Advantages of Life Rights
Advantages to acquiring a property in terms of a Life Right compared to traditional forms of
ownership.
What is a Life Right?
A Life Right is a real right to occupy a specific property for the remainder of the holder’s life
and the housing interest afforded to the holder is governed and protected by the Housing
Schemes for Retired Persons Act of 1988 (“The Retired Persons Act”).
What are the advantages of a Life Right?
There are many reasons why purchasers opt for life rights instead of traditional forms of ownership and the life rights model is a widely practiced and well recognised retirement model worldwide.
Some key advantages to a Life Right include the following:
There is no transfer duty or VAT payable on a Life Right.
After the title deed has been endorsed in terms of Section 4(C) of the Retired Persons Act, it is not necessary to register with the Deeds Office every time the Life Right Holder changes.
The rights of each Life Right holder are protected.
The Retired Persons Act provides a number of prerequisites for the benefit and protection of the Life Right holder including levy transparency, restrictions of alienation and restrictions on the developer in respect of receipt of consideration.
Enjoy the privileges of ownership without stress.
Residents enjoy similar privileges to that of a sectional title owner however they are not subjected to any special levies. Faircape subsidizes the difference between the fixed levies collected by residents and the actual operational costs of running the village. Faircape remains liable for any extra capital expenditure ordinarily raised by way of special levies. This continuous investment ensures the upkeep of the village and its facilities to a high standard.
Quick registration
Due to the fact that a new Life Right Holder does not have to be registered in the Deeds Office, from the time a Life Right Agreement is signed to the time the new resident takes occupation can be a number of days provided the unit is not in need of refurbishments.
There is no need for complicated paperwork and lengthy delays that are often experienced in a sectional title transfer.
Estate planning
When the Life Right terminates the estate is refunded. The funds are received much quicker than they would be if the property was a sectional title because a sectional title transfer of a deceased estate is subject to the usual lengthy transfer process in the deeds office and furthermore requires consent from the Master of the High Court which often causes further delays.
Before a sectional title from a deceased estate can even be sold, the Master must appoint an executor who is the only person authorised to sign the sale agreement on behalf of the deceased estate.The Conveyancer then submits the Power of Attorney to pass transfer to the Master who must endorse the power of attorney in terms of Section 42(2) of the Administration of Deceased Estates Act. Life Rights, on the other hand, terminate immediately on the death of a Life Right holder and the estate is paid out as soon as a new Life Right occupies the unit which can happen quickly as no Master’s consent is required.
Cost effective
As already mentioned there is no transfer duty or VAT payable on Life Rights. Furthermore there are no conveyancing fees and registration costs are minimal in comparison to a sectional title transfer. In addition to these saved costs, there is also the advantage of transparent levies and budget forecasts allowing residents to plan ahead.
Additional benefits when retiring with Faircape
Faircape has experience in providing a successful, secure, and stress-free environment to our residents. We go the extra mile to ensure you retire with confidence.
Fixed levies
Your levies will only increase by CPI allowing you to budget your life without the stress of uncertainties.
Refurbishments
Units at all Faircape Life villages are kept in line with modern living trends and standards. This ensures that the village retains its status as luxury retirement living.
Dedicated Sales Representatives
Faircape has a dedicated team of sales representatives who will manage and drive the resale of your unit offering you and/or your family a convenient and efficient transfer process. We have a waiting list for all our villages which ensures fast and efficient turnaround times.
Professional Legal Assistance
Faircape has an in-house legal department consisting of registered Conveyancers who facilitate a quick and painless process. There are no conveyancing fees payable and our legal team will talk you through the process to ensure a stress-free transaction.
Faircape Remains Invested
As with a standard Life Rights model, the developer retains ownership of the property. This benefits you because Faircape has a vested interest and ensures that the property remains current, facilities are maintained and upgraded, and the value continues to increase.
