Sectional Titles Amendment Act, No. 11 of 2010 was published as Notice No. 1172 in Government Gazette No. 33849 of 7 December 2010.
Pages 4 to 16 of the Notice sets out under 15 headings a total of 42 changes to the Sectional Titles Act. Some sections are deleted, the wording of many is amended and some new provisions are added.
Some issues are “technical adjustments”, such as updated descriptions, removing superfluous provisions and adding cross-references. The rest can broadly be categorized as either registration issues without any specific management implication and issues with management implications. In this article I will deal only with the issues that have management implications.
There are four management issues with financial implications:
1. Developers are no longer free to set the amount of the contribution they will make to cover the body corporate’s costs in regard to future development areas. Section 25(2)(e) has been deleted and section 37(1)(bA) has been inserted. The newly inserted provision obliges the body corporate to recover from a person who holds a future development right all the body corporate’s costs that are directly attributable to the area or areas subject to that right.
Then there are 10 non-financial management issues, some of which include a number of elements:
A. Section 1(3A) has been amended to make it clear that the fact that a proposed unanimous resolution may affect an owner’s proprietary rights is not a bar to an application to the High Court by the body corporate to obtain the resolution.
– first to make it clear that the 10% deviation threshold applies to the section being extended,
– second to provide that a land surveyor or architect rather than a conveyancer must certify the extent of the deviation where it is less than 10% and
– third to provide that where the deviation is more than 10 percent the conveyancer must give a certificate confirming that all mortgagees have consented to the registration of the sectional plan of extension.
G. Section 25(13) has been amended. The obligation of the holder of a future development right under section 25 to exercise that right strictly in accordance with the sectional plan of extension has been extended to cover not only the additional sections but also the additional exclusive use areas.
I. Section 27(4)(b) has been amended to provide that when a registered exclusive use right in terms of section 27 vests in the body corporate in terms of section 36(2) – when the holder no longer owns any units – it vests free of any mortgage bond AND free from any other form of register real right.
Article reference: Paddocks Press: Volume 5, Issue 1, Page 1
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