Regularising non-beneficiaries

• Where the occupant does not qualify for a subsidy because he or she (or their spouse) has already owned a property or benefitted from a subsidy in the past or earns too much for a subsidy, the occupant must purchase the property for a nominal amount of R15 000, and must pay transfer costs

• The buyer is free to select a conveyancer. Alternatively, the housing authority can refer the buyer to the project conveyancer. The Housing Authority may wish to request a special reduced rate from the project conveyancer for these buyers.

• Where the occupant cannot pay R15 000 and or transfer costs, the occupant can apply for a rebate.

• In order to review applications in a transparent manner, the municipality should establish a review panel which should consider:

  • How the occupant came to be in the property and how much was paid to purchase the property from the original beneficiary

  • The income of the occupant

  • The ability of the occupant to access funding

• Where the panel is unable to support the request of the occupant for a price rebate, and the occupant is unwilling to pay anything further to regularise ownership, the housing authority can lease the property to the occupant with an option to purchase at a later stage.

• While the housing authority has the right to determine the terms of the lease agreement, it may be optimal to set the rental at R0, with the leaseholder responsible for maintenance and payment of services

• As the leaseholder, the housing authority will have to manage the lease. A specific official should be made accountable for this

See section on Regularisation