1
LECTURE 2
ESTABLISHMENT OF SECTIONAL TITLE SCHEME
1. What are the requirements for the land?
a. Sectional titles act: technical matter
b. Sectional titles scheme management act: management issues
In an exam can just say STA or STSMA – he knows what those
are
2. What are the requirements of the building?
DEFINITIONS
LAND [LAWSA 316]
What is the land:
1. STA s 1: the ‘land’ is as indicated in the sectional plan
2. STA s 1: the ‘developer’ ia the registered owner, in area of
jurisdiction of local authority
3. STA s 1: the ‘local authority’ is according to the Constitution s
151: municipalities
the municiplaities are the local authorities
Constitution: s 151(1) Status of Municipalities
“The local sphere of government consists of municipalities,
which to be established for the whole of territory of Republic.”
Why? condonation by local authority if scheme contravenes
planning statutes
every piece of land in SA is under a local auth (municipality)
NB because every piece of land must be approved or
condone by the LA
4. STA s 4(2): consolidated or notarially tied
If there are 2 pieces of land, they must be notarially tied
This means that at the deeds registry, there is a note
indicating that the 2 are linked
5. STA S 26: addition of land: acquired by body corporate
You can also add land by unanimous written consent of all the
owners
REQUIREMENTS (land):
1. Land must have registered owner (not leasehold land)
a. He must become the owner, not leaser
b. You cannot have a sectional title of a lease
2. Location: in local authority: municipalities (no longer: mountainous
areas)
a. Must be in the jurisdicition of a local authority (meaning all the
municipalities)
b. all pieces of land must be under a LA, according to Const
, 2
c. Before Const, there were certain natural areas eg. Mountains
or seas that were not under LA, but this is no longer true
3. Agricultural land: Subdivision Agricultural Land Act 70/1970:
uneconomic subdivisions not allowed: consent of Minister
a. You cannot have a sectional title scheme on agricultural land
because of the subdivision agricultural land act
4. Two parcels: consolidation or notarially tied
a. Done at deeds registry
5. Subdivision if development on only part of land
a. If it is only on a part of the land, so that the developer has
bought the whole land but wants to erect the building on a
part of it, then he must subdivide the land
6. Land under s. 26
a. See later
b. Owned by everybody in undivided parts
BUILDING [LAWSA 317]
What is a building:
1. STA s 1: ‘Building’: must be of a permanent nature
must have fixed foundation
cannot use non-combustible materials
not: caravan, tent, prefabricated building
2. STA s 1: ‘developer’: building or buildings: 2 or more units
If it is a building, it must be divided into at least two units (or
sections)
3. STA s 2(a): more than one building: building itself a section
If there is more than one building, then the building itself can be a
section eg. Chalets,
rondawels
Example of USA legislation:
UCIOA: s 1-103: ‘real estate’: "parcels with or without upper or lower
boundaries, and spaces that may be filled with air or water" caravan sites,
mooring berths for yachts at marinas, pockets of airspace; Canada: survey
markers
REQUIREMENTS (building):
1. Must be of a permanent nature: not tent, prefabricated building
2. Must be divided into 2 sections; or more than 1 building, each
building a section: rondawels, chalets
3. Must be a building: not caravan park; mooring spaces (in South Africa
only as exclusive use areas)
4. Must be capable of residential or non-residential use: not neon sign,
monument
eg. In America, they can put a neon sign to advertise that there is a
supermarket at the back of the building, and the sign itself will be a
section that can be sold to someone (for advertising)
LECTURE 2
ESTABLISHMENT OF SECTIONAL TITLE SCHEME
1. What are the requirements for the land?
a. Sectional titles act: technical matter
b. Sectional titles scheme management act: management issues
In an exam can just say STA or STSMA – he knows what those
are
2. What are the requirements of the building?
DEFINITIONS
LAND [LAWSA 316]
What is the land:
1. STA s 1: the ‘land’ is as indicated in the sectional plan
2. STA s 1: the ‘developer’ ia the registered owner, in area of
jurisdiction of local authority
3. STA s 1: the ‘local authority’ is according to the Constitution s
151: municipalities
the municiplaities are the local authorities
Constitution: s 151(1) Status of Municipalities
“The local sphere of government consists of municipalities,
which to be established for the whole of territory of Republic.”
Why? condonation by local authority if scheme contravenes
planning statutes
every piece of land in SA is under a local auth (municipality)
NB because every piece of land must be approved or
condone by the LA
4. STA s 4(2): consolidated or notarially tied
If there are 2 pieces of land, they must be notarially tied
This means that at the deeds registry, there is a note
indicating that the 2 are linked
5. STA S 26: addition of land: acquired by body corporate
You can also add land by unanimous written consent of all the
owners
REQUIREMENTS (land):
1. Land must have registered owner (not leasehold land)
a. He must become the owner, not leaser
b. You cannot have a sectional title of a lease
2. Location: in local authority: municipalities (no longer: mountainous
areas)
a. Must be in the jurisdicition of a local authority (meaning all the
municipalities)
b. all pieces of land must be under a LA, according to Const
, 2
c. Before Const, there were certain natural areas eg. Mountains
or seas that were not under LA, but this is no longer true
3. Agricultural land: Subdivision Agricultural Land Act 70/1970:
uneconomic subdivisions not allowed: consent of Minister
a. You cannot have a sectional title scheme on agricultural land
because of the subdivision agricultural land act
4. Two parcels: consolidation or notarially tied
a. Done at deeds registry
5. Subdivision if development on only part of land
a. If it is only on a part of the land, so that the developer has
bought the whole land but wants to erect the building on a
part of it, then he must subdivide the land
6. Land under s. 26
a. See later
b. Owned by everybody in undivided parts
BUILDING [LAWSA 317]
What is a building:
1. STA s 1: ‘Building’: must be of a permanent nature
must have fixed foundation
cannot use non-combustible materials
not: caravan, tent, prefabricated building
2. STA s 1: ‘developer’: building or buildings: 2 or more units
If it is a building, it must be divided into at least two units (or
sections)
3. STA s 2(a): more than one building: building itself a section
If there is more than one building, then the building itself can be a
section eg. Chalets,
rondawels
Example of USA legislation:
UCIOA: s 1-103: ‘real estate’: "parcels with or without upper or lower
boundaries, and spaces that may be filled with air or water" caravan sites,
mooring berths for yachts at marinas, pockets of airspace; Canada: survey
markers
REQUIREMENTS (building):
1. Must be of a permanent nature: not tent, prefabricated building
2. Must be divided into 2 sections; or more than 1 building, each
building a section: rondawels, chalets
3. Must be a building: not caravan park; mooring spaces (in South Africa
only as exclusive use areas)
4. Must be capable of residential or non-residential use: not neon sign,
monument
eg. In America, they can put a neon sign to advertise that there is a
supermarket at the back of the building, and the sign itself will be a
section that can be sold to someone (for advertising)
