• Mar 11, 2024
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It is very possible for a minor child, represented by or with the assistance of their parents or guardians to purchase immovable property (land and/or a house) and have it registered in their name(s). The law does not prohibit registering immovable property in the name of one or more minor children. Minor children (aged 7 and under), have no contractual capacity therefore they cannot enter into legally binding contracts alone. This means that both parents or the legal guardian must represent the minor child and sign the transfer documents on their behalf. Minors between the age of 7 years to 18 years have limited capacity to act and they need a parent or a guardian to assist them in concluding contracts and other legal matters. These minors can sign the transfer documents with their parents’ assistance or alternatively the parents can sign the contract on behalf of the minor.

Disposing the property belonging to a minor child/children

If the minor’s immovable property needs to be sold, there are legal repercussions. Natural guardians are not permitted to alienate or mortgage any immovable property that belongs to their minor child unless the High Court or the Master of the High Court grants them permission in accordance with Section 80 (1) of the Administration of Estates Act 66 of 1965. The Act also forbids a tutor or curator who has been nominated by a will or other written document from alienating or mortgage any immovable property belonging to the minor child/children that he has been assigned to oversee. Section 80 (2) of the Act further stipulates that the Master has the authority to allow such alienation or mortgaging, if the property value doesn’t exceed R250 000.00 (Two Hundred and Fifty Thousand Rand), according to the current gazetted amount. The alienation should also be in the interest of the minor child or to a person for the administration of whose property a tutor or curator has been appointed. A High Court order is necessary if the property value is more than R250 000.00 (Two Hundred and Fifty Thousand Rand). The High Court is there to uphold the rights of minors, and the minor will always come first in all decisions the High Court make. In order to sell the property, you as the parent must give the High Court a compelling cause (or reasons) for doing so. You must also explain to the court how the proceeds of the sale will be invested and how doing so will benefit your minor child/children. The Master or the High Court will not grant authorization unless it convinced that the alienation or mortgaging of the property belonging to the minor child is in the interests of the minor. Should you not be interested in going the High Court route, we encourage that you set up a trust for the minor child/children.