In the event of pursuing a sectional title development with the opportunity to increasing the number of units on that stand, with obvious financial benefits and returns, there is however a few very important steps, besides the timeframe and other important factors, to be followed to initiate and complete such a process.
To achieve / pursue a sectional title development, the owner will need to approach the designated land surveyor (developer) to draft a sectional plan of extension which must be approved by the local Surveyor General Office and registered with the local or relevant Registrar of Deeds. As a rough guide of what to expect during this process, the following must be lodged with the Registrar of Deeds:
An application under section 11(1) of the Sectional Titles Act 95 of 1986.
The title deed of the land/property.
Two copies of the Sectional plan.
Schedule of conditions in terms of section 11(3)(b) of the Sectional Titles Act 95 of 1986 read with regulation 10(3).
Rules for the scheme.
Documents for the extension of the scheme.
Consent by mortgagee and mortgage bond.
Certificate of real or exclusive use areas – if required.
Certificate of real right of extension – this allows the developer the right to extend the scheme right by erecting buildings for a stipulated period of time.
Certificates of registered title.
Bear in mind that the developer can only begin construction once funding has been secured. The developer can then transfer the units to a third party and this will establish the body corporate.
Also, you as the developer will timeously need to engage one or more estate agents that can start marketing your sectional title development and seek potential buyers for you.
If you are serious about considering a sectional title development, it may be prudent, before you start any processes or incur costs, to have a discussion with your property attorney. They can assist you with the process and also help identify the appropriate persons you would need to engage as set out above, and so help you make your dream development a reality.
