TITLE DEED CONDITION ALLOWING RE-TRANSFER OF PROPERTY IF OWNER DOES NOT BUILD ON TIME: CAN THIS REVERSIONARY RIGHT PRESCRIBE?
eThekwini Municipality v Mounthaven (Pty) Ltd (CCT 05/18)  ZACC 43 (31 October 2018))
Municipalities regularly sell vacant property to developers for commercial and residential development. Often a title deed condition is imposed that the property must be improved within a certain time period and, if this is not done, then the municipality may claim re-transfer of the property back to itself. This reversionary right, the Constitutional Court confirmed here, is a personal right which is susceptible to prescription after three years.
STBB’s STSMA REFERENCE GUIDE
In this, the fifty-ninth set of notes for your STSMA Reference Guide, Prescribed Conduct Rule 7 is discussed.
Prescribed Conduct Rule 7
(N.B. Print in landscape)