Increase in floor area

26 November 2015

When applying the provisions of section 24(6)(d) of the Sectional Titles Act 95 of 1986, which reads as follows:

"any sectional mortgage bond to which the section may be subject, together with –

(i) a certificate by a land surveyor or architect stating that there is not a deviation of more than 10 percent in the participation quota of the relevant section as a result of the extension; or

(ii) if there is a deviation of more than 10 percent, a certificate by a conveyancer stating that the mortgagee of each section in the scheme has consented to the registration of the sectional plan of extension of that section; and "

it is imperative for a practitioner to calculate the increase in floor area of the section extended to determine whether the bondholders over other sections in the scheme need to consent, alternatively whether the land surveyor needs to provide a certificate that the extension of the section does not exceed 10% in the participation quota of the relevant section.

The formula used for the calculation is:

"the New Participation Quota minus The Old Participation Quota divided by the Previous Participation Quota x 100."

The formula is best illustrated by way of the following scenario:

Where the Participation Quota of a section was 49, 5702 and after extension the Participation quota is increased to 58, 8785.The increase in Participation Quota is 9, 3083. The increase is divided by the former participation quota and multiplied by 100, the percentage increase is thus 18, 7780 which is more than the prescribed 10%.

The result is that the bondholders of bonds over other sections will thus have to consent, and the conveyancer concerned will have to provide the Registrar of Deeds with a certificate in this regard.

It is trusted this will assist when applying the said section.

Allen West
Macrobert attorneys


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