Termination of sectional title

Often sectional title owners no longer wish to continue as sectional title owners, but would prefer, for some or other reason, to once again become freehold owners of the land on which the scheme is established. To achieve this, the provisions of section 17 of the Sectional Title Schemes Management Act 8 of 2011 and 49 of the Sectional Titles Act 95 of 1986, respectively can be invoked. 

Section 17 provides that the building(s) comprised in a scheme will be deemed destroyed, under the following circumstances: 

  • The physical destruction thereof; 
  • When the owners by unanimous resolution, and the holders of real rights so determine and agree: 
    • Should owners of sections by unanimous resolution resolve that the buildings are deemed to be destroyed, and all holders of sectional mortgage bonds and other holders of real rights agree thereto in writing, the provisions of section 49 can be invoked to revert the land back to the land register. 

In terms of regulation 32, read in conjunction with section 49(1), the body corporate must lodge with the registrar of deeds a notification drafted in accordance with prescribed form Y to the regulations together with a copy of the unanimous resolution of the owners, certified by two trustees of the body corporate. 

Together with the notification and resolution the following must also be lodged: 

  • The written agreement of all registered sectional mortgage bonds and the agreement of holders of registered real rights; if any. 
  • All the title deeds of the sections. 
  • All title deeds of registered real rights registered over the sections and common property; if any. 
    • The title of the real right of extension, if any. 
    • All certificates of real rights of exclusive use areas; if any. 
    • All registered sectional mortgage bonds; if any. 

Simultaneously and in the same batch a certificate of registered title must be applied for and issued in accordance with section 43A (1) of Act 47 of 1937 and drawn in accordance with prescribed form SS to the Deeds Registries Act. The certificate of registered title will be issued in respect of each former sectional title owner, in respect of his/her undivided share in the land. 

Should the free co-owners of the land decide that they require full ownership of a defined portion of the land, either the provisions of section 24(2) or section 26 of the Deeds Registries Act 47 of 1937 may be followed. Usually the co-owners enter into a partition agreement whereby each former co-owner now becomes a full owner of a defined portion of the land, provided all the requirements for the sub-division of the land have been complied with. 

It is trusted that the above has shed more light on the termination of a sectional title scheme and the reversion of the land back to the land register. There are numerous variations to the theme, for instance where only certain of the buildings comprising the scheme are deemed to be destroyed, however, that being another topic. 

Allen West
Property Law Consultant
HANNES GOUWS AND PARTNERS INC.
Attorneys, Notaries & Conveyancers
Tel: 012 321 1008 
Cell 078 7655928
E-mail: allen@hannesgouws.co.za
Author of The Practitioners Guide to Conveyancing and Notarial Practice 3rd Edition

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