| (1) |
When in terms of section 17(3) of the Sectional Titles Schemes Management Act the building or buildings comprised in a scheme is or are deemed to be destroyed and the owners have resolved not to rebuild the building or buildings, the body corporate must, subject to section 17(9) of the Sectional Titles Schemes Management Act, lodge with the registrar a notification in the prescribed form of such destruction and a copy of the relevant resolution of the owners as certified by two trustees of the body corporate. |
[Section 49(1) substituted by section 20 of the Schedule of Act No. 8 of 2011]
| (2) |
Upon receipt of such notification the registrar shall make an entry thereof in the relevant sectional title register. |
| (3) |
When such entry has been made in the relevant sectional title register— |
| (a) |
the owners shall cease to be separate owners of sections but shall, subject to the provisions of section 48(2), remain co-owners of the land in undivided shares proportionate to the quotas of the respective sections previously owned by them; |
| (b) |
any sectional mortgage bond, lease or other real right or condition then registered against or affecting a unit, shall be deemed to be converted into a mortgage bond, lease or other real right or condition registered against or affecting the undivided share in the land which formed part of such unit; |
| (c) |
the land shall revert to the land register; and |
| (d) |
the sectional title deeds of units which are thus deemed to be destroyed as well as the title deeds regarding any right to an exclusive use area and any right to the extension of a scheme referred to in section 25, together with any mortgage bond over the said rights, shall be surrendered to the registrar for cancellation. |
| (4) |
Upon the reversion of the land to the land register, the registrar shall— |
| (a) |
cancel the title deeds referred to in subsection (3)(d); |
| (b) |
issue to each of the owners of a unit which is thus deemed to be destroyed a certificate of registered title in the form prescribed under the Deeds Registries Act for his undivided share in the land, subject or entitled to such servitudes, mortgage bonds, other real rights and conditions which are applicable to or in respect of such land; |
| (c) |
make suitable endorsements on any sectional mortgage bond, lease or other real right to reflect the conversion referred to in subsection (3)(b); |
| (d) |
re-register any sectional mortgage bond, lease or other real right referred to in subsection (3)(b) as a mortgage bond, lease or real right in terms of the Deeds Registries Act; |
| (e) |
make an endorsement on the schedule referred to in section 11(3)(b) to reflect the reversion of the land; and |
| (f) |
notify the Surveyor-General and the local authority of the said reversion of the land. |
[Section 49(4) substituted by section 20(b) of Act No. 63 of 1991]
| (5) |
Upon receipt of the notifications that the whole of the land has reverted to the land register, the Surveyor-General shall cancel the relevant sectional plan. |
Protection of Businesses Act, 1978
