- A woman was left homeless after she received only R35 000 of the R190 000 paid into an attorney's trust account from the sale of her property.
- Three other clients lost substantial amounts in property transactions with unpaid proceeds, missing funds and a failed transfer.
- The Western Cape High Court found that the attorney had misappropriated trust money, acted dishonestly and posed an ongoing risk to the public.
A woman who sold her property, planning to use the proceeds to build a new home, received only a small portion of the money paid into her attorney's trust account and ended up homeless.
Her experience was one of four complaints about property transactions that ultimately led to attorney Sindiso Kondlo being struck from the roll of legal practitioners.
The High Court in the Western Cape found that Kondlo had misappropriated trust funds entrusted to him by clients, failed to account for money received in property transactions and repeatedly ignored disciplinary proceedings brought by the South African Legal Practice Council.
Judge RCA Henney and Acting Judge S Anderssen concluded that Kondlo was not fit to keep practising and ordered that his name be removed from the roll of legal practitioners.
Woman left homeless after property sale
The first complaint came from the sale of a property for R220 000. The purchaser paid R30 000 directly to the seller, and transferred the remaining R190 000 into Kondlo's trust account. Even though the money was received, only R35 000 was paid to the seller.
The court heard that the woman had planned to use the money to build a new home. Instead, she was left homeless when most of the money was not paid over.
When the Legal Practice Council looked into the matter, Kondlo delayed responding for about seven months. When he eventually replied, his explanation conflicted with bank records that confirmed the R190 000 had been received into his trust account.
He was later accused of misappropriating R155 000 belonging to the client, but he did not attend the disciplinary hearing about the complaint.
Divorced woman and former husband left waiting for money
The second complaint came from a divorced woman who asked Kondlo to handle the property transfer and pay her former husband his share of the money.
The woman paid Kondlo R180 000 for the transaction, but her former husband received only R15 000 in 2018 and another R5 000 in 2020. The court also noted that the title deed was never given to the client.
Despite repeated requests from the Legal Practice Council, Kondlo never gave a proper explanation. The matter eventually went to a disciplinary hearing, which he also did not attend.
Evidence before the disciplinary committee also raised questions about an amount that Kondlo said was meant for SARS.
Property buyer loses over R300 000 in failed transaction
The third complaint came from a buyer who paid R312 550, including transfer costs, to buy a property. Before registration could happen, Kondlo paid R100 000 to the seller and also paid commission to the estate agent, even though the buyer objected.
The deal later fell through when the Deeds Office rejected the transfer because the property had already been sold by someone else. The seller and former spouse had previously been required by a divorce order to sell the property and split the money.
The Legal Practice Council's investigation found another problem. The payment of R300 000 had been made into an account that was presented as a trust account, but it was not Kondlo's trust account.
Disciplinary charges included not responding to correspondence, practising without a Fidelity Fund Certificate, failing to account for client funds and paying money to the seller without the buyer's consent. Kondlo again did not attend the disciplinary proceedings.
Client still owed R70 000 after transfer completed
The fourth complaint came from a client who paid R150 000 to transfer a property. Although the transfer was eventually completed and the title deed was issued in February 2021, the client was still short by R70 000. The outstanding money was never paid, despite efforts to recover it.
The Legal Practice Council charged Kondlo with misconduct and behaviour that brought the profession into disrepute. He did not attend that disciplinary hearing either.
Court finds pattern of dishonesty
The judges found that the four complaints showed a repeated pattern of misconduct involving trust money and vulnerable clients.
The court said the evidence showed that Kondlo had misappropriated trust funds entrusted to him by clients, handled those funds recklessly and failed to meet his fiduciary duties.
The judges found that his dishonesty caused financial losses to clients and noted that the misconduct happened across several property transactions, not just once.
The court was also concerned that Kondlo had handled property transfers even though he was not admitted as a conveyancer, and found that he had misrepresented his qualifications to the public.
A review of banking records showed a large shortfall in the trust account of S Kondlo Attorneys Inc, along with repeated transfers from trust accounts into personal and business accounts.
According to the court, Kondlo repeatedly ignored letters from the Legal Practice Council, failed to account for irregular transactions and never gave a real explanation for the missing funds.
Public needs protection court rules
When deciding whether to suspend Kondlo or remove him permanently from the profession, the court put significant weight on the need to protect the public.
The judges found there was a real risk that more trust money would go missing if he continued practising. They also pointed out that some of the affected clients were ordinary people with limited money and little experience in property transactions.
The court said Kondlo had shown dishonesty, lacked the integrity expected of an attorney and was not fit to remain in the profession.
His name was removed from the roll of legal practitioners. The court also appointed a curator to take control of his trust accounts and practice affairs, and ordered him to pay costs on an attorney and client scale.
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