was upset about the state of affairs. "We can therefore still be forced to buy property from the developer at a later stage, but who wants to have anything to do with them after all that has happened. To be bound like this is unfair. 

"No trust relationship remains and as far as I am concerned; the flats that were a luxury investment of R1,8m for a two-bedroom unit, are now worthless because of what has happened."

She referred to the purchase contract in which the developer undertook to "construct the Property in accordance with national building regulations, other relevant statutory requirements relating to construction work and substantially in accordance with the annexures".

'The annexures' refers to the location plan, layout and building plan, and schedule of finishing. "According to the contract, it is the developer's responsibility to appoint the contractors, etc, in accordance with industry standards."

Neither the conveyancing attorney nor Ryan du Preez, the attorney who has been communicating with the media on behalf of the developer since the building collapse, responded to the newspaper after its queries.

Questions on whether the developer will attempt a new project and how such a redevelopment would affect sales prices, remain unanswered. The completion of the Neo Victoria building was due in August.

Theuns Kruger, the owner of the construction company, Liatel Developments, has also not been responding to queries from the newspaper regarding issues with compensation of survivors and those injured in the implosion.

The incident is being investigated by the Engineering Council of South Africa, Western Cape Government, SAPS and the Department of Employment and Labour.

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