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Common entrance to two sectional plans
Hi,
We live in a sectional scheme containing 4 units - communal wall surrounding the units with one entrance. Due to the relative small size of the scheme, we have always handled issues in an informal manner. When we aquired the unit, there was no information transferred to us regarding body corporate activity, historical minutes of AGMs and SGMs, scheme rules and sectional plans. We always knew that we all purchased a "sectional title unit", but never understood what needs to be done ito management of the scheme.
We recently began to gather all the information in order to clarify rules regarding pets, color schemes of houses and so on. Upon investigation, it became clear that there are two sectional plans registered, although the scheme has one communal entrance. Two units were built on one stand, and the other two on the adjacent stand. I assume that the stands were never consolidated, and hence the two sectional plans. These two plans are virtually identical. Prior to the change in legislation in effected in Jul 2009 (if I recall correctly) the municipality issued two statements for rates and taxes (one per stand).
1. Does this mean that two BCs need to manage one scheme? This does not sound right. Advise please.
2. One of the owners have subsequently constructed an enclosed extension to his unit (thatched lapa). Obviously, this was not approved by the BC as there was no active BC or elected trustees. The current sectional plan does not indicate this extension. What are the implications of this?
3. Even if no conduct rules were communicated to owners at transfer, should they have assumed PCRs, knowing that they have purchased a sectional title unit?
Vernon
Replies
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RE: Common entrance to two sectional plans
It would seem that you should consult a Lawyer who is skilled in Sectional Title Law to sort your situation out. It might in fact be worth it in the long run.
RE: Common entrance to two sectional plans
Hi,
On the first sheet of the sectional plan an SS number and a D number are given. Are these numbers the same?
If the SS numbers are the same on both plans the two properties comprise one sectional title scheme therefore there is only one Body Corporate.
That the sectional plan does not show the lapa is of minor concern. Do the plans show exclusive use areas? If not, one can establish EUAs under §27(A) of the STA, by a change or addition to the Management Rules. You will need a sketch plan to scale and a unanimous resolution for this....Show More
A body corporate is established from the date a person other than the developer becomes an owner of a unit in a scheme ito §36(1) and ito §35 a scheme shall as from the date of the establishment of the BC be controlled and managed by means of rules which are the Management and Conduct Rules (Annex 8 and 9 of the STA)
You'll be able to find the rules by clicking on "Browse the Libary" at the left top of this page.
RE: RE: Common entrance to two sectional plans
An EUA created as per Section 27(A) does not need to be a change to the Management Rules for which a Unanimous Resolution is necessary. This may be effected in terms of the Conduct Rules and therefore only a Special Resolution is required.
RE: RE: RE: Common entrance to two sectional plans
John,
See Chief Registar Circular no 69/2009
"(a) These rules are management rules.
(b) The rules can be amended by unanimous resolution only"
RE: RE: RE: RE: Common entrance to two sectional plans
Which Chief Registrar do you mean? High Court or Deeds. As far as I am aware this would not constitute an amendment to the Sectional Titles Act. If it is the Deeds Office they are not required to "police" any changes to either the Management or Conduct Rules. The S/T Act does not stipulate which Rule must be used for a Section 27(A) EUA. To do so would require an Act of Parliament. In any event I would be interested to see circular 69/2009.
RE: RE: RE: RE: RE: Common entrance to two sectional plans
Also read this post
http://www.sto.co.za/forum/topic/5503-Exclusions-ito-s27Aa)
RE: RE: RE: RE: RE: RE: Common entrance to two sectional plans
Interesting to note that Prof C G Van Der Merwe indicates that either the Management or Conduct Rules may be used to create a Section 27A EUA. See His Sectional Title page 11-23
RE: Common entrance to two sectional plans
All,
Thank you for the replies. Before contemplating amending the EUAs on the sectional plan, I would think that we first need to sort out the managing body corporate structure - remember that there are four units with two bodies corporate, but one common entrance and border wall....Show More
I spoke to a lawyer this morning regarding this and his advice was that the 4 owners sign an agreement that the scheme will be managed by one body corporate consisting of a trustee of each individual bodies. His feeling is that this route will be less tedious than having to correct the wrongs of the past (combining the two bodies).
I am however concerned that this "3rd" body would not carry legal authority (the law would not recognise it and still hold the individual bodies responsible).


