Flower Foundation Pretoria Homes for the Aged NPC v Registrar of Deeds, Pretoria and Others

The appellant, Flower Foundation Pretoria Homes for the Aged NPC, was the registered owner of Erf 578, Groenkloof Extension 1, over which a housing development scheme for retired persons was established in 2001 under the Housing Development Schemes for Retired Persons Act 65 of 1988. The scheme was endorsed against the title deed of the entire property. Several respondents held lifelong rights of occupation (life-rights) in units within the scheme. In 2018, the appellant sought to sell a portion of the property, including the communal hall, to a third-party developer (DIY Systems and Projects (Pty) Ltd) for mixed-use development. The appellant requested consent from life-right holders as contemplated in s 4B of the Act but obtained consent from only two holders. Despite this, it entered into a sale agreement and approached the High Court for declaratory relief that the sale did not require consent under s 4B. The High Court dismissed the application, holding that the consent of life-right holders was required. The appellant appealed to the Supreme Court of Appeal.

The appeal was dismissed with costs, including the costs of two counsel.

This case affirms the strong protective purpose of the Housing Development Schemes for Retired Persons Act and clarifies that where a housing development scheme is registered over an entire property, any alienation of a portion of that property requires compliance with s 4B. It reinforces the security of tenure and participatory rights of life-right holders and confirms that developers cannot circumvent statutory consent requirements through subdivision or narrow interpretations of occupation rights.