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Sectional Titles - Owners, Administrators And Buildings (Ss 47-56)

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47.     Duties of owners

 

            (1) An owner shall-

     (a)     permit any person authorized in writing by the association, at all reasonable hours on notice (except in case of emergency, when no notice shall be required), to enter his section or exclusive use area for the purposes of inspecting it and maintaining, repairing or renewing pipes, wires, cables and ducts existing in the section and capable of being used in connection with the enjoyment of any other section or common property, or for the purposes of ensuring that the provisions of this Act and the rules made thereunder are being observed;

     (b)     forthwith carry out all work that may be ordered by any competent public or local authority in respect of his section, other than such work as may be for the benefit of the building generally, and pay all charges, expenses and assessments that may be payable in respect of his section;

     (c)     repair and maintain his section in a state of good repair and, in respect of an exclusive use area, keep it in a clean and neat condition;

     (d)     use and enjoy the common property in such a manner as not unreasonably to interfere with the use and enjoyment thereof by other owners or other persons lawfully on the premises;

     (e)     not use his section or exclusive use area, or permit it to be used, in such a manner or for such purpose as shall cause a nuisance to any occupier of a section;

     (f)      notify the association forthwith of any change of ownership in his section and of any mortgage or other dealing in connection with his section; and

     (g)     when the purpose for which a section is intended to be used is shown expressly or by implication on or by a registered sectional plan, not use nor permit such section to be used for any other purpose:

                      Provided that with the written consent of all owners such section may be used for another purpose.

            (2) Any owner who is of the opinion that any refusal of consent of another owner in terms of the proviso to subsection (1)(g) is unfairly prejudicial, unjust or inequitable to him, may within six weeks after the date of such a refusal make an application to the court.

            (3) If on considering any application made under subsection (2), it appears to the court that the refusal in question is unfairly prejudicial, unjust or inequitable to the applicant, and if the court considers it just and equitable, the court may with a view to bringing the dispute to an end make such order as it deems fit, including an order that it shall be deemed that the requirement stated in the proviso to subsection (1)(g) is met, an order that the provisions of section 15 which the court deems appropriate, shall be applied with reference to the amendment of the registered sectional plan in question, any other supplementary order as the court deems fit, and an order concerning costs as it deems appropriate.

 

48.     Insurance by owners

 

            (1) Notwithstanding the existence of a valid policy of insurance effected by an association in accordance with the provisions of section 40(1)(f), an owner may effect a policy of insurance against any damage to his section arising from risks covered by the policy effected by the association.

            (2) Where any damage is done to a section insured in accordance with the provisions of subsection (1), the insurer-

     (a)     shall not be liable in terms of the policy of insurance effected by the owner, if the damage is made good by the association in accordance with the provisions of section 40(1)(h);

     (b)     shall be liable in terms of the insurance effected by the owner if the damage is not made good by the association.

            (3) Where any damage done to a section is not covered by any policy of insurance effected by the association, the terms and conditions of the policy of insurance effected by the owner shall have effect.

            (4) Nothing in this section contained shall limit the rights of an owner to insure against risks other than damage to his section.

 

49.     Appointment of administrators

 

            (1) An association, a local authority, judgment creditor of the association for an amount of not less than P500, or any owner or any person having a registered real right in or over a unit, may apply to the court for the appointment of an administrator on the grounds-

     (a)     that the affairs of the association are being conducted or the powers of the trustees of the association are being exercised in a manner detrimental to the association; and

     (b)     that the association is encountering financial difficulties due to maladministration of the association.

            (2) The court may appoint an administrator for an indefinite or a fixed period on such terms and conditions as to remuneration as it deems fit.

            (3) The remuneration and expenses of the administrator shall be administrative expenses within the meaning of section 40(1)(a).

            (4) The administrator shall, to the exclusion of the association, have the powers and duties of the association or such of those powers and duties as the court may direct.

            (5) The court may, mero motu, or on the application of any person referred to in subsection (1) remove from office or replace the administrator or, on the application of the administrator, replace the administrator.

            (6) The court may, with regard to any application under this section, make such order for the payment of costs as it deems fit.

 

50.     Recovery of judgment debts from owners

 

            (1) If a creditor of an association has obtained judgment against the association, and such judgment, despite the issue of a writ, remains unsatisfied, the judgment creditor may, without prejudice to any other remedy he may have, apply to the court which gave the judgment, for the joinder of the members of the association in their personal capacities as joint judgment debtors in respect of the judgment debt.

            (2) The judgment creditor may recover from the joint judgment debtors the amount of the judgment debt still outstanding from the members on a pro rata basis in proportion to their respective quotas or a determination made in terms of section 35(4):

            Provided that any member who is so required to make a payment to a judgment creditor after he has paid to the association any contribution which he was required to pay to that association in respect of the same debt, shall be entitled to obtain a refund from the association of the amount of the payment so made to the creditor.

            (3) No debt or obligation arising from any agreement between the developer and any other person shall be enforceable against the association.

 

51.     Destruction of or damage to buildings

 

            (1) The building comprised in a scheme shall, for the purposes of this Act, be deemed to be destroyed-

     (a)     upon the physical destruction of the building;

     (b)     when the owners by unanimous resolution so determine and all holders of registered sectional mortgage bonds and the persons with registered real rights concerned, agree thereto in writing; or

     (c)     when the court is satisfied that, having regard to all the circumstances, it is just and equitable that the building shall be deemed to have been destroyed, and makes an order to that effect.

            (2) In any case where an order is made under subsection (1)(c), the court may impose such conditions and give such directions as it deems fit for the purpose of adjusting the effect of the order between the association and the owners and mutually among the owners, the holders of registered sectional mortgage bonds and persons with registered real rights.

            (3) Where the building is damaged or is destroyed within the meaning of subsection (1), the owners may by unanimous resolution, or the court may by order, authorize a scheme-

     (a)     for the rebuilding and reinstatement in whole or in part of the building;

     (b)     for the transfer of the interests of owners of sections which have been wholly or partially destroyed, to the other owners.

            (4) In the exercise of their powers under subsection (3), the owners may pass such resolution or the court may make such order as may be deemed necessary or expedient to give effect to the scheme, in connection with inter alia-

     (a)     the application of insurance moneys received by the association in respect of damage to or the destruction of the building;

     (b)     the payment of money by or to the association or by or to the owners or by or to one or more of them;

     (c)     an amendment of the sectional plan so as to include in the common property an addition thereto or subtraction therefrom;

     (d)     the variation of the quota of any section; or

     (e)     the imposition of conditions.

            (5) An application may, for the purposes of this section, be made to the court by the association or by any owner or by any holder of a registered sectional mortgage bond or a registered lease or by any insurer who has effected insurance on the building or any section therein, or by the local authority.

            (6) Any insurer who has effected insurance on the building or any part thereof (being insurance against destruction of sections or damage to the building) shall, on any application to the court under this section, have the right to intervene in the proceedings.

            (7) The court may, on the application of an association or any member thereof or any holder of a registered real right concerned, or any judgment creditor, by order make provision for the winding-up of the affairs of the association; and may by order, declare the association dissolved as from a date specified in the order.

            (8) The court may, with regard to any application under this section make such order for the payment of costs as it deems fit.

            (9) Where two or more buildings are comprised in a scheme, and only one or part of one of the buildings is damaged or destroyed, the provisions of this section shall apply as if the buildings were one building and part of such building has been damaged or destroyed.

 

52.     Disposal on destruction of buildings

 

            (1) When in terms of section 51 the building comprised in a scheme is deemed to be destroyed and the owners have by unanimous resolution resolved not to rebuild the building,the association shall lodge with the Registrar a notification in the prescribed form of such destruction and a copy of the relevant resolution of the owners as certified by two trustees of the association.

            (2) Upon receipt of such notification the Registrar shall make an entry thereof in the relevant sectional title register.

            (3) When an entry has been made in the relevant sectional title register-

     (a)     the owners shall cease to be separate owners of sections but shall, subject to the provisions of section 51(2), remain co-owners of the land in undivided shares proportionate to the quotas of the respective sections previously owned by them;

     (b)     any sectional mortgage bond, lease or other real right or condition then registered against or affecting a unit, shall be deemed to be converted into a mortgage bond, lease or other real right or condition registered against or affecting the undivided share in the land which formed part of such unit;

     (c)     the land shall revert to the land register; and

     (d)     the sectional title deeds of units which are thus deemed to be destroyed as well as the title deeds regarding any right to an exclusive use area and any right to the extension of a scheme referred to in section 27, together with any mortgage bond over the rights, shall be surrendered to the Registrar for cancellation.

            (4) Upon the reversion of the land to the land register, the Registrar shall-

     (a)     cancel the title deeds referred to in subsection (3)(d);

     (b)     issue to each of the owners of a unit which is thus deemed to be destroyed a certificate of registered title in the form prescribed under the Deeds Registry Act for his undivided share in the land, subject or entitled to such servitudes, mortgage bonds, other real rights and conditions which are applicable to or in respect of such land;

     (c)     make suitable endorsements on any sectional mortgage bond, lease or other real right to reflect the conversion referred to in subsection (3)(b);

     (d)     re-register any sectional mortgage bond, lease or other real right referred to in subsection (3)(b) as a mortgage bond, lease or real right in terms of the Deeds Registry Act;

     (e)     make an endorsement on the schedule referred to in section 12(3)(b) to reflect the reversion of the land; and

     (f)      notify the Director and the local authority of the reversion of the land.

            (5) Upon receipt of the notification that the whole of the land has reverted to the land register, the Director shall cancel the relevant sectional plan.

 

53.     Unencumbered sections destroyed by State or local authority

 

            (1) Where the State or a local authority is the owner of a section in a building which is not encumbered by a mortgage, lease or real right, and such section has been destroyed to give effect to a project or scheme for the benefit of the public, the State or local authority, as the case may be, may, after advising the association of its intention to do so, notify the Registrar to this effect and apply for the cancellation of the relevant sectional title deed.

            (2) An application in terms of subsection (1) shall be accompanied by the owner's copy of the relevant sectional title deed.

            (3) On receipt of such application, the Registrar shall cancel the Deeds Registry's and owner's copy of the relevant sectional title deed and shall make the necessary consequential entries in his records and notify the Director and the local authority accordingly, and thereupon the undivided share in the common property that was held under that sectional title deed shall vest in the owners of the remaining sections in the building proportionately to their respective participation quotas.

            (4) On receipt of a notification referred to in subsection (3) and an amended schedule referred to in section 7 (3)(g), prepared by an architect or land surveyor and to be furnished by the State or local authority, as the case may be, the Director shall amend the original plan and the Deeds Registry copy of the sectional plan to give effect to the cancellation of the sectional title deed referred to in the notification.

 

54.     Valuation of land and buildings and recovery of rates by local authorities

 

            (1) When a local authority causes land and buildings comprised in a scheme to be valued for any lawful purposes, the land and buildings thereon shall, subject to the provisions of subsection (4), be valued as if they were owned by a single owner, and for the purposes of such valuation and all purposes incidental thereto (including an objection to a valuation), the land and buildings thereon shall be deemed to be owned by the association.

            (2) A separate valuation shall be made of the land and the building.

            (3) Subject to the provisions of subsection (4), and section 50, the local authority may recover any rates and taxes levied by it from the association.

            (4) When by any enactment provision has been made for the separate rating of units, each relevant unit shall for the purposes of valuation and the levying and recovery of rates by a local authority be deemed to be a separate entity.

 

55.     Appointment of Sectional Titles Regulation Board

 

            (1) Regulations may be made providing for the appointment of a Sectional Titles Regulation Board to make recommendations to the Minister for the efficient implementation of the provisions of this Act.

            (2) Regulations made under this section shall specify the number of persons to be appointed to the Board, their remuneration and the period of holding office.

 

56.     Power to make rules and regulations

 

            The Minister may by statutory instrument make-

     (a)     rules providing for any matter which under this Act is to be provided for by rules or which otherwise relates to the control, management, administration, use and enjoyment of the sections and the common property of a scheme; and

     (b)     regulations providing for any matter which under this Act is to be provided for by regulations or is to be prescribed or which may be necessary or expedient for giving effect to the provisions of this Act.