Answer to a question from a reader

Can my relative go back on a verbal agreement we made over a decade ago to give me his property?

The short answer

When it comes to property, agreements must be in writing and signed by all parties involved.

The whole question

Dear Athalie

Fourteen years ago, my uncle told me I could live in his RDP house and he would transfer ownership to me later. Although the agreement was verbal, he gave me the title deed to show that he meant what he said. The transfer never happened but we trusted him because he is family.

Now the tables have turned and he wants the house back. My family and I have been making improvements on the house, even adding an extension, and he encouraged us to do this. He could have stopped us but didn't. Is there any way that I can keep my house?

The long answer

This is a very difficult and disappointing situation. In South African law generally, verbal agreements are as binding as written and signed agreements, though obviously more difficult to prove, but when it comes to property, the agreement or promise must be in writing.

CK Attorneys explains why: “The Alienation of Land Act will apply because the Act says that ‘alienate’ in relation to land means sell, exchange or donate.” (my emphasis)

So even though you were not agreeing to buy the property, but to have it donated to you by your relative, the Alienation of Land Act says that such alienation of property (whether a sale, exchange or donation) must be recorded in writing and signed by both parties. Even though a verbal agreement may be binding in our law generally, it will not apply to property where a written and signed agreement will be necessary.

Your chances of being reimbursed for the money you spent on the renovations are also not good: Private Property says that if you were not a legally a “tenant” and for some reason the transfer of the house should fall through, you will not be able to claim compensation for any improvements made to the house. They make the example of new doors and windows that have been installed, and say that these would have to be left in place, because removing them would leave the house in a worse condition than when you moved in. 

So what can you do?

Perhaps the first thing to do is to make an affidavit recording the whole history of your relative’s promise: the dates, the entrusting of the title deed to you, the encouragement by your relative to do renovations and the dates on which such renovations were made, the costs, and the date on which you were told by your relative that he wants his house back. You should also gather any emails, WhatsApp messages or SMS between you and your relative regarding the house. 

This is so that you have all the facts at your fingertips, and you may need to present your side of the story in court if your relative wants to evict you from the house. (In terms of the Electronic Communications and Transactions Act, all electronic messages, whether an SMS, WhatsApp message, Facebook message, e-mail or fax, are considered to be written agreements between the parties, and will be accepted as evidence if presented in court.)

In South Africa, you cannot be evicted without a court order under the Prevention of Illegal Evictions and Unlawful Occupation of Land Act of 1998 (the PIE Act). If your relative goes to court for an order to evict you, he must give you a written copy of the date of the court hearing, and you must be present in court to give your side of the story. The court will only grant an eviction order if it considers it fair and just to do so. The municipality must also be present to indicate to the court whether there is emergency housing available.

If the order is granted, you will be given a date by which you must leave, and if you do not leave on that date, only the sheriff of the court has the right to evict you.

But perhaps there is also a senior family member who is respected by both you and your relative, who might be willing to convene a meeting of the family to discuss a better option, before it comes to going to court for an eviction order. This is where your affidavit, along with as many receipts for the expenses of the renovations, might come in useful. 

You could also get legal advice about how to proceed. 

You could ask Legal Aid, which is a means-tested organisation that must assist people who cannot afford a lawyer.

Here are their contact details:

  • Legal Aid Advice Line (Toll-free): 0800 110 110

  • Please-Call-Me number: 079 835 7179

You could also ask the Black Sash for free paralegal advice:

Wishing you the best,
Athalie

Answered on June 26, 2024, 11:56 a.m.

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Please note. We are not lawyers or financial advisors. We do our best to make the answers accurate, but we cannot accept any legal liability if there are errors.