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

Schedule

Amendment of the Sectional Titles Act, 1986 (Act No 95 of 1986)

 

 

Section 19

 

No. and Year of Act

Short title

Extent of repeal or· amendment

Act No. 95 of 1986

Sectional Titles Act,1986

1. Substitution for the long title of the following long title:

"To provide for the division of buildings into sections and common property and for the acquisition of separate ownership in sections coupled with joint ownership in common property; the control of certain incidents attaching to separate ownership in sections and joint ownership in common property; the transfer of ownership of sections and the registration of sectional mortgage bonds over; and real rights in, sections; the conferring and registration of rights in, and the disposal of, common property;

[the establishment of bodies corporate to control common property and for that purpose to apply rules;] and the establishment of a sectional titles regulation board; and to provide for incidental matters.".



2. The amendment of section 1-

(a) by the substitution for the definition of "body corporate" of the following definition:

" 'body corporate’ means the body corporate as defined in the Sectional Titles Schemes Management Act;";

(b) by the insertion after the definition of "building" of the following definition:

"'chief ombud' means the chief ombud as defined in the Community Schemes Ombud Service Act, 2011;";

(c) by the substitution for paragraph (b) of the definition of "developer" of the following paragraph:

"(b) for the purposes of rebuilding any building that is deemed to have been destroyed, as contemplated in section (48] 17 of the Sectional Titles Schemes Management Act, the body corporate concerned.";

(d) by the substitution for the definition of

"rules of the following definition:

" 'rules' means rules as defined

in section 1 of the Sectional Titles

Schemes Management Act;";

(e) by the insertion after the definition of "sectional title register" the following definition:

"Sectional Titles Schemes Management Act" means the Sectional Titles Schemes Management Act 2010;"; and

(f) by the repeal of-

(i) subsection (2);

(ii) subsection (3); and

(iii) subsection (3A).



3. The amendment of section 11 by the substitution in subsection (3) for paragraph (e) of the following paragraph:

"(e) a certificate by [a conveyancer] the Chief Ombud stating that the rules (prescribed in terms of section 35(2)] contemplated in section 10 of the Sectional Titles Schemes Management Act [are applicable, and containing the other rules (if any) substituted by the developer for those rules as contemplated in that section] have been approved;".



4. The amendment of section 15B-

(a) by the substitution in subsection (3)(a) for subparagraph (i)(aa) of the following subparagraph:

"(i) (aa) if a body corporate is deemed to be established in terms of section [36(1)] 2(1) of the Sectional Titles Schemes Management Act, that body corporate has certified that all moneys due to the body corporate by the transferor in respect of the said unit have been paid, or that provision has been made to the satisfaction of the body corporate for the payment thereof; or"; and

(b) by the substitution in subsection (3)(b) for subparagraph (ii) of the following subparagraph:

"(ii) the transfer will result in the establishment of a body corporate in terms of section [36] 2 of the Sectional Titles Schemes Management Act.".



5. The amendment of section 17-

(a) by the substitution for subsection (1) of the following subsection:

"(1) The owners and holders of a right of extension contemplated in section 25 may [by unanimous resolution), if authorised in terms of section 5(1)(a) of the Sectional Titles Schemes Management Act direct the body corporate on their behalf to alienate common property or any part thereof, or to let common property or any part thereof under a lease, and thereupon the body corporate shall notwithstanding any provisions of section 20 of the Deeds Registries Act, but subject to compliance with any law relating to the subdivision of land or to the letting of a part of land, as the case may be, have power to deal with such common property or such part thereof in accordance with the direction, and to execute any deed required for the purpose:

Provided that if the whole of the right referred to in section 25 or section 60(1)(b) is affected by the alienation of common property, such right shall be cancelled by the registrar with the consent of the holder thereof on submission of the title to the right."; and

(b) by the substitution for subsection (2) of the following subsection:

"(2) Any transaction [in pursuance of a resolution] referred to in subsection (1) shall be accompanied by a copy of the [relevant resolution] authorisation concerned, certified by two trustees of the body corporate: Provided that where the transaction in question requires to be notarially executed, such [resolution] authorisation so certified shall be produced to the notary public concerned and be retained by him or her in his or her protocol.".



6. The amendment of section 19-

(a) by the repeal of subsections (1) and (2); and

(b) by the substitution for subsection (3) of the following subsection:

"(3) The provisions of section 17(3)(a) and (b) of this Act and sections 31(4) and 32(4) of the Deeds Registries Act shall apply mutatis mutandis to a transfer pursuant to an expropriation of land or a servitude or other real right in land comprising common property as contemplated in section 12 of the Sectional Titles Schemes Management Act.".



7. The amendment of section 21 by the substitution for subsection (1) of the following subsection:

"(1) If an owner of a section proposes to subdivide his or her section or to consolidate two or more sections registered in his or her name, he or she shall [with the consent of the trustees of the body corporate, which consent shall not unreasonably be withheld) if authorised in terms of section 7(2) of the Sectional Titles Schemes Management Act, cause the land surveyor or architect concerned to submit the draft sectional plan of subdivision or consolidation, as the case may be, to the Surveyor-General for approval.".



8. Amendment of section 24 by the substitution for subsection (3) of the following subsection:

"(3) If an owner of a section proposes to extend the boundaries or floor area of his or her section, he or she shall [with the approval of the body corporate authorised by a special resolution of its members] if authorised in terms of section 5(1)(h) of the Sectional Titles Schemes Management Act, cause the land surveyor or architect concerned to submit a draft sectional plan of the extension to the Surveyor-General for approval.".



9. The amendment of section 25-

(a) by the repeal of subsection (3);

(b) by the substitution in subsection (5A) for paragraph (b) of the following paragraph:

"(b) If the developer or his or her successor in title fails to take such steps and fails to register the relevant plan of extension within 90 days of completion for occupation of the unit, the developer or his or her successor in title shall be liable to the body corporate for the amounts payable in terms of section [37(1)] 3(1)(b) of the Sectional Titles Schemes Management Act as if the unit has been included in the relevant sectional title register on the date of completion.";

(c) by the substitution for subsection (6) of the following subsection:

"(6) If no reservation was made by a developer in terms of subsection (1 ), or if such a reservation was made and for any reason has lapsed, the right to extend a scheme including the land contemplated in section 26, shall vest in the body corporate, which shall be entitled, subject to this section, section 5(1)(b) of the Sectional Titles Schemes Management Act and after compliance, with the necessary changes, with the requirements of paragraphs (a), (b), (c), (d) and (g) of subsection (2), to obtain a certificate of real right in the prescribed form in respect thereof [: Provided that the body corporate shall only exercise or alienate or transfer such right with the written consent of all the members of the body corporate as well as with the written consent of the mot1gagee of each unit in the scheme: Provided further· that a member or mortgagee shall not withhold such approval without good cause in law]. " ; and

(d) by the substitution for subsection (6A) of the following subsection:

"(6A) If no reservation has been made by a developer in terms of subsection (1) and the body corporate has not yet been established in terms of section 2(1) of the Sectional Titles Schemes Management Act, the registrar may issue a certificate of real right of extension as contemplated in section 12(1)(e) on application by the developer accompanied by the sectional mortgage bond and the written consent of any bondholder and such of the documents contemplated in subsection (2) as are applicable.".



10. The amendment of section 26-

(a) by the repeal of subsection (1 ); and

(b) by the substitution for subsection (2) of the following subsection:

"(2) Land purchased or otherwise acquired by [and registered in the name of a] the body corporate in terms of [subsection (1)] section 5(1)(d) of the Sectional Titles Schemes Management Act shall be deemed to be owned by the owners of the sections in the building concerned in the same proportion as their participation quota as reflected on the relevant sectional plan.".



11. The amendment of section 27-

(a) by the substitution in subsection (1) for paragraph (c) of the following paragraph:

"(c) If a developer ceases to be a member of the body corporate as contemplated in section [36(2)] 2(2) of the Sectional Titles Schemes Management Act, any right to an exclusive use area still registered in his or her name vests in the body corporate free from any mortgage bond.";

(b) by the substitution for subsection (1A) of the following subsection:

"(1A) [Notwithstanding section 27(1)(a), if] If no reservation was made by a developer in terms of subsection (1) and the body corporate has not yet been established in terms of section 2(1) of the Sectional Titles Schemes Management Act, the registrar may issue a certificate of real right in respect of a right of exclusive use as contemplated in section 12(1)(f) on application by the developer accompanied by the sectional mortgage bond and the written consent of any bondholder.";

(c) by the substitution for subsection (2) of the following subsection:

"(2) A body corporate [duly authorized thereto by a unanimous resolution of its members,] may, subject to the provisions of section 5(1) of this Act and section 5(1)(d) of the Sectional Titles Schemes Management Act), request an architect or land surveyor to apply to the Surveyor-General for the delineation on a. sectional plan in the manner prescribed of a part or parts of the common property in terms of section 5(3)(f) for the exclusive use by the owner or owners of one or more sections: Provided that no such delineation shall be made on the sectional plan in terms of this subsection if such delineation will encroach upon a prior delineation on the sectional plan of a part of the common property for the exclusive use by one or more of the owners.";

(d) by the substitution for subsection (3) of the following subsection:

"(3) [The body corporate, duly authorised thereto by a unanimous resolution of its members, shall transfer the] A right to the exclusive use of a part or parts of the common property delineated on the sectional plan in terms of subsection (2) shall be transferred to the owner or owners on whom such right has been conferred by the body corporate by the registration of a notarial deed entered into by the parties and in which the body corporate shall represent the owners of all the sections as transferor."; and

(e) by the substitution in subsection (4) for paragraph (b) of the following paragraph:

"(b) If an owner ceases to be a member of the body corporate [as contemplated in section 36(2),] in terms of section 2(3) of the Sectional Titles Schemes Management Act, any right to an exclusive use area still registered in his or her name vests in the body corporate free from any mortgage bond.".



12. Repeal of section 27A.



13. The amendment of section 29 by the substitution in subsection (1) for the words preceding paragraph (a) of the following words:

.. The owners may [by special resolution], if duly authorised in terms of section 5(1)(g) the Sectional Titles Schemes Management Act, direct the body corporate-".



14. The substitution for section 31 of the following section:

"Deeds Registries Act and implied servitudes

31. The provisions of the Deeds Registries Act shall not apply with reference to servitudes or restrictions as to user implied under this Act, and such servitudes and restrictions shall take effect and be enforceable immediately upon the establishment of the body corporate in terms of the Sectional Titles Schemes Management Act.".



15. The amendment of section 32-

(a) by the substitution for subsection (3) of the following subsection:

"(3) The quota of a section shall determine the undivided share in the common property of owner of the section."; and

(b) by the repeal of subsection (4).



16. The amendment of section 34 by the substitution in subsection (4) for paragraph

(b) of the following paragraph:

"(b) there is produced to the registrar a certificate by a conveyancer confining that, if a body corporate is deemed to have been established in terms of section [36(1)] 2(1) of the Sectional Titles Schemes Management Act, that body corporate has certified that all moneys due to the body corporate by the transferor in respect of the units concerned have been paid or provision for the payment thereof has been made to the satisfaction of the body corporate.".



17. Repeal of section 35.



18. Amendment of section 3~

(a) by the substitution for subsections (1), (2) and (3) of the following subsections:

"(1) When a unit is registered in the name of any person other than the developer, the registrar must issue a certificate in the prescribed form.

(2) The effect of the registration referred to in subsection (1) is the establishment of a body corporate for the scheme, in terms of the Sectional Titles Schemes Management Act.

(3) The registrar must lodge a copy of the certificate referred to in subsection (1)with the chief ombud."; and

(b) by the repeal of subsections ( 4) to (7).



19. Repeal of sections 37 to 48.



20. The amendment of section 49 by the substitution (1) of the following subsection:

"(1) When in terms of section [48] 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 [by unanimous resolution] resolved not to rebuild the building or buildings, the body corporate [shall] 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.";



21. Repeal of section 51.



22. The amendment of section 55 by the repeal of paragraph (k).



23. The amendment of section 60 by the repeal of subsections (4) to (8).



24. The amendment of section 60A by the repeal of subsections (4) to (8).