It is illegal for the recipient of a subsidy house, now referred to as BNG house, to sell the house before they have lived in it for a minimum period of eight (8) years.
Yet, experience shows that in many instances the houses are used to make quick money by unscrupulous individuals who sell them within the 8 year period.
Alternatively recipients rent out the houses to be used as business premises, while the beneficiaries return to live in informal settlements.
While the minimum occupancy period may be adjusted from time to time, the current limitation is 8 years and, within this period a beneficiary may only re-sell the property back to the relevant Provincial Department of Human Settlements. This type of Voluntary sale occurs when a beneficiary, for whatever reasons, chooses not keep the subsidy house.