EXPLAINER: How a person can keep living on a property after it is sold

Ronnie’s Sex Shop along Route 62 in Cape Town is up for sale, but the owner, Ronnie Price, intends to continue living on the property after it is sold.

The shop was opened as a farm stall in the 1970s but gained unexpected fame when a group of friends playfully added the word 'Sex' in red paint to the 'Ronnie’s Shop' sign.

The reason 76-year-old Price could be allowed to stay on the property is due to a 'usufruct', which is a legal right to use a person’s property for a period, often for life.

The owner of the property can choose how long the usufruct is in effect, and the portion of the property it affects.

Linda Jordaan of Herold Gie Attorneys says this can benefit the owner of the property as it will reduce their transfer duty payment.

“The bare ownership of the property is valued separately from the usufruct right, so there is a bit of a saving,” she explains.

This differs slightly from a 'life right', which is typically used in retirement villages where an older person, 50 years or older, has a right to remain in the home.

To listen to Jordaan in conversation with Lester Kiewit on CapeTalk’s Good Morning Cape Town, use the audio player below: