| (1) | A developer shall subject to subsection (5), not offer for sale or sell any unit in that building which is occupied by a lessee who was entitled to be notified in terms of section 4(3)(a)(i), to any person other than such lessee, unless the developer has, by letter delivered either personally or by registered post, offered the unit for sale to the lessee and the lessee has refused the offer within a period of 90 days or, in the case of a unit which is controlled premises referred to in the Rent Control Act, 1976 (Act No. 80 of 1976), and is subject to the provisions of that Act, within a period of 365 days, of the date of the offer, or has, on the expiration of any such applicable period, not accepted the offer. |
| (2) | If a lessee refuses an offer referred to in subsection (1) within the applicable period mentioned therein, or has at the expiration of such applicable period not accepted the offer, the developer shall not, within a period of 180 days from the date on which the lessee has refused the offer, or on which such applicable period has expired, as the case may be, offer for sale or sell the relevant unit to any person other than the lessee concerned at a price lower than the price at which it was offered for sale in terms of subsection (1) to the lessee, unless the developer has again offered the unit at that lower price for sale to the lessee and he has refused the offer within a period of 60 days from the date thereof, or has on the expiration of that period not accepted the offer. |
| (a) | shall as from the date on which a lessee has been notified in terms of section 4(3)(a)(i) by the developer of the meeting referred to in that section— |
| (i) | subject to subparagraph (ii), as long as the lessee continues to occupy the relevant unit and to comply with the conditions of the relevant lease; or |
| (ii) | after the unit has been offered for sale in accordance with subsection (1) to the lessee and the lessee has refused the offer or the relevant period referred to in subsection (1) has expired, as the case may be, until the date of expiry of the applicable period of 180 days referred to in subsection (2) or, where applicable, the period of 60 days referred to in the last-mentioned subsection, whichever date occurs last, |
not require the lessee concerned to vacate the unit unless the lessee has been guilty of non-payment of rent, or has inflicted material damage to the unit, or has been guilty of conduct which is a nuisance to occupiers of other units in the building concerned; and
| (b) | shall in any case contemplated in paragraph (a)(ii), until the date of expiry of the applicable period of 180 days mentioned therein or, where applicable, the period of 60 days mentioned in that paragraph, whichever date occurs last, not require or permit the lessee to pay an amount of rent higher than the amount which was payable by the lessee on the date contemplated in subsection (1) on which the lessee refused the offer referred to in that subsection, or on which the relevant period referred to in that subsection expired, as the case may be: |
Provided that the foregoing provisions of this subsection shall not derogate from any applicable provision of the Rent Control Act, 1976 (Act No. 80 of 1976).
| (4) | If any unit referred to in subsection (1) is controlled premises as contemplated therein and the lessee is 65 years old or older and his monthly income does not exceed the maximum amount of income from time to time mentioned in any proclamation issued under section 52(1) of the Rent Control Act, 1976 (Act No. 80 of 1976), for lessees of premises in respect of which rent control is in terms of that section established by such proclamation, such unit may as long as such lessee continues to occupy the unit and his income does not exceed such maximum amount, only be offered for sale or sold to that lessee or in the case of any other person only be offered for sale or sold to that person subject to the provisions of subsection (1) and the right of that lessee to continue to occupy that unit for as long as his income does not exceed such maximum amount. |
[Section 10(4) substituted by section 2 of Act No. 7 of 1992]
| (a) | Any contract of purchase and sale concluded contrary to the provisions of subsection (1), (2) or (4) shall be void. |
| (b) | A developer or any person who has performed partially or fully in terms of a contract which is void by virtue of this subsection shall have a claim against the other party to the extent of such performance. |
| (c) | A developer may in addition claim from any such person— |
| (i) | reasonable compensation for the use which the person may have had of the building and land in question or any part thereof; and |
| (ii) | compensation for any damage caused to that building or land or any part thereof by the person, or any other person for whose acts or omissions such person is delictually liable. |
| (d) | A person to whom an option has been granted or a purchaser may in addition claim from a developer— |
| (i) | interest at the prescribed rate on any payment made in terms of the contract, from the date of payment to the date of recovery thereof; |
| (ii) | reasonable compensation for any expenses incurred by him or her with or without the authority of the developer for the preservation of the building or land, or part thereof, or in respect of any improvements which enhance the market value thereof and which were effected by him or her with the express or implied consent of the developer; and |
| (iii) | compensation for any damage or loss suffered by him or her which he or she would otherwise have been entitled to claim from the developer on the ground of breach of contract had the contract not been void and had the developer failed to effect any transfer in accordance with the contract. |
[Section 10(5) substituted by section 6(b) of Act No. 44 of 1997]
| (a) | commits an act which, were it not for the provisions of subsection (5), would have constituted the sale of a unit contrary to any provision of subsection (1), (2) or (4); |
| (b) | contravenes any provision of subsection (3), |
shall be guilty of an offence, and liable on conviction to a fine not exceeding R2 000 or to imprisonment for a period not exceeding twelve months or to both such fine and such imprisonment.
