Let’s start off by looking at: What is life right property?
The SA association of retired persons, SAARB, describes the Life Right ownership option as ‘a guaranteed right of occupation of individuals for their lifetime, whereby ownership is retained by the administering authority, and is resold after the demise of the last dying person’.
Thus, You are not buying a unit, only the right to live in a unit. It’s not an estate asset & cannot be bequeathed in a will.
Before you decide whether this is for you, consider the benefits over full or sectional title for instance:
- simplicity: it’s a rental agreement & there are no rights or benefits of ownership
- security: real right of the life right-holder will rank in priority over any other right
- return of investment (degree subject to contract provisions)
- Care: environment where appropriate care is provided
- no transfer or registration fees
- certainty for surviving spouse to carry on living there
- opportunity for social interaction
- staff on hand if help is needed
- look at transparency of increases of levies payable
- provisions relating to return of investment, e.g. Proceeds of sale, percentages of commission, percentages of profit, etc
Make use of the expertise of our experienced in-house Conveyancers and let us provide you with an overview of the best options suited to your personal circumstances.