1. SECTIONAL TITLES: RESTRICTIVE CONDITIONS OF TITLE
THE FOLLOWING IS A GUIDE TO THE CORRECT WORDING FOR HEADINGS OF RESTRICTIVE CONDITIONS OF TITLE TO BE CARRIED FORWARD IN A SECTIONAL DEED OF TRANSFER FROM EITHER
Variation 1: Restrictive conditions in schemes registered under the "old" Act:
(iii) Subject to the following conditions imposed by the Developer (or the Administrator or the Local Authority) in terms of Section 5(3)(d)(i) of the Sectional Titles Act No. 66 of 1971 as created in the Annexure "A" to Sheet 1 of the Sectional Plans namely:
Here quote the restrictive condition verbatim from the Annexure A
Variation 2: Restrictive conditions in schemes registered under the "new" Act
(iii) Subject to the following conditions imposed by the Developer in terms of Section 11(2) of the Sectional Titles Act No. 95 of 1986 as created in the Conveyancer's Certificate in terms of Section 11(3)(b) of the Sectional Titles Act No. 95 of 1986 namely:
Here quote the restrictive condition verbatim from the section 11 (3)(b) certificate
- In neither instance must the restrictive conditions be "created" in the power of attorney to transfer. They are existing registered conditions.
- The conditions must follow immediately after the two prescribed conditions in the prescribed form "H" of the regulations to Sectional Titles Act 95 of 1986 and the heading/s should be numbered (iii), (iv) …etc.
- Where the conditions have previously been created in a Deed of Transfer or by Notarial Deed, then the usual heading for conditions of title (including the creative deed) must be used - for e.g.
(iii) Subject to the following condition as created in Deed of Transfer T …….. (or Notarial Deed of Servitude K ………..):
Here quote the restrictive condition verbatim from the holding title
If any correspondents have any queries about this procedure they are welcome to contact the writer.
2. SECTIONAL TITLE MORTGAGE BONDS
All correspondents will no doubt be aware by this stage that there are minor amendments to the prescribed from Z for sectional mortgage bonds and that the usual reference to restrictive conditions must now be referred to in sectional mortgage bonds.
J LESLIE SMITH & COMPANY INC
Republished with permission