The Sectional Titles Amendment Bill is hereby published for general comment.
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(As introduced in the National Assembly as a section 75 Bill; Bill published in Government Gazette No.
to extend the manner in which a body corporate may acquire land for the extension of common property and to regulate the registration of land so acquired; to provide for the deletion of a proviso; to provide for the levying of special contributions by the trustees of a body corporate and the liability for payment of contributions levied; to provide for the substitution of the reference to the repealed Land Survey Act, 1927; and to provide for matters connected therewith.
I. Section 1 of the Sectional Titles Act, 1986 (Act No.
Amendment of section 156 of Act 95 of 1986, as inserted by section 10 of Act 63 of 1991 and amended by section 10 of Act 44 of 1997 2.
and no transfer or cession of a fraction only of his or her undivided share in such unit or exclusive use area and no hypothecation or lease of the whole or any fraction of his or her undivided share in such unit or right to an exclusive use area or a riqht referred to in section 25(1), shall be registered in a deeds registry, unless a certificate of registered sectional title or a certificate of real right [in the prescribed form] in respect of such undivided share is produced to the registrar.
Amendment of section 26 of Act 95 of 1986, as amended by section 16 of Act 63 of 1991 and section I9 of Act 44 of 1997 3.
"(1) A body corporate, authorized thereto in writing by all of its members, may purchase or otherwise acquire land to extend the common property and such land must be registered in the name of the body corporate."
No. 27579 39 proportion as their participation quota as reflected on the relevant sectional plan.
Amendment of section 36 of Act 95 of 1986, as amended by section 9 of Act 7 of 1992 4. Section 36 of the principal Act is hereby amended by the deletion of the proviso to subsection (2).
Amendment of section 37 of Act 95 of 1986, as amended by section 9 of Act 29 of 2003 5.
"(2) [Any] Liability for contributions levied under any provision of subsection (l), save for special contributions contemplated in subsection (2A), shall [be due and payable on] accrue from the passing of a resolution to that effect by the trustees of the body corporate, and may be recovered by the body corporate by action in any court (including any magistrate's court) of competent jurisdiction from the persons who were owners of units at the time when such resolution was passed : Provided that upon the change of ownership of a unit, the successor in title becomes liable for the pro rata payment of such contributions from the date of change of such ownership."
12A) A special contribution shall be due on the passinq of a resolution by the trustees of the body corporate levying such contribution and may be recovered bv the body corporate by action in any court (including any magistrate's court) of competent jurisdiction from the persons who were owners of units at the time when such resolution was passed.
other than contributions which arise from the approval of the estimate of income and expenditure at any annual general meetinq of a body corporate, determined as contributions to be levied upon the owners durina the ensuinci financial year.
The principal Act is hereby amended by the substitution for the expression "Land Survey Act, 1927 (Act 9 of 1927)", wherever it occurs, of the expression "Land Survey Act, 1997 (Act 8 of 1997)".
The Sectional Titles Amendment Bill, 2005 (hereinafter referred to as "the Bill"), proposes certain amendments to the Sectional Titles Act, 1986 (Act No.
1986) (hereinafter referred to as "the Act").
2.1 Clause 1 of the Bill proposes certain consequential amendments to the definitions of "Chief Surveyor-General"and "Surveyor-General"as a result of the repeal of the Land Survey Act, 1927 (Act No. 9 of 1927). It also seeks to amend the definition of "sectional mortgage bond"to align the periods for registered and unregistered leases or sub-leases.
empowers a registrar of deeds to register a sectional mortgage bond by which a unit, undivided share in a unit, land held under a sectional title deed, registered lease or sub-lease, undivided share in a unit or land, registered real right or undivided share in a unit or land, is hypothecated when a sectional title register has been opened and the sectional plan has been registered.
of the Bill proposes that this power also be extended to exclusive use areas.
of the Act grants the joint owner of a unit the right to apply to the registrar of deeds for a certificate of registered sectional title in respect of such owner's undivided share in the unit.
of the Act. It is also proposed that joint owners may either apply for a registered sectional title or a certificate of real right.
of the Act empowers the body corporate to purchase land to extend the common property.
of the Bill seeks to empower the body corporate to also acquire land otherwise, for example, by donation, exchange or bequest.
must be registered in the name of the body corporate.
of the Act.
of the Act disqualifies a developer or the owner of a unit in a scheme to be a member of a body corporate, if the developer ceases to have a share in the common property and the owner ceases to be the owner of a unit. The proviso contradicts the preceeding provisions and also creates legal uncertainty pertaining to membership of the body corporate. It is, therefore, proposed that the proviso be deleted.
Section 37 of the Act provides for the levying of contributions.
levies accrue from the passing of a resolution by the trustees of the body corporate and the persons who were owners of units at the time the resolution was passed, are liable for the payment thereof.
of the Bill, seeks to give clarity on the question pertaining to the payment of levies in cases where ownership changes.
Section 37 of the Act does not specifically provide for the levying of al contributions. Over the years the levying of special contributions or specific special purposes has become a general phenomenon.
of the Bill, merely confirms a situation which has existed for a considerable number of years.
The proposal in clause 6 of the Bill seeks to rectify the present legal situation.
Clause 7 of the Bill contains the short title.
There are no known constitutional implications.
To be undertaken by the Department of Land Affairs.
The State Law Advisers and the Department of Land Affairs are of the opinion that this Bill must be dealt with in accordance with the procedure established by section 75 of the Constitution since it contains no provision to which the procedure set out in section 74 or section 76 of the Constitution applies.