We have the understanding that many of our clients have long outstanding debts which were not settled. Our government introduced the EEDBS to assist with this long outstanding increasing debt to all qualifying beneficiaries. Upon approval of the EEDBS subsidy based on the joint house hold income, your outstanding debt is written-off bringing your account to zero. Transfer documents are then prepared and submitted to the appointed conveyancers to affect transfer. The beneficiaries are not burdened with any cost as all transfer costs are settled by the Department of Human Settlements. Upon registration, the title deeds are handed out to each individual at the Human Settlements offices or at a ceremony held by the Minster (MEC).
The EEDBS is the only legal programme that the Department can implement to write off the debt according to the qualifying criteria specified in the EEDBS policy.
It is very important that you continue making payments as your lease agreement concluded with the Department stipulates that you are responsible to make monthly rental payments, failure will result your lease agreement been terminated due to non-payment of rentals. Secondly once your account is converted into a sale all outstanding arrear rentals are carried over and is added to your purchase price. This is not encouraged as it can disadvantage you if you do not qualify for the full write-off.
In order for the Department to assist, you need to provide proof of income in order to request approval of the EEDBS of R7 500 as per your income of R14000.00. Upon approval you will be required to provide the Department with proof from any financial institution declining your loan application. You will also be required to submit proof of your listing on the credit bureau and a copy of your monthly budget, confirming your financial unaffordability. Based on the merit of each case, a submission is submitted to the Head of a Department on your behalf seeking approval of a further write-off.
The family will have to decide on the appointment of an executor, and then approach the Department of Justice to obtain a letter of executorship / letter of authority. Upon receipt thereof, the executor will apply to the Department for the EEDBS on behalf of the estate late. The estate will qualify for the full 100% discount according to EEDBS criteria. After approval is obtained then the transfer documents will be processed into the name of the estate late of the deceased and surviving spouse. The family can then appoint an attorney, to sit with them to resolve the dispute and reach agreement on the property. It is important to understand that the executor cannot transfer the house into his/her name.
The Department has a brochure which stipulates the joint house hold incomes from R0 – 7001 and above.
Visit the Department with proof of your purchase (receipts, sale agreement, and affidavit). If you do not have proof of a sale agreement or receipt, you are required to submit an affidavit stating when you moved into the premises and from whom you purchased the property from. You will also need to provide a letter from the ward councillor and letters from your neighbours confirming the number of years that you have resided in the subject property. Upon completion of the investigation the Department will issue the legal tenant an opportunity to remedy their breach, failing which will result in their lease or sale agreement been terminated due to non- occupation. The Department will then cancel the lease or sale agreement with the legal tenant and substitute or formalise the current occupants if they meet qualifying criteria. The next step will be for the legal beneficiary to apply for the EEDBS based on the joint house hold income.
Certain municipalities have much more strict by-laws and require a section 18(4) certificate before the transfer. The municipality will only issue this certificate upon physical inspection of your property and if your alterations or extension do not have an approved building plan, the transfer will be put on hold until you produce building plans and get them approved or alternatively you may even be requested to demolish the extension.