Human Settlement

Selling an RDP House is Discouraged

Not only is the act of selling RDP houses a smack in the face of government’s intention of eradicating homelessness, but it is also illegal.

This is so because those beneficiaries who sell RDP houses are vulnerable persons who may not be able to acquire a home of their own after selling. This means that they resort to returning back to shacks and other informal settlements after selling the government-provided house.

In terms of the Housing Act 107 of 1997, a beneficiary may not sell the house within the first eight years of having taken occupancy.

“The reason for this is because a title deed is issued to the legitimate beneficiary with an endorsement that it will require an exemption or rejection of buy-back offer by the MEC of Housing for that property to be transferred to another person. If you buy the house it will not be easy to change the title deed if the house was sold within the period of eight years,” Member of Mayoral Committee for Human Settlements Cllr Lesiba Mpya said.

Should a beneficiary wish to sell then government has first option to buy it, and reallocate it to a person on the government housing waiting list.

Many also rent out their RDP house during the eight-year period. This is also illegal, as you may not vacate an RDP for remuneration.

If after the eight year period you wish to sell, it is important to ensure that the sale is done legally through a lawyer qualified to handle deeds of transfer, commonly known as a conveyancer.

Beneficiaries of RDP houses facing circumstances that compromise their welfare can approach the City and apply for social relief packages such registering on the indigent database. Benefits for those who qualify include:

  • 100% rebate on assessment rates
  • Free refuse removal
  • First 100kwh of electricity per month
  • First 9kl of water sewer per month