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St amendment - landgrab - eua

By tee lamprecht on Wed, 07 Mar 2012 at 14:12

EXACTLY WHAT HAPPENS IF 10 OF THE 12 OWNERS ARE HAPPY FOR 6 TO ENRICH THEMSELVES (AT A VALUE OF `R300 000 TO R500 000 EACH) BY TAKING THE COMMON PROPERTY FOR THEMSELVES AS EXCLUSIVE USE AREA?

The Sectional Titles Amendment Act, No. 11 of 2010 was published on December 7 2010 and one of the amendments is Section 24 (6) (d), which deals with the extension of sections in sectional title schemes.

“As before under Section 24, owner who want to extend their sections need to apply to the body corporate for approval,” says Martin Bester, the managing director of Intersect Sectional Title Services, who sits on the residential and sectional title committee of SAPOA (SA Property Owners Association) and is a committee member of the Sectional Title Regulations Board.

“This approval must be in the form of a special resolution of the members. Once owners have received approval they must arrange draft sectional plans of extension which are then submitted to the Surveyor General for approval.

“The amendments for Section 24 (6) (d) (i) now prescribe that a land surveyor or architect – not a conveyancer, as was previously prescribed – must confirm that the proposed extensions don’t exceed the 10 percent extension threshold which is currently in place.

“If extensions exceed the threshold then amended Section 24 (6) (d) (ii) prescribes that a conveyancer must provide a certificate confirming that all mortgagees have consented to the registration of the sectional plan of extension of that section,” says Bester.

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RE: St amendment - landgrab - eua

Carel Basson replied on Thu, 08 Mar 2012 at 11:03

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RE: St amendment - landgrab - eua

Gerhard Bezuidenhout replied on Thu, 08 Mar 2012 at 22:07

Not sure what your question is: "What happens...?)
1. Supposedly you refer to LAND being declared EUA?
2. The article referred to deals with extension of sections - which has to do with the building.

RE: St amendment - landgrab - eua

tee lamprecht replied on Fri, 16 Mar 2012 at 20:53

The question remains - when trustees are in breach of their fiduciary duties, is it simply a fine of say, R100 000 each? or should the matter be reported to the police and criminal charges laid for the trustees self enrichment, acting in conflict of interest, breach of King 3, etc etc ?

RE: RE: St amendment - landgrab - eua

Anne Greening replied on Sat, 17 Mar 2012 at 15:04

Hi, tee. The ST Act does not provide for specific penalties if trustees fail in their duties. As I understand it, it is up to the owners to take action if their are not satisfied with the trustees' performance. From your posting, it seems that you would not get the 25% support needed to call a SGM to oust the culprits; but you, as an individual owner, can take action under PMR 71, to declare a dispute.

RE: St amendment - landgrab - eua

Rob Ross replied on Mon, 19 Mar 2012 at 05:38

Your post includes too little information to correctly offer you an answer. By assumption, 6 of 12 would likely mean that you have ground floor and upper floor units, and the former have been offered EUA rights over gardens. If the decision was taken at a general meeting duly called, passed and recorded in terms of the sectional title act, and assuming 10/12 are in agreement, it sounds like that could well have been the case, then what is the problem? That you were not consulted? That you were not in agreement? Sometimes you can't get your way in sectional title (life) and have to go with the majority vote. If you don't like it, you have choices. Sell!?!

RE: St amendment - landgrab - eua

Annie Graeme replied on Tue, 20 Mar 2012 at 13:20

if trustees are in breach of their fiduciary duties, or there is an abuse of power or a conflict of interest, the general laws of the country apply and the trustees will be charged with fraud. Search for "fiduciary duties" on the www and see where complaints can also be lodged. If the trustees enriched themselves or misused their powers the results are severe; and then the cicl action will start. See numerous court cases and strict and harsh judgements.

RE: St amendment - landgrab - eua

Samantha Britz replied on Tue, 20 Mar 2012 at 13:41

This question
was discussed earlier and is relevant: : I Would Like To Build A Garage On Our Complex Property. I Have consent Of only 75% of the Owners. Do I Have Pay For The Land?
If I Refuse To Pay What Are The Legal Implications?
Does One One Make a donation to obtain an EUA ?
If a quarter of the land in the complex is vacant, can one sell that to another developer?
It is clear that the trustees can fine one if one does this without unanimous approval of the body corporate. In fact if they do not fine one, they will be guilty themselves of not doing their duty.
Prof Paddock wrote:
Re: PAYING FOR LAND
First we need to be clear that your situation, i.e. where an owner wants to build something like a garage on the common property, is not a 'dealing with the common property'. The common property, owned by all owners of sections, is not being sold or dealt with in any way.
The question is whether other owners will agree to a part of the common property being improved, either as part of an extended section or as an exclusive use area.
The answers to your queries are fairly straightforward.
1. No other owner is obliged to vote for the special or UNANIMOUS resolution which is required to allow another owner either to extend his section or to have exclusive use of a part of the common property.
2. In some - but not all - schemes, owners require those who wish to 'take over' a part of the common property in either of these ways to pay an amount. This is not a price for the property, but a financial inducement to persuade other owners to agree to the special or unanimous resolution. Iif such an amount has been paid in the past it will be expected later.
3. If there is to be a consideration paid, the parties will negotiate the amount. Neither the Act nor the prescribed rules make any provision in this regard.

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