Section 20: Exercise of right of pre-emption

20. Exercise of right of pre-emption (1) Subject to subsection (6), the Receiver may, where he is dissatisfied with the value stated in the deed of transfer, exercise on behalf of the State, within a period not exceeding 6 months from the date of registration of the deed of transfer, the right of pre-emption conferred on the State under section 19 by reimbursing to the transferee the amount payable. (2) The exercise of a right of pre-emption shall be notified to the transferee by notice served by an usher of the Supreme Court and no fee or duty shall be chargeable in respect of the service. (3) The Receiver shall, in the notice served under subsection (2), call on the transferee to collect, within 30 days from the date of the notice, the amount payable. (4) Where the Receiver exercises a right of pre-emption in respect of any immovable property, he shall draw up a memorandum which, on registration and transcription, shall constitute a valid title for the State in respect of the immovable property. (5) The memorandum under subsection (4) shall be exempt from any fee or duty. (6) Where a transferee to whom a notice has been served under subsection (2) fails to collect the amount payable within the delay specified in subsection (3), the amount payable shall be deposited at the Registry. (7) Where an immovable property in respect of which a right of preemption has been exercised is burdened with a privilege, charge or mortgage, the amount payable shall be deposited at the Registry. (8) Any sum required for the purposes of this section shall be paid out of the Consolidated Fund. [S. 20 amended by Act 48 of 1991; s. 27 (13) (b) of Act 33 of 2004 w.e.f. 1 July 2006; s. 4 (k) of Act 4 of 2006 w.e.f. 2 October 2004.]