Parliament gives green light to Sectional Titles Bill

sectional titles
01 Nov 2022

Parliament has passed the Sectional Titles Amendment Bill and sent it to president Ramaphosa for assent.

The bill was tabled in parliament in November 2020.

The bill’s explanatory summary was published in Government Gazette 43722 in September 2020.

The bill aims to amend the Sectional Titles Act of 1986 so as to:

  • amend certain definitions;
  • provide for the developer to answer questions put to the developer by the agents of the lessees;
  • further provide for the amendment of sectional plans in respect of exclusive use areas;
  • further provide for the amendment and cancellation of a sectional plan upon an order of the court;
  • provide for the noting of a title deed in respect of the lapsing of a reservation in terms of section 25;
  • provide for a lease of part of the common property with the consent of the holders of registered real rights;
  • amend the provisions relating to the alienation of common property;
  • further provide for the cancellation of a mortgaged section and mortgaged exclusive use area;
  • also provide for a developer to submit a plan for subdivision or consolidation to the Surveyor-General for approval to subdivide, consolidate and to extend a section;
  • extend the registration of subdivision of a section, the consolidation of sections, and the extension of sections to a developer;
  • provide for the filing of replacement documentation in respect of lost or destroyed documentation;
  • amend the provisions relating to the extension of a scheme;
  • amend the provisions relating to participation quotas of sections;
  • regulate the membership of the sectional titles regulations board; and
  • provide for matters connected therewith.

Cabinet approved the bill in August 2020 for tabling in parliament.

According to the cabinet statement, the “proposed amendments provide clarity and protect the lessees in the properties under the sectional-arrangement buildings”.

The portfolio committee on agriculture, land reform and rural development sought comment on the bill in March 2021.

During deliberations, the committee inserted a new long title into the bill.

The national assembly passed the bill and sent it to the NCOP for concurrence in November 2021.

Briefing the select committee on land reform, environment, mineral resources and energy on the bill in May 2022, the department pointed out that the Sectional Titles Regulations Board is responsible for keeping the application and implementation of the act under regular review and to make recommendations to the agriculture, land reform and rural development minister on amendments to the act.

The amendments contained in the bill flow from Board recommendations.

In a later briefing on submissions, the department pointed out that the bill was edited, certified and found to be in order by the office of the chief state law advisor; the roles and responsibilities and position of owners of units in relation to the body corporate are aspects that fall under the Sectional Title Schemes Management Act; and language matters to be addressed by the developer with the answering of questions.

The select committee on land reform, environment, mineral resources and energy passed the bill without amendments.

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(This article is provided for informational purposes only and not for the purpose of providing legal advice. For more information on the topic, please contact the author/s or the relevant provider.)
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