EUAs depicted on sectional plans

At a recent Sectional Title Regulation Board Meeting, the board was confronted with the question of whether the definition of an exclusive use area must be amplified to reflect that the area must be depicted on the sectional plan, so as to differentiate it from other exclusive use rights not deemed to be real rights.

The ration behind the proposal for the amendment was to prohibit developers from having a choice between real rights and personal rights, where the exclusive use areas are depicted on the sectional plan.

The Board resolved that the definition is clear and does not need amendment, as the proposed amendment will preclude the personal rights of exclusive uses from the provisions of the Sectional Titles Act. The Board was of the opinion that, where an exclusive use area is depicted on a sectional plan, the developer must take out a certificate of real rights for such exclusive use areas.

To eradicate any uncertainty as to the peremptory nature of this matter, the Board further resolved to amend the provisions of Section 27(1)(a) to enforce the issuing of the certificate of exclusive use area, where the name is depicted on a sectional plan.

In the interim, practitioners and registrars of deeds must compel the developer to take out a certificate of real rights and not permit exclusive use areas depicted on the Sectional Plan to be reserved and allocated in the rules of the scheme concerned.

Republished with permission from the SA Deeds Journal