Acts Online
GT Shield

Sectional Titles Schemes Management Act, 2011 (Act No. 8 of 2011)

17. Destruction of or damage to buildings



1) The building comprised in a scheme is, for the purpose of this Act, deemed to be destroyed—
a) upon the physical destruction of the building;
b) when the owners by unanimous resolution so determine and all holders of registered sectional mortgage bonds and the persons with registered real rights concerned, agree thereto in writing; or
c) when the Court is satisfied that, having regard to all the circumstances, it is just and equitable that the building must be considered to have been destroyed, and makes an order to that effect.


2) In any case where an order is made under subsection (1)(c), the Court may impose such conditions and give such directions as it considers fit for the purpose of adjusting the effect of the order between the body corporate and the owners and mutually among the owners, the holders of registered sectional mortgage bonds and persons with registered real rights.


a) Where the building is damaged or destroyed within the meaning of subsection (1), the owners may by unanimous resolution, or the Court may by order, authorise a scheme—
i) for the rebuilding and reinstatement in whole or in part of the building;
ii) for the transfer of the interests of owners of sections which have been wholly or partially destroyed, to other owners.
b) In the exercise of their powers under this subsection, the owners may pass such resolution as they may consider fit or the Court may make such order as it may consider necessary or expedient to give effect to the scheme, in connection with amongst other things—
i) the application of insurance moneys received by the body corporate in respect of damage to or the destruction of the building;
ii) the payment of money by or to the body corporate or by or to the owners or by or to one or more of the owners;
iii) an amendment of the sectional plan so as to include an addition to or a subtraction from the common property;
iv) the variation of the quota of any section; or
v) the imposition of conditions.


4) An application may, for the purposes of this section, be made to the Court, by the body corporate or by any owner or by any holder of a registered sectional mortgage bond or a registered lease or by any insurer of the building or buildings or any section therein, or by the local municipality.


5) Any insurer of the building or buildings or any part thereof, has the right to intervene in the proceedings on any application to the Court under this section.


a) The Court may, on the application of a body corporate or any member thereof or administrator or any holder of a registered real right concerned, or any judgment creditor, by order make provision for the winding-up of the affairs of the body corporate.
b) The Court may, by the same or any subsequent order, declare the body corporate dissolved as from a date specified in the order.


7) The Court may, with regard to any application under this section, make such order for the payment of costs as it considers fit.


8) Where two or more buildings are comprised in a scheme, and only one or part of one of the said buildings is damaged or destroyed, the provisions of this section apply, with the necessary changes required by the context, as if the said buildings were one building and part of such building has been damaged or destroyed.


9) When in terms of subsection (1) the building comprised in a scheme is considered to be destroyed and the owners have by unanimous resolution resolved not to rebuild the building, the body corporate must lodge with the registrar of deeds a notification in the form and with such supporting documents, as may be prescribed in terms of the Sectional Titles Act.