Sectional Titles

A suggestion

John Christie has suggestions for a better procedure for dealing with exclusive use areas (EUAs) in terms of s 27 of the Sectional Titles Act, because the current procedure is cumbersome, costly and time consuming. Before reaching his proposal, he highlights some of the problems and disadvantages inherent in the present system. These include:

  • The notarial deed of cession is an additional and unnecessary act of registration.
  • It adds to the costs of transfer.
  • Exclusive Use Areas can be difficult to trace.
  • EUAs need to be disclosed on transfer duty receipts and on miscellaneous certificates, resulting sometimes in rejection queries by the Deeds Office.
  • EUAs are often omitted in error from agreements of sale by estate agents.
A better solution
The general principles of delineation and reservation of EUAs, as well as the concept and flexibility of being able to cede EUAs by notarial deed should be retained. The proposal, however, is that EUAs should be treated as conditions of title by incorporation into, or endorsement against, the holding title of the relevant unit as is the procedure with other servitudes and with leases. Once an EUA has been endorsed against the holding title it will thereafter simply be carried forward as a condition of title in future transfers of the unit.

Alternatively, the prescribed form for a transfer (form H) could be amended to include a paragraph dealing with EUAs in order to ensure uniformity in the description of EUAs. He concludes the article by refining them further and in addressing any potential problems their implementation could cause.

De Rebus website

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