27.     Extension of schemes by addition of sections

            (1) A developer may, subject to the provisions of section 4(2) and (3) in his application for the registration of a sectional plan, reserve, in a condition imposed in terms of section 12(2), the right to erect and complete from time to time, but within a period stipulated in such condition, for his personal account-

     (a)     a further building or buildings;

     (b)     a horizontal extension of an existing building;

     (c)     a vertical extension of an existing building,

on a specified part of the common property, and to divide such building into a section or sections and common property and to confer the right of exclusive use over parts of such common property upon the owner or owners of one or more sections.

            (2) In the event of a reservation made in terms of subsection (1), the application for the registration of the sectional plan shall, in addition to the documents referred to in section 12(3), be accompanied by-

     (a)     a plan to scale of the building to be erected and on which-

           (i)       the part of the common property affected by the reservation;

          (ii)       the siting, height and coverage of all buildings;

          (iii)       the entrances and exits to the land;

         (iv)       the building restriction areas, if any;

          (v)       the parking areas; and

         (vi)       the typical elevation treatment of all buildings, are indicated;

     (b)     a plan to scale showing the manner in which the building to be erected is to be divided into a section or sections and any exclusive use areas;

     (c)     a schedule indicating the estimated participation quotas of all the sections in the scheme after such section or sections have been added to the scheme;

     (d)     particulars of any substantial difference between the materials to be used in the construction of the building to be erected and those used in the construction of the existing building;

     (e)     particulars of such applicable expenses as are specified in section 40(1)(a), which will be borne by the developer from the date of establishment of the association until the sectional plan of the extension is registered;

     (f)      the certificate of real right which is to be issued in terms of section 13(1)(e); and

     (g)     such other documents and particulars as may be prescribed.

            (3) The developer shall promptly on demand pay any moneys due in terms of subsection (2)(e) to the association.

            (4) A right reserved in terms of subsection (1) or vested in terms of subsection (6), and in respect of which a certificate of real right has been issued-

     (a)     shall for all purposes be deemed to be a right to urban immovable property which admits of being mortgaged; and

     (b)     may be transferred by the registration of a notarial deed of cession in respect of the whole, a portion or a share in such right:

                      Provided that in the case of a cession affecting only a portion of the land comprising the scheme only such portion shall be identified to the satisfaction of the Director.

            (5) A right reserved in terms of subsection (1) may be exercised by the developer or his successor in title thereto, even though the developer or his successor in title, as the case may be, has no other interest in the common property.

            (6) If no reservation was made by a developer in terms of subsection (1), or if such a reservation was made and for any reason has lapsed, the right to extend a scheme including land referred to in section 28, shall vest in the association which shall be entitled, subject to this section and after compliance with the necessary changes, with the requirements of paragraphs (a), (b), (c), (d), and (g) of subsection (2), to obtain a certificate of real right in the prescribed form in respect thereof:

            Provided that the association shall only exercise or sell or transfer such right with the written consent of all the members of the association as well as with the written consent of the mortgagee of each unit in the scheme:

            Provided further that a member or mortgagee shall not withhold such approval without good cause in law.

            (7) If no reservation has been made by a developer in terms of subsection (1) and the association has not yet been formed, the Registrar may issue a certificate of real right of extension referred to in section 13(1)(e) on application by the developer accompanied by the sectional mortgage bond and the written consent of any bondholder.

            (8) Upon compliance with subsection (7) this Act shall apply with the necessary changes to such real right as if it had originally formed part of the application for the opening of the sectional title register and such certificate of real right shall be issued subject to any sectional mortgage bond against the land.

            (9) Subject to the provisions of subsection (10), the provisions of sections 7, 8 and 9 shall apply to the submission of a sectional plan of an extension to the Director in terms of this section and the approval thereof by him.

            (10) The sectional plan of an extension submitted to the Director, shall be accompanied by a revised schedule specifying the participation quota of each section in the building depicted on the sectional plan and the sectional plan of an extension, calculated in accordance with the provisions of section 35 as if the plan of the extension formed part of the sectional plan when it was registered, and the Director shall file such revised schedule with the sectional plan.

            (11) A developer or his successor in title to a right reserved in terms of subsection (1), or the association in terms of subsection (6), as the case may be, may, after approval of a sectional plan of an extension by the Director in terms of this section, apply to the Registrar for the registration of such plan of the extension and the inclusion of the additional section in the sectional title register.

            (12) An application under subsection (11) shall be accompanied by-

     (a)     two copies of the sectional plan of the extension;

     (b)     the certificate of real right by which the reservation in terms of subsection (1) or (6) is held, together with any sectional mortgage bond registered against the certificate of real right and the consent of the mortgagee to the substitution of the sections depicted on the sectional plan of the extension and their undivided shares in the common property, as security in lieu of the real right held under the certificate of real right mortgaged under the bond;

     (c)     certificates of registered sectional title in the prescribed form in favour of the developer, his successor in title or the association, as the case may be, in respect of each section reflected on the plan of the extension;

     (d)     such other documents and particulars as may be prescribed.

            (13) When the requirements of this section and of any other enactment have been complied with, the Registrar shall-

     (a)     register the sectional plan of the extension;

     (b)     extend the sectional title register to include the sections depicted on the plan of the extension;

     (c)     on the registration of the sectional plan of the extension, issue to the developer, his successor in title or the association, as the case may be, a certificate of registered sectional title in respect of each section depicted on the sectional plan of the extension and its undivided share in the common property, furnish the local authority with a copy of such plan of extension and notify the Director of the registration of such plan of the extension, and thereupon the Director shall amend the original sectional plan and the Deeds Registry copy of the sectional plan to show such an extension; and

     (d)     make such entries in his records and endorsements on the certificates of registered sectional title referred to in paragraph (c), any certificate of real right referred to in subsection (12)(b), and any sectional mortgage bond registered against the certificate of real right, as are necessary to give effect to this section.

            (14) Upon registration of a sectional plan of an extension referred to in subsection (13)(a)-

     (a)     the owners of sections in the building in the scheme that is being extended, the mortgagees of sectional mortgage bonds and the holders of any real rights registered over such sections, shall be divested of their share or interest in the common property to the extent that an undivided share in the common property is vested in the developer, his successor in title or the association, as the case may be, by the issue of the certificates of registered sectional title referred to in subsection (13)(c);

     (b)     a sectional mortgage bond whereby a real right held by a certificate of real right referred to in subsection (12)(b) is mortgaged, shall be deemed to be a sectional mortgage bond over the sections depicted on the sectional plan of the extension and their undivided share in the common property and registered against the certificates of sectional title issued in terms of subsection (13)(c); and

     (c)     the sectional plan of an extension shall be deemed to be incorporated in the sectional plan registered in terms of section 13(1)(a), and thereupon the provisions of section 14(1) and (2) shall have effect.

            (15) A developer or his successor in title who exercises a reserved right referred to in subsection (1), or an association exercising the right referred to in subsection (6), shall be obliged to erect and divide the building into sections strictly in accordance with the documents referred to in subsection (2), due regard being had to changed circumstances which would make strict compliance impracticable, and an owner of a unit in the scheme who is prejudiced by his failure to comply in this manner, may apply to the court, whereupon the court may order proper compliance with the terms of the reservation, or grant such other relief, including damages, as the court may deem fit.

            (16) In all cases where a developer or an association has a real right to extend a scheme as mentioned in this section, such right shall be disclosed in the agreement by which the unit is sold conditionally, or disposed of, to every purchaser of a section in the scheme concerned.

            (17) An agreement by which a unit is sold conditionally or is disposed of in which a real right has not been disclosed as mentioned in subsection (16), shall be voidable at the option of the purchaser; and it shall be void if the purchaser notifies the seller that he annuls the conditional sale or disposal, and thereupon the provisions of section 11(5) to (7) shall apply.

28.     Extension of schemes by addition of land to common property

            (1) An association, authorized thereto in writing by all of its members, may purchase land to extend the common property.

            (2) Land purchased by an association in terms of subsection (1) shall be deemed to be owned by the owners of the sections in the building concerned in the same proportion as their participation quota as reflected on the sectional plan.

            (3) The provisions of section 9(2)(a), (3) and (5) shall, with such necessary adaptation, apply for the preparation and submission to the Director of a plan of an extension of the common property, and the approval of such plan by him.

            (4) The Registrar shall register a plan of the extension of the common property in terms of this section by making an endorsement on the title deed to show that the land in question has been incorporated in the sectional plan, shall make such further endorsements and entries in his records as may be necessary to give effect thereto, and shall furnish a copy of the sectional plan of the extension to the local authority and notify the Director of the registration of such plan of the extension, and thereupon the Director shall amend the original sectional plan and Deeds Registry copy of the sectional plan to reflect such extension.

            (5) The Registrar shall not register a plan of an extension in terms of this section if the additional land to be incorporated as common property is subject to a mortgage bond.

            (6) Upon the registration of a plan of an extension of the common property in terms of this section, such plan shall be deemed to be incorporated in the sectional plan registered in terms of section 13(1)(a), and the land to which such sectional plan of the extension relates shall be deemed to be incorporated as common property in such registered sectional plan.