the sectional titles amendment bill
Posted 1 June 2006

It also proposes an amendment to the definition of 'sectional mortgage bond' in order to extend the registration of sectional mortgage bonds to exclusive use areas and undivided shares in exclusive use areas.

The proposed amendment also seeks to harmonise the periods between registered and unregistered leases or subleases and eliminates the perception that a short term lease is receptive to the registration of a sectional mortgage bond.

Section 15B(5) grants to the joint owner the right to apply to the registrar of deeds for a certificate of registered sectional title in respect of such owner’s undivided share in the unit. In view of the connection between exclusive use areas and their relevant units, clause 2 of the Bill proposes that this right also be extended to the joint holder of a right to an exclusive use area or a right referred to in section 25(1) of the Act, i.e. the right to erect, for his personal account, a further building or buildings, a horizontal or vertical extension of an existing building on a specified part of the common property. The developer has the right to divide the building(s) into a section(s) and common property and to confer the right of exclusive use over parts of the common property upon the owner(s) of the sections. It is also proposed that joint owners may apply either for a registered sectional title or a certificate of real right.

Section 26(1) of the Act empowers the body corporate to purchase land to extend the common property. Clause 3(a) of the Bill seeks to empower the body corporate to also acquire land otherwise, for example, by donation, exchange or bequest.