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|