The Housing Development Schemes for Retired Persons Act 65 of 1988 introduced life rights as a formal form of ownership for retired people in South Africa. This legislation was implemented not only in response to the growth in the retirement village sector but also to provide legal protection to the elderly.
What are the benefits?
While more conventional forms of ownership like sectional title are still available to retirees, life right schemes have become an attractive option as they offer the following benefits:
There are also some disadvantages for retirees to consider:
Does the Property Practitioners Act (PPA) apply?
Yes, the PPA applies in the same way it applies to any sale or lease. The retirement village consultant, broker or agent is included in the definition of "property practitioner" and will therefore be held accountable in terms of the PPA, if necessary. A life right holder in a retirement village will also have access to the Community Schemes Ombud Service. It's important to remember that a life right scheme is a typical community scheme, and is defined as such in the Housing Development Schemes for Retired Persons Act 65 of 1988.