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Calculation of deviation

15 August 2013

Section 24(d)(i) of the Sectional Titles Act 95 of 1986 reads as follows:

"(i) A certificate by a land surveyor or architect stating that there is not a deviation of more than 10 percent in the participation quota of the relevant section as a result of the extension." 

The interpretation of this calculation is such that if the participation quota of the newly extended section has increased by more than 10%, then the consent of the mortgagor of each section in the scheme must be obtained. 

The certificate referred to in section 24(d)(i) has nothing to do with the floor area, it ONLY deals with the participation quota. 

Note:  In the example below you need to compare column two with column three or, alternatively subtract the new participation quota (column three) of the extended section from the original which has been increased by 10% (column two), if the result is negative, then bondholders consents are required, if positive then the certificate can be issued. 

Example of the Calculation:

Original participation quota If increased by 10%  Participation quota of newly extended section Greater/Less than 10%
Unit 1 - 2,4392 2,6831 2,5372 Less
Unit  2 - 1,7321 1,9053 1,9399 Greater
Unit 3 - 0,9730 1,2065 1,2065 Greater
Unit 4 - 10,3267 11,3594 10,9463 Less

Richard Abrahamse
Surveyor 
Cape Town

Reader Comments: 1
BW Smith 18/02/2014:

Your article is totally confusing.Reference is made as follows: "..certificate has nothing to do with floor area.." ? PQ is worked out using floor area! Reference is made using words Positive, negative, greater and less, which creates confusion. Specifically where it is stated "... if the result is negative, then bondholders consents are required, if positive then the certificate can be issued." My understanding of "negative" is where the word "Less" is used, and "Positive" where the word "Greater" is used in the attached table.

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