It may not be feasible or desirable to proceed with a back to back transfer, for example where the original seller did not qualify for a subsidy or the subsidy was declined and the first leg of a back-to-back is not possible.
In this case, it is possible for the housing authority to transfer directly to the new owner. There are two scenarios:
The self-classified owner does not qualify for a subsidy, and a regularisation process is required
Where the self-classified owner qualifies for a subsidy, a process is required. During this process, the housing authority will sell the property to the self-classified owner occupant for a nominal amount of R15 000. This process is described in more detail in the regularisation overview in this toolkit.
Where the original beneficiary confirms that the property was sold and ownership is not contested, the housing authority can transfer the property to the purchaser. In some cases, this owner may qualify as a beneficiary in his / her own right. In such cases, the new owner must apply for a subsidy, and be added to the project as a beneficiary. In practice this may require the housing authority or the province to add an additional phase to the project to accommodate additional beneficiaries.
The subsidy records pertaining to the original beneficiary must be retained as that individual has, in fact, benefitted from a subsidy.
Once the subsidy has been approved for the new owner, the property can be transferred in line with the core registration process
Where the subsidy is not approved, the regularisation process must be followed.
for more detail.