Chief Registrar’s Circular No. 13 of 2016
Amendment of Sectional Titles Act 95 of 1986 by Sectional Titles Schemes Act 8 of 2011
1. COMMENCEMENT OF ACT 8 OF 2011
It is anticipated that the Sectional Titles Schemes Management Act, 2011 (Act 8 of 2011), will come into operation on 7 October 2016.
2. PURPOSE OF ACT 8 OF 2011
The purpose of Act 8 of 2011, amongst other things, is to provide for the establishment of bodies corporate to manage and regulate sections and common property in sectional titles schemes; to amend the Sectional Titles Act, 1986 (Act 95 of 1986); and to provide for matters connected therewith.
3. AMENDMENT OF THE SECTIONAL TITLES ACT 95 OF 1986, BY ACT 8 OF 2011
3.1 The Schedule to Act 8 of 2011 provides for the amendment of the Sectional Titles Act, 1986 (see section 20 of Act 8 of 2011). These amendments will come into operation on the same day as the coming into operation of Act 8 of 2011.
3.2 Only the amendments that have an impact on deeds registration procedures are herein discussed.
Words in bold type in square brackets indicate omissions and words underlined with a Solid line indicate insertions.
3.2.1 Section 11(3)(e) has been amended to read as follows:
"(e) a certificate by [a conveyancer] the Chief Ombud stating that the rules [prescribed in terms of section 35(2) are applicable, and containing the other rules (if any) substituted by the developer for those rules as contemplated in that Section] contemplated in section 10 of the Sectional Titles Schemes Management Act have been approved."
3.2.2 Section 15B(3)(a)(i)(aa) has been amended to read as follows:
"(i) (aa) if a body corporate is deemed to be established in terms of Section [36(1)], 2 (1) of the Sectional Titles Schemes Management Act, that body corporate has certified that all moneys due to the body corporate by the transferor in respect of the said unit have been paid, or that provision has been made to the satisfaction of the body corporate for the payment thereof, or"
3.2.3. Section 25(6) has been amended to read as follows:
"(6) if no reservation was made by a developer in terms of subsection (1), or if such a reservation was made and for any reason has lapsed, the right to extend a scheme including the land contemplated in section 26, shall vest in the body corporate, which shall be entitled Subject to this section, section 5(1)(b) of the Sectional Titles Schemes Management Act and after compliance, with the necessary changes, with the requirements of paragraphs (a), (b), (c), (d) and (g) of subsection (2), to obtain a certificate of real right in the prescribed form in respect thereof [:Provided that the body corporate shall only exercise or alienate or transfer such right with the written consent of all the members of the body corporate as well as with the written consent of the mortgagee of each unit in the scheme: Provided further that a member or mortgagee shall not withhold such approval without good cause in law]."
3.2.4. Section 27(3) has been amended to read as follows:
"(3) [The body corporate, duly authorized thereto by a unanimous resolution of its members, shall transfer the] A right to the exclusive use of a part or parts of the common property delineated on the sectional plan in terms of subsection (2) shall be transferred to the owner or owners on whom such right has been conferred by the body corporate by the registration of a notarial deed entered into by the parties and in which the body corporate shall represent the owners of all the sections as transferor.
3.2.5. Repeal of section 35:
Section 35 has been repealed.
3.2.6. Section 36 has been amended by the substitution for subsections (1), (2), and (3) of the following sections:
"(1) When a unit is registered in the name of any person other than the developer, the registrar must issue a certificate in the prescribed form.
(2) The effect of the registration referred to in subsection (1) is the establishment of a body corporate for the scheme, in terms of the Sectional Titles Schemes Management Act.
(3) The registrar must lodge a copy of the certificate referred to in subsection (1) with the chief ombud."
CERTIFICATE OF ESTABLISHMENT OF BODY CORPORATE IN TERMS OF THE
PROVISIONS OF SECTION 2(1) OF THE SECTIONAL TITLES SCHEMES
MANAGEMENT ACT 8 OF 2011
Prepared by me
(State full name and surname)
l, Registrar of Deeds at .............................., hereby certify that a body corporate
designated as the Body Corporate of the............................. Scheme,
No. ........., is deemed to be established with effect from
Signed at.............................. On..............................
Seal of Office
Registrar of Deeds
3.2.7. Section 21 of Act 8 of 2011 - Transitional arrangements
Section 21 of Act 8 of 2011 reads as follows:
"Rules prescribed under the Sectional Titles Act must continue to apply to new and existing schemes until the Minister has made regulations prescribing management rules and conduct rules referred to in section 10 (2) of this Act."
3.28. Appointment of Arbitrators
Section 10(12) of Act 8 of 2011 provides as follows:
"(12) Any rules made under the Sectional Titles Act are deemed to have been made under this Act.".
3.2.9. Other sections repealed
Sections 1(2), 1(3), 1(3A), 19(1), 19(2), 25(3), 26(1), 27A, 32(4), 35, 36(4) to 36(7), 37 to 48, and 51 have been repealed.