Sectional Titles Act, 1986 (Act No. 95 of 1986)

Part VII : Participation Quotas and Developers

32. Participation quotas

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(1)Subject to the provisions of section 48, in the case of a scheme for residential purposes only as defined in any applicable operative town planning scheme, statutory plan or conditions subject to which a development was approved in terms of any law, the participation quota of a section shall be a percentage expressed to four decimal places, and arrived at by dividing the floor area, correct to the nearest square metre, of the section by the floor area, correct to the nearest square metre, of all the sections in the building or buildings comprised in the scheme.

 

(2)Subject to the provisions of section 48, in the case of a scheme other than a scheme referred to in subsection (1), the participation quota of a section shall be a percentage expressed to four decimal places, as determined by the developer: Provided that—
(a)where a scheme is partly residential as defined in any applicable operative town planning scheme, statutory plan or conditions subject to which a development was approved in terms of any law, the total of the quotas allocated by the developer to the residential sections shall be divided among them in proportion to a calculation of their quotas made in terms of subsection (1);
(b)where a developer alienates a unit in such a scheme before the sectional title register is opened, the total of the quotas allocated to the respective sections and the participation quota of that unit must be disclosed in the deed of alienation; and
(c)where such disclosure is not made, the deed of alienation shall be voidable at the option of the purchaser and that the provisions of section 25(15)(b) shall mutatis mutandis apply in respect of any such alienation.

 

(3)Subject to the provisions of subsection (4) of this section, the quota of a section shall determine—
(a)the value of the vote of the owner of the section, in any case where the vote is to be reckoned in value;
(b)the undivided share in the common property of the owner of the section; and
(c)subject to the provisions of section 37(1)(b), the proportion in which the owner of the section shall make contributions for the purposes of section 37(1)(a), or may in terms of section 47(1) be held liable for the payment of a judgment debt of the body corporate of which he is a member.

 

(4)Subject to the provisions of section 37(1)(b), the developer may, when submitting an application for the opening of a sectional title register, or the members of the body corporate may by special resolution, make rules under section 35 by which a different value is attached to the vote of the owner of any section, or the liability of the owner of any section to make contributions for the purposes of section 37(1)(a) or 47(1) is modified: Provided that where an owner is adversely affected by such a decision of the body corporate, his written consent must be obtained: Provided further that no such change may be made by a special resolution of the body corporate until such time as there are owners, other than the developer, of at least 30 percent of the units in the scheme: Provided further that, in the case where the developer alienates a unit before submitting an application for the opening of a sectional title register, no exercise of power to make a change conferred on the developer by this subsection shall be valid unless the intended change is disclosed in the deed of alienation in question.

 

(5)The specification in the schedule to a sectional plan of the quota of each section and of the total of the quotas of all the sections in the building or buildings comprised in a scheme, shall for all purposes be deemed to be correct in the absence of proof to the contrary.