Section 10A of the above mentioned Act is a pre-emptive right that is contained in the title deed, which prohibits the selling or alienating of your property within a period of eight years from the date of transfer, unless it has first been offered to the relevant Provincial Housing Department.

Example of the clause that is usually contained in the Title deed

“In terms of section 10A of Act No.107 of 1997 the within mentioned property is subject to the condition that it shall not, without the consent of the relevant provincial housing department, be sold or otherwise alienated within a period of eight years, unless it has first been offered to the relevant provincial housing department”.

In Abdul v Williams and Others (CA227/2018), the Honourable Judge E Revelas, said the following in paragraph 29 of his judgement:

“The evidence in this matter suggests that possibly many lay persons and attorneys are not aware of, or choose to ignore the provisions of section 10A of the Housing Act. It is necessary to urge the Eastern Cape Legal Practice Provincial Council to discourage its members from assisting persons to conclude agreements contrary to, and designed to circumvent the prescripts of the Housing Act. All provincial offices of the Legal Practice Council in the country should endeavor to make legal practitioners, and in particular conveyancing attorneys, aware of the predicaments that can befall their clients who wish to sell and lease properties in contravention of section 10A of the Housing Act. ”

In order for you to be able to sell, donate or exchange the property free from the pre-emptive right, you must ensure that the eight year period has lapsed; or you must obtain consent from the relevant housing department.

My own emphasis

Contravention of this clause defeats the whole purpose of what the Reconstruction and Development Programme was intended for.

References

The Chief registrar’s circular no 13 of 2005, Abdul v Williams and Others , Section 10A of the Housing Act , 1997.