Based on the communication from City of Johannesburg, dated 11 March 2021, the intention of the City when drafting the Johannesburg Municipal Planning By law, 2016 and more specifically section 53 thereof, was to ensure compliance with the City’s Land Use Scheme and the provisions of this By law when registering a sectional title scheme on a property.
Thus a section 53 certificate needs to be called for in the following instances:
- On opening of sectional title register.
- When real right to extend is reserved by the developer simultaneously with the opening of a sectional title register.
- When real right to extend is reserved by the developer or body corporate subsequent to the opening of the sectional title register. Please note that on the exercise of right of extension the Deeds Registry need not be furnished with the section 53 certificate if it was lodged when such right was reserved.
- When real right was reserved but for any reason has lapsed and the developer or body corporate wants to extend the scheme a section 53 certificate needs to be lodged.
- When the additional land is acquired to extend the scheme.
- On subdivision and consolidation of a sections.
Section 15B (3) Certificates
There are two clauses in the Section 15B (3) certificate which are necessary in transfer pursuant to a sale:
(i) all monies paid to date of registration; and
(ii) a real right of extension exists (or not) and if so is disclosed (or not, but the purchaser has elected not to cancel the sale).
Various other clauses have been added for historical reasons, but no longer serve any purpose; e.g. no restrictive conditions in the section 11(3) (b) certificate; property is rated by the municipality; no EUAs and transferor is/is not a developer etc.
These additions are to be ignored.
Where a rates clearance certificate has two dates of issue which are not identical, the date of lapse is worked out from the later of the two. The time given is sixty working days excluding the date of issue but including the date for registration. However, when the 60th day is a Saturday, the last date for registration is the preceding Friday. When the 60th day falls on a Sunday or public holiday other than a Saturday, the last date is the next working day.
Sales in insolvency
The rule that liquidators must prove that a company is unable to pay its debts if a property is sold by them without cancelling the bonds does not apply to trustees of an insolvent natural person or trust.
Form UU to the Deeds Registries Act states that:
“No mention need be made of the diagram/general plan or the number of the diagram/general plan if not mentioned in the prior deed.”
It came into effect on 1 April 1982. There is therefore no legal basis for requiring a section 4(1) (b) application for amendment of every title deed to a portion which has no diagram or plan number of that title. A section 4(1) (b) should be asked for only where it is clear that the subdivision took place prior to 1 April 1982 and the diagram or plan number was erroneously omitted (see RC 1/1982).
Note that whenever a praedial servitude is created all affected title deeds must be endorsed.
The above is derived from a Notice to Examiners issued earlier this year (see Notice 7 of 2021).
Should you require more information, please do not hesitate to contact us.
TONKIN CLACEY PRETORIA
012 346 1278