Re: RDP houses - The selling of an RDP house.

Can you sell an RDP house? What does the law say?

Section 10A and 10B of the Housing Amendment Act informs you what should happen for an RDP house to change owners.

1. When an RDP house is being sold, government through the provincial housing department (COGHSTA in Limpopo) has first option right;
2. This means that before the house can go to any new owner, the house firstly is returned to be owned by the provincial govt;

3. Section 10A is for voluntary sale of the house. The act in simple terms states that the house shall return to the government and they will...
... decide whether to continue to sell it or to pass it to a new beneficiary. In fact, it's less a sale but you vacating the premises. The act uses the word "vacate".

Should the house be sold, the Act states that the money will go to the provincial government.
So in summary on Section 10A:

1. You are not selling but relinquishing ownership;

2. It's then passed back to the govt;
3. If govt decides to endorse the "sale", they will receive the purchase price as they are the owners of the house.
Section 10B talks about involuntary vacating of the premise perhaps due to credit.

Again before any alienation or transfer to new hands, the property returns to the provincial government "at a price not greater than the
subsidy which the person received for the property"
"Any such offer to the provincial housing department shall be made in writing and shall be accepted or rejected by the MEC within a period of 60 days from receipt thereof."


1. The MEC has to endorse or not;
2. A certificate must be issued to the registrar of deeds by the HOD, to the effect that such dwelling or site has been offered
for sale to the provincial department of housing to confirm whether or not permission to transfer to the new owner has been granted.

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