Ricochet News

Open spaces in Sectional Title Schemes - Will it remain undeveloped?

BY BARDINE HALL (BA LIB) - GOLDBERG & DE VILLIERS - JUNE 2, 2017
Open spaces in Sectional Title Schemes - Will it remain undeveloped?

A sectional title complex may be attractive to potential investors or buyers due to the fact that there are open spaces and common garden areas. These open spaces and areas may however be subject to the right of the developer of the scheme to build further units or facilities thereon.

Section 25 of the Sectional Titles Act makes provision for a developer of a scheme to apply to the Registrar of Deeds for the right to develop the scheme further within a specified time period.

It is therefore important for purchasers to ascertain whether the developer of the scheme has reserved such a right to develop the scheme further and if such a right exists which areas may be further developed and to what extent.

The exercise of such a right by a developer may lead to the densification of the units in existing buildings or the addition of further units and facilities.

Depending on the nature of the right reserved by the developer, new buildings may be added, new units may be added or existing buildings may be extended horizontally or vertically.

Further parking areas or other exclusive use areas for the exclusive use of specific owners may be provided. Open spaces in a scheme may therefore only be temporary and may in future be built upon.

The Sectional Titles Act provides some protection to purchasers by compelling sellers to disclose in the deed of sale whether such a right of extension exists. If a right to extend the scheme exists and it was not disclosed to the purchaser, the purchaser may elect to have the deed of sale annulled.

A developer’s right to extend the scheme is registered in the deeds office together with plans and specifications showing the proposed further development of the scheme. A Conveyancer will be able to assist you to establish whether such a right exists and the nature thereof.

For more information on the implications of such rights in a sectional title scheme, contact Goldberg & de Villiers Inc, the Directors in our Property Law Department, namely Adri Ludorf, Tracey Watson-Gill and Nicolas Mitchell, assisted by Bardine Hall will gladly assist you with any of your Property Law-related needs.

Visit www.goldbergdevilliers.co.za

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