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SECRET DEPARTMENT OF RURAL DEVELOPMENT & LAND REFORM. SECTIONAL TITLES AMENDMENT BILL, 2013 CLAUSE BY CLAUSE PRESENTATION BY MR S B MBATHA – ACTING CHIEF REGISTRAR OF DEEDS. SECRET INTRODUCTION.
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SECRETDEPARTMENT OF RURAL DEVELOPMENT & LAND REFORM SECTIONAL TITLES AMENDMENT BILL, 2013 CLAUSE BY CLAUSE PRESENTATION BY MR S B MBATHA – ACTING CHIEF REGISTRAR OF DEEDS
SECRETINTRODUCTION This presentation aims to provide a clause by clause explanation of the Sectional Titles Amendment Bill, 2013. The current position will be outlined, then followed by an outline of the proposed amendments and then a discussion of the effect of the proposed amendments.
CURRENT POSITION The current definitions ‘Architect’ and ‘Land Surveyor’ relate to all Architects and all Land Surveyor. The current reference to a developer’s agent is limited to section 4(3). SECRETClause 1 of the Bill
PROPOSED AMENDMENT The proposed amendment inserts the words ‘and who has met the requirements set out in section 5(2) of this Act’ in the definitions of ‘Architect’ and ‘Land Surveyor’ respectively. It also expands reference to a developer’s agent to relate to the entire section 4 and not only paragraph 3 of the said section. EFFECT OF AMENDMENT The amendment now clearly identify those Architects and Land Surveyors who are qualified to prepare sectional plans. It also aligns the definition of ‘Developer’ with section 4 of the Act. SECRETClause 1 continued
CURRENT POSITION Section 4 makes reference to the developer’s agent. PROPOSED AMENDMENT The amendment deletes reference to the developer’s agent in section 4(3). EFFECT OF AMENDMENT The amendment aligns section 4(3) with the definition of ‘Developer’. SECRETClause 2 of the Bill
CURRENT POSITION Section 14(8) does not specify the manner in which the Registrar of Deeds should go about in recording the cancelation of a sectional plan. PROPOSED AMENDMENT The proposed amendment insert the words ‘in the prescribed manner’ in section 14(8) of the Act. SECRETClause 3 of the Bill
EFFECT OF AMENDMENT The amendment opens the door to the amendment of the regulations to the Act to provide for a procedure that the Registrar of Deeds will follow in recording the cancellation of a sectional plan. SECRETClause 3 continued
SECRETClause 4 of the Bill CURRENT POSITION The current section 15(B) does not outline the procedure that the Registrar of Deeds should follow in issuing the certificate of registered title referred to in sections 15B(5) and 15B(5A). PROPOSED AMENDMENT The amendment inserts sub-sections 7 to 11 in section 15B.
SECRETClause 4 continued EFFECT OF AMENDMENT The amendment outlines a procedure to be followed by the Registrar of Deeds in issuing a certificate of registered title in respect of a fraction of a share in a sectional title unit. The amendment also tabulates the registered deeds that must accompany an application for the said certificate of registered title.
SECRETClause 5 of the Bill CURRENT POSITION The current wording of section 17 does not deal with the lodgement of the consent of the registered owner affected by alienation of part of the common property nor the consent of the registered holder of a right of extension affected by the alienation of the common property.
SECRETClause 5 continued PROPOSED AMENDMENT The amendment amend section 17(4) by inserting paragraph (bA), sub-section 4C and substituting subsection 5 with a new subsection.
SECRETClause 5 continued EFFECT OF AMENDMENT The amendment makes it obligatory that the consents and title deeds of affected owners or holders of right of extension or affected holders of exclusive use areas be lodged when part of common property is alienated.
SECRETClause 6 of the Bill CURRENT POSITION • The current wording of section 18 does not provide for the application of section 56 of the Deeds Registries Act with regard to the cession of a mortgaged real right in or over a unit or an undivided share in a unit, the cession of a mortgaged right of extension, the cession of a mortgaged right to an exclusive use area.
SECRETClause 6 continued PROPOSED AMENDMENT • The amendment substitutes section 18 with a section that includes the words ‘the cession of any mortgaged real right in or over a unit or an undivided share in a unit, the cession of any mortgaged real right under sections 25 and 27 of this Act or an undivided share therein’
SECRETClause 6 - Continue EFFECT OF AMENDMENT The amendment will now provide a statutory basis for the cancelation of bonds hypothecating real rights over units, rights of extension and rights of exclusive use areas.
SECRETClause 7 of the Bill CURRENT POSITION The current wording of section 19 does not provide for a scenario in which expropriation affects only part of a section and not the entire section. PROPOSED AMENDMENT The amendment inserts in section 19, where appropriate, the words ‘or part of such section’.
SECRETClause 7 continued EFFECT OF AMENDMENT The amendment extends the application of section 19 to cases where only part of a section has been expropriated.
SECRETClause 8 of the Bill CURRENT POSITION The current wording of section 25(1) permits the extension, of the time period within which a sectional title scheme may be extended, by means of a unanimous resolution of the body corporate and bondholders. This is erroneous as the bondholders are not part of the body corporate. It also provides for the issuing of one certificate in respect of exclusive use areas and rights of extension.
SECRETClause 8 continued PROPOSED AMENDMENT The amendment makes this extension possible with the consent of the bondholders that are in existence at the time of taking the unanimous resolution by the body corporate. EFFECT OF AMENDMENT The amendment assists Notaries to identify the bondholders whose consent is to be sought and makes it possible to issue as much certificates as the developer would require.
SECRETClause 9 of the Bill CURRENT POSITION The current wording of section 27 provides for the issuing of only one certificate of real right in respect of all exclusive use areas delineated in the sectional plan. THE PROPOSED AMENDMENT The amendment inserts the words ‘or certificates’, in the appropriate subsections.
SECRETClause 9 continued EFFECT OF AMENDMENT The amendment makes it possible to issue to the developer as many certificates of real right as the developer would wish to obtain.
Clause 10 of the Bill contains the short title, which is just the name by which the new Act is to be known. SECRETClause 10 of the Bill