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Sectional Titles - Participation Quotas And Developers (Ss 35-37)

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35.     Participation quotas

 

            (1) Subject to the provisions of section 51, in the case of a scheme for residential purposes only, the participation quota of a section shall be a percentage expressed to four decimal places, and arrived at by dividing the floor area, correct to the nearest square metre, of the section by the floor area, correct to the nearest square metre, of all the sections in the building comprised in the scheme.

            (2) Subject to the provisions of section 51, in the case of a scheme other than a scheme referred to in subsection (1), the participation quota of a section shall be a percentage expressed to four decimal places, as determined by the developer:

            Provided that-

     (a)     where a scheme is partly residential, the total of the quotas allocated by the developer to the residential sections shall be divided among them in proportion to a calculation of their quotas made in terms of subsection (1);

     (b)     where a developer conditionally sold or disposed of a unit in such a scheme before the sectional title register is opened, the total of the quotas allocated to the respective sections and the participation quota of that unit must be disclosed in the agreement by which the unit is conditionally sold or disposed of; and

     (c)     where such disclosure is not made, the agreement by which the unit is sold conditionally or disposed of shall be voidable at the option of the purchaser and the provisions of section 27(17) shall apply in respect of any such sale.

            (3) Subject to the provisions of subsection (4), the quota of a section shall determine-

     (a)     the value of the vote of the owner of the section, in any case where the vote is to be reckoned in value;

     (b)     the undivided share in the common property of the owner of the section ; and

     (c)     subject to the provisions of section 40(1)(b), the proportion in which the owner of the section shall make contributions for the purposes of section 40(1)(a), or may in terms of section 50(1) be held liable for the payment of a judgment debt of the association of which he is a member.

            (4) Subject to the provisions of section 40(1)(b), the developer may, when submitting an application for the opening of a sectional title register, or the members of the association may by special resolution, make rules under section 38 by which a different value is attached to the vote of the owner of any section, or the liability of the owner of any section to make contributions for the purposes of section 40(1)(a) or 50(1) as modified:

            Provided that where an owner is adversely affected by such a decision of the association, his written consent must be obtained:

            Provided further that no such change may be made by a special resolution of the association until such time as there are owners, other than the developer, of at least 30 per cent of the units in the scheme:

            Provided further that, in the case where the developer transfers a unit before submitting an application for the opening of a sectional title register, no exercise of power to make a change conferred on the developer by this subsection shall be valid unless the intended change is disclosed in the deed of sale in question.

            (5) The specification in the schedule to a sectional plan of the quota of each section and of the total of the quotas of all the sections in the building comprised in a scheme, shall for all purposes be deemed to be correct in the absence of proof to the contrary.

 

36.     Sale or letting of sections

 

            Nothing in this Act or any other enactment shall be construed as preventing a developer from selling certain sections in a building and letting other sections therein or from letting all sections therein.

 

37.     Shares of developers in buildings and land

 

            (1) The developer shall be the owner of any section in respect of which the ownership is not held by any other person, and the quota of such section or, if there is more than one such section, the total of the quotas of such sections, shall determine the share of the developer in the common property.

            (2) When the ownership in every section is held by any person other than the developer, the developer shall, subject to the provisions of section 27(1), cease to have a share or interest in the common property.

            (3) When a developer has in one transaction sold the whole of his interest in the land and the building comprised in a scheme, or a share in the whole of such interest, to any other person, the Registrar shall register the transaction by means of a deed of transfer in the case of units and by means of a bilateral notarial deed of cession in the case of rights reserved under sections 27 and 29.

            (4) The Registrar shall not register the transfer of a transaction referred to in subsection (3) unless-

     (a)     there is produced to the Registrar a clearance certificate of the local authority that-

           (i)       all rates and moneys due to that local authority in respect of the land concerned have been paid up to and including the day of transfer; or

          (ii)       in those cases where an enactment provides for the separate levying of rates in respect of a unit, all such rates due to the local authority in respect of the unit concerned have been paid up to and including the day of transfer; and

     (b)     there is produced to the Registrar a certificate by a conveyancer confirming that, an association has been formed in terms of section 39(1), that the association has certified that all moneys due to the association by the transferor in respect of the units concerned have been paid or provision for the payment thereof has been made to the satisfaction of the association.