Sectional Titles

Lapsing on completion of a right of extension

The former practice in the Pietermaritzburg deeds registry was, when checking the estimated Participation Quote sheet filed with the section 25(2) requirements of the Sectional Titles Act, Act 95 of 1986 (the "Act"), with the number of sections registered when a sectional plan of extension was registered, to request the conveyancer to certify that the right of extension has lapsed as all the phases envisaged therein have been completed.

The examiner would in turn endorse the section 11(3)(b) schedule, the bond over the certificate of real right of extension, if any, and the certificate of real right of extension to the effect that the right has lapsed as all the phases envisaged therein have been completed. A certificate from a conveyancer had to have been furnished to that effect.

The practice now is that in view of the fact that section 25(13) of the Act places no onus on the Registrar of Deeds to ensure that the developer erects buildings in accordance with the requirements of section 25(2) of the Act and furthermore in view of the case Knoetze v Saddlewood CC [2001] 1 A11 SA 42 (SE) pertaining to "changed circumstances" as referred to in section 25(13), the view held in the office is that the onus is now placed on the conveyancer to ascertain from the developer whether the right to extend has lapsed whenever an extension of a scheme in terms of section 25 of the Act is lodged in a deeds registry for registration.

An application in terms of section 68(1) of the Deeds Registries Act, Act 47 of 1937 read with section 15(B)(1)(d) of the Sectional Titles Act has to be lodged for the lapsing of such right of extension. The deeds registry in Pietermaritzburg will only view a right to extension as lapsed where the section 11(3)(b) Schedule and the Certificate of Real Right of Extension has been endorsed to this effect.

Registrar's Circular 2 of 2004 must be complied with in respect of portions of a right of extension as well, where such right has lapsed. The Registrar's Circular in this regard is quoted in toto.

(What is the opinion of the other deeds registries in this regard? - Editor of SA Deeds Journal)

Republished with permission

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