In South Africa, it’s perfectly legal to register a property in a minor child’s name. This often happens through inheritance, or where parents want to plan for their child’s future. But things get more complicated when it comes time to sell that property.
Since children under the age of 18 are not legally allowed to enter into contracts without help from their guardian, they also can’t sell a property on their own – even if they are the registered owner.
To protect a child’s interests, the law requires that any sale of property registered in a minor’s name must first be approved by the Master of the High Court or the High Court. This requirement comes from Section 80 of the Administration of Estates Act.
In terms of the Children’s Act, anyone under the age of 18 is considered a minor and doesn’t have full legal capacity. That means they can’t sign contracts – like a sale agreement or transfer documents – unless assisted by a parent or legal guardian.
But selling a property is a big decision, and the law adds an extra layer of protection. Even with a guardian involved, the sale of a minor’s property must be approved to make sure the child’s best interests are looked after.
SECTION 80: THE LEGAL REQUIREMENT
In simple terms, this means a parent or guardian can’t sell or mortgage a property that belongs to a child unless they get permission – either from the Master of the High Court or the High Court, depending on the value of the property.
The court (or the Master) will only approve the sale if it can be shown that it’s in the best interest of the child.
The guardian will need to provide:
CONCLUSION
Registering property in a minor’s name might seem like a smart move – and in many cases, it is. But if you ever plan to sell that property before the child turns 18, you’ll need to follow the correct legal steps under Section 80.
If you’re thinking about buying or selling property involving a minor, speak to our team today to avoid delays or complications later in the process.
