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Cape Registrar's Circular 02/2016

1 December 2016

Cape Town Registrar’s Circular No 2 of 2016 - Please note this circular has been withdrawn and replaced by CT Registrar's Circular No 3 of 2016

Purpose: The effect of the Sectional Titles Schemes Management Act 8 of 2011 (hereinafter referred to as the “Act”) on Deeds Office practices and procedures. This circular should be read with Chief Registrar's Circular No 13 of 2016

1. Body Corporate – Form W

  1. A body corporate is now established in terms of section 2 (1) of the Act and no longer in terms of section 36 (1) of the Sectional Titles Act, 95 of 1986.
  2. A Form “W” must be lodged in triplicate and be lodged in a separate cover with the first transfer of a section to an owner in a sectional scheme.
  3. The preamble of the Form “W” must refer to the establishment of the body corporate in terms of section 2 (1) of the Act.
  4. Examiners must make an office note on the deed cover containing the Form “W” as follows:
    “Final Check, forward Form ‘W’ to the Chief Ombud.”
  5. Final Check Section must forward a signed Form “W” to the Chief Ombud and file the second original in the sectional title file. The third original will be scanned and delivered.
  6. The current practice regarding the fees, coding, linking in the batch and registration of the Form “W” must continue.

2. Sectional Title Rules

  1. The Rules of a sectional title scheme are now regulated by section 10 of the Act. Section 35 of the Sectional Titles Act, 95 of 1986 has been repealed.
  2. In terms of Section 11 (3) (e) as amended of the Sectional Titles Act, 95 of 1986, an original certificate by the Chief Ombud, must be lodged with the opening of a scheme, stating that the rules contemplated in section 10 of the Act have been approved. This applies regardless of whether or not there was an amendment, repeal, substitution, etc of the rules – see enclosed letter by Chief Ombud dated 28 October 2016.
  3. The aforesaid certificate must be lodged with the application for the opening of the scheme as a supporting document. The rules contained in Annexures 1 and 2 of the regulations to the Act or any amendment thereto will henceforth not be filed in a sectional title file in the Deeds Office.
  4. Management or conduct rules which confer rights of exclusive use and enjoyment of parts of common property upon members of the body corporate, are now regulated by section 10 (7) and 10 (8) of the Act and will no longer be filed in this offices since section 27A of the Sectional Titles Act, 95 of 1986 is now being repealed.
  5. It is now the responsibility of the body corporate to keep a copy of all rules (section 10 (6) of the Act refers) and any amendment, substitution, etc. of the rules will no longer be filed at the Deeds Office since section 35 of the Sectional Titles Act is now repealed.

3. Section 15B (3) Certificates

  1. The Section 15B (3) certificate must be adapted to refer to the body corporate being established in terms of section 2 of the Act. See also paragraph 3.3.3 of Chief Registrar’s Circular 13 of 2016.

Cape Town Registrar's Circular No 2 of 2016 and Chief Ombud letter

Reader Comments: 1
Dudley Lee 01/12/2016:

Paragraph 2.2 of the circular is not in line with CRC 13/2016. A certificate by the Ombud is not required if the conditions in annexures 1 and 2 of the regulations to Act 8/2011 apply to a scheme. It would be really silly for the Ombud to have to approve statutory rules. The circular added the words "..or not..." in the cursive statement at the end of paragraph 2.2 of RC2/2016, which words were not contained in the letter by the Chief Ombud dated 28 October 2016 to which the circular alludes.

The requirement for a certificate by the Ombud when the statutory rules apply creates an untenable situation at the moment.

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