The City of Cape Town is investigating allegations of fraudulent housing sales in the Lourensia Park Housing Project in Somerset West. Residents and property listings have raised concerns about the sale of homes within the project, which has led to the City launching a probe into the matter.
“The City is aware of instances where Breaking New Ground (BNG) homes at City housing projects have been illegally sold and investigates these cases when they occur,” said a City spokesperson. “We urge residents to report these illegal property sales to us as soon as possible.”
The City has emphasised the importance of adhering to strict regulations regarding the sale of BNG homes.
“A recipient of a BNG house must keep the house for at least eight years before it can be sold,” the spokesperson explained. “During the first eight years, permission to sell must be requested from the Western Cape Government Department of Human Settlements.”
The City has warned that illegal housing sales can have serious consequences for both buyers and sellers. If a beneficiary sells their home before the eight-year period without proper authorisation, they may face legal action.
“The sales would not be legal if it is within the restrictive period of eight years, and this negatively impacts the seller and the buyer,” the spokesperson said.
In the event of a beneficiary’s passing, their heirs can inherit the property. However, the eight-year restriction still applies. The City encourages beneficiaries to include their properties in their wills to safeguard the interests of their loved ones.
“The beneficiary is the owner and must ensure the security of their asset for their loved ones by including it in their will,” the spokesperson advised.
