How to legally purchase or sell an RDP house

The Reconstruction and Development Programme (RDP) in South Africa was established in 1994 with a primary objective of fostering social and economic growth by providing affordable housing options for underprivileged individuals.

Purpose of RDP Homes

RDP homes serve as essential housing solutions for those in need, offering affordable options to improve living conditions and promote socioeconomic development.

Initiating the Buying or Selling Process

To legally purchase or sell an RDP home, it is imperative to adhere to specific regulations and guidelines set forth by government authorities.

Engage with Relevant Government Departments

Contact your local municipality and the Housing Department to initiate the process. These departments oversee the administration, allocation, and management of RDP homes.

Comprehensive Information Gathering

Gather information on eligibility criteria, application procedures, and potential subsidies or incentives available for both buyers and sellers.

Legal Requirements for Selling or Transferring RDP Homes

Several legal steps must be followed when selling or transferring ownership of an RDP home.

  1. Check Ownership Status
    • Confirm legal ownership with the relevant Housing Department or the Deeds Office.
  2. Obtain Consent
    • Obtain written consent from the municipality, confirming residency in the RDP home for at least eight years.
  3. Valuation and Pricing
    • Determine fair market value through professional evaluation or comparison with similar properties.
  4. Sales Agreement
    • Enter into a legally binding sales agreement outlining terms, conditions, and purchase details.
  5. Transfer Duty and Taxes
    • Understand transfer duty tax responsibilities for the buyer and settle municipality rates and taxes as the seller.
  6. Transfer Process
    • Engage a conveyancing attorney to oversee legal transfer, including drafting documents and registering ownership.
  7. Compliance with Regulations
    • Ensure compliance with specific regulations for RDP homes, such as resale or occupancy restrictions.

Additional Considerations for Sellers

Selling Prior to Eight-Year Period

  • Inform the housing authority and offer them the first right of refusal if selling before eight years of residency.

Legal Documentation and Procedures

  • Complete all legal documents and procedures with the assistance of legal professionals to ensure compliance and resolution of any property issues.

Importance of Conveyancers

  • Engage qualified conveyancers specializing in property transactions to address legal aspects thoroughly.


Navigating the legalities of buying and selling RDP homes requires a meticulous understanding of regulations and procedures set by housing authorities. By following proper protocols and seeking professional guidance, individuals can ensure a smooth and lawful transaction, promoting accessibility to affordable housing options in South Africa.

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