Applications for title-deed pre-emptive rights waiver
The sale of subsidised housing units by beneficiaries is a major concern to the Department of Infrastructure. In many instances the seller does not improve his/her living conditions but usually ends up, after receiving a once off cash injection for the sale, in the same living conditions as they were before receiving a subsidised house.
The pre-emptive right clause is a condition imposed in terms of the Housing Act, Act 107 of 1997, as amended which intends to prevent the flagrant sale of state subsidised housing units.
To regularise the current practice of waiving the Department's pre-emptive right in certain cases, the Policy regarding the Procedure and Evaluation of Applications to Waive the Pre-Emptive Right Applicable to all Government Subsidised Units Administered By The Western Cape Government via its Department of Human Settlements aims to put in place the procedure in which to apply for such waiver as well as the necessary delegations to approve such requests.
The policy sets out the process for applications in the following cases:
- The pre-emptive right has lapsed,
- The pre-emptive right has not lapsed yet,
- Deceased estates where the 8-year period has not lapsed,
- the Divorce Order cedes the property to a particular party, or if the property must be sold and the proceeds split,
- the original beneficiary wants to register a mortgage bond against the property
The application process can be viewed on page 4 of the policy.