Real Estate Investor November 2021 | Page 66

Therefore , the selling of a government RDP house within eight years of receiving it is prohibited .
What is Right ? In an event the beneficiary wished to sell the house after the 8 year period , preferably the house must first be offered back to the State . The house can only be sold to another party with written consent from Department of Human Settlements . The sale transfer can be done only through a specialist lawyer called a conveyancing attorney .
It important to note , as a buyer if you are interested in buying an RDP house , you should check that the property is not subject to the restrictive conditions and that a consent has been received from the Department of Human Settlements . Once a house is sold , a letter of authority from the Deeds Office must be attached to the Sale Agreement . In the event that you are offered an RDP house without the seller having the necessary documentation ( Title Deed & permission ) it ’ s highly possible that the sale is illegal .
Many people also rent out their RDP houses to others prior to the eightyear period . This is also discouraged , as the law prohibits letting out an RDP for remuneration . Bear in mind that , failure to follow the legal processes of selling an RDP house , in many occasions , results in descendants of the supposed sellers claiming back the RDPs that would have remained in the names of their parents .
Furthermore , it important for the beneficiary to indicate in a will who will inherit the property when death occurs . Sometimes the potential buyer may fall victim of being scammed because the department of Human Settlements has no record names of dependents who are entitled to take over the house .
“ The selling of a government RDP house within eight years of receiving it is prohibited .”
The Future of RDP Housing The Department of Human Settlements has told provinces it will no longer support new housing projects except for those benefitting elderly people , military veterans , people living with disabilities and child-headed households . This effectively ends South Africa ' s policy of providing free houses for the poor . According to Department of Human Settlements , the free subsided housing program has created the “ culture of entitlement ” amongst some South Africans .
Thus , government is looking to introduce a new strategy that will involve government support
32 NOV 2021 SA Real Estate Investor Magazine