Sectional title - Heed the “right to extend”

When a sectional title complex is introduced, the developer can decide to build fewer units than was initially allowed and might reserve the right to develop those units at a later stage.

This is known as an " Article 25 right to extend " and buyers who wants to buy in both new and established schemes should always check whether such a right exists - and the expiry date - before they sign a purchase offer, says Berry Everitt , MD of the Chas Everitt International property group .

He writes in the latest edition of the newsletter , Property Signposts , that the Sectional Titles Act sets out strict conditions under which a developer can exercise an Article 25 right . The developer must include:

* When he applies he must include the right to extend in the original sectional title application;
* Indicate the period in which the additional units may be built;
* Indicate exactly how many additional units will be built;
* Indicate where and how it will be built;
* Indicate the size of the extra units and show how it affects the existing units and;
* Show the exteriors of the new units .

" The Act also specifies that once the legal process has been completed, the developer cannot change any of the above specifications without the consent of all the legal parties involved.” 

To further protect both buyers and owners, the Act also requires that every new buyer shall be notified in writing about the existence of the right to extend, and if they are not, the buyer can legally cancel the transaction at anytime.  

"The reason for this is that existing owners , will be affected personally as well as in monetary terms , if a developer decides to act on his right to extend.”

"Think of all the dust and disruption that an established community would have to endure if construction resumes . Whether it is the shock when you find out that a new building will spoil the picturesque views that your home had or that new units will be added on top of your once top level apartment. 

With sectional titles it is also advisable to note, that the land forms part of the common property and is in undivided shares owned by the members of the body corporate .

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 20 Feb 2018
      Owning a home is a milestone that most South Africans aspire to. Becoming a homeowner is a step towards growing personal wealth and owning an asset that appreciates in value over time, provided of course that the correct principles are applied during the buying stage of the process, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
    • 20 Feb 2018
      The suburb of Greenstone in Johannesburg east came to be over the last two decades. “In the beginning, it was literally just a hill with not so much as a shopping centre,” says Michael Levy, Property Consultant at Jawitz Properties Bedfordview. Today it has plenty shopping facilities and is fully built, boasting high-density, upmarket housing and residential estates, though still has a few pockets poised for commercial development.
    • 20 Feb 2018
      A major shift in the ageing paradigm has precipitated an equally dramatic transformation in the retirement sector, with modern accommodation options worlds away from the conventional model.
    • 19 Feb 2018
      Possibly one of the biggest sources of contention between landlords and tenants surrounds the rental deposit. “Most tenants rely on getting their rental deposits back when moving, so that they can use it to pay a deposit on their new home. Having it withheld or even having large amounts deducted can lead to a lot of distress,” explains Bruce Swain, CEO of Leapfrog Property Group.
    • 19 Feb 2018
      Situated approximately halfway between Johannesburg and Pretoria, Midrand was established in 1981 and forms part of the City of Johannesburg Metropolitan Municipality. It has become one of the major business hubs in the country with major pharmaceutical, textile, telecommunication and motoring giants situated within its boundaries.
    • 19 Feb 2018
      The PayProp Rental Index Annual Review of 2017 shows that the rental market suffered from much volatility during the year. It kicked off with rental growth spiking in January with weighted year-on-year growth (YoY) growth peaking at 8.3% before dropping to 6.34% in July, dipping down to less than 5% in November and then experiencing a slight uptick at 5.75% in December.
    • 19 Feb 2018
      While most homes in cluster complexes, estates and other gated communities come with at least one garage or carport, residents would often like additional permanent parking or storage areas for things like trailers, bikes, boats and caravans.
    • 16 Feb 2018
      Whether you own a property in a sectional title complex or are looking to invest in one, the financial standing of the body corporate is the single most important thing that can affect your investment or your buying decision.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us