Kuzwayo v Estate of the Late Masilela

In 1985 the appellant, Ms Kuzwayo, was granted a site permit for Erf 2000 Vosloorus but failed to pay site rent and, in 1987, relinquished the site to the local authority. The site was then allocated to Mr Mbongeni Jonas Masilela, who paid all required amounts, built a house, and occupied it with his family until his death in 2000. His family continued occupation thereafter. In 2004, without any inquiry as required by the Conversion of Certain Rights into Leasehold or Ownership Act 81 of 1988, the Gauteng Department of Housing erroneously declared Kuzwayo the owner and transferred the property to her. The Masilela estate discovered the error when municipal accounts were sent in Kuzwayo’s name and applied to court for cancellation of the deed.

The appeal was dismissed with costs. The Registrar of Deeds was ordered to cancel the title deed issued to Kuzwayo. The Director-General for Housing, Gauteng, was directed to conduct an inquiry under s 2 of the Conversion Act and to declare the holder of the valid site permit the owner.

The case clarifies that ownership under the Conversion Act can only follow a proper statutory inquiry, affirms the court’s inherent power to rectify the deeds register, and distinguishes between reviewable administrative decisions and mere clerical acts. It also protects long-term occupiers against bureaucratic errors.