Imagine you've just purchased a beautiful ground-floor sectional title unit in a secure complex. You love the space, but you dream of enclosing your patio to create an extra sun lounge or home office. So, you speak with the Body Corporate, hire a contractor, and get to work. Months later, you discover that while you followed the rules of the scheme itself, there's a crucial, often overlooked legal step that must be taken to properly register that extension in the Deeds Office. Suddenly, your "little project" is more complicated than you ever expected.
Extending a section (for example, enclosing that patio) increases the unit's floor area and, ultimately, its value. But a larger property also affects the participation quotas for levies and insurance, which is why the extension must be formally registered to comply with the Deeds Registry Act.
Step 1: Body Corporate Approval
In our scenario, the owner meets with the Trustees and requests to enclose the patio. The Trustees schedule an Annual General Meeting (AGM), and the request is put to a vote. A special resolution is required – this means achieving 75% in both the number of votes and the value of those votes (based on participation quotas). Once the AGM approves, the owner is good to go – but only for the Body Corporate portion of the process.
Step 2: Get Professional Plans Drawn Up
Next, the owner (let's call him "Sam") hires an architect or land surveyor. This professional drafts the amending Sectional Plan of extension and recalculates the new participation quotas. These documents are submitted to the Surveyor General for approval.
Step 3: Mortgagee Notifications
When the new participation quota deviates by more than 10%, every Mortgagee (bondholder) in the scheme must be notified via registered post. If no objection is received within 30 days, the mortgage lenders are deemed to have given their consent.
Step 4: Conveyancer's Deeds Office Application
Finally, a conveyancer prepares the Section 24(6) application and gathers the necessary documents:
- The approved amending Sectional Plan (in duplicate).
- A certificate confirming the extent to which the participation quota has changed (more or less than 10%).
- A SARS Transfer Duty Receipt corresponding to the new size of the section.
- The original Title Deed and Mortgage Bond (if applicable) for endorsement.
Upon successful lodgement and registration, the Deeds Office issues the updated records.
Once the extension is officially registered, the Body Corporate adjusts the levies. The newly extended section will pay slightly higher levies due to its bigger share in the scheme, while other owners may see a minor decrease in theirs. Insurance coverage requirements also change to reflect the new dimensions.
Delaying this process can lead to headaches. An owner who extends without registering risks legal action from the Body Corporate if the application isn't finalized within 90 days of completing the construction. Moreover, prospective purchasers are advised to compare a section's physical size with its Deeds Office records. If an enclosure or extension isn't properly registered, it can cause issues down the line, from resale complications to insurance shortfalls.
The Bottom Line
Much like building that enclosed patio is more than simply installing windows and bricks, legally extending a sectional title section involves more than just Body Corporate consent. If you or someone you know is planning any alterations, remember:
- Get Body Corporate approval (and watch for that special resolution).
- Have a professional draft the necessary plans and adjust participation quotas.
- Notify the Mortgagees if quotas deviate by more than 10%.
- Work with a conveyancer to prepare and lodge Deeds Office documentation.
By following these steps, you'll ensure your dream extension is not only built well but also recorded well, saving you from any unpleasant surprises in the future.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
