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Here are the rules about complexes in real estate that you need to know after the floods of South Africa

The recent catastrophic floods in KwaZulu-Natal have left a trail of death and destruction, with some 4,000 homes destroyed and more than 8,000 damaged.

For homeowners in sub-title complexes, the aftermath of the floods includes uncertainty and fear over whether the main title scheme in which they have invested will cease as a result of the damage or that repairs will have to be carried out – and what they say in these considerations.

According to Section Title Specialist Advocate and BBM Legal Director Marina Constas, the termination of a section title scheme as a result of physical destruction is dealt with in Section 17 of the Section Title Regulation Management Act (STSMA).

“What happens if the unthinkable happens? It is important for owners to know that the scheme is considered ‘destroyed’ if the building or buildings that make up the scheme are actually destroyed.”

Constas said that if the damage is limited to certain sections and areas of common property, the STSMA provides for members of the corporation to decide by unanimous resolution whether the sections that have been destroyed need to be rebuilt and the scheme re-established. , or if it would be useful for the scheme to continue its life without the one, two or five units that no longer physically exist.

“If the members are unable to reach a consensus by unanimous resolution, then any interested party can approach the court for an order on the question of whether the whole building should be rebuilt or restored or only part of it – without destroying the units by the floods. “

Constas said unit owners also have the power to pass a unanimous resolution – or the court can issue an order if they do not agree – regarding a number of other issues related to the destruction of the building.

“These include how insurance money received by the agency should be used and decisions on the payment of money by or to an owner or owners of units,” Constas said.

The owners may also take a decision to adapt the sub-plan of the scheme to provide for an increase in the common property as a result of the destruction of a unit or units or, alternatively, a reduction of the common property.

“In addition, owners have the power to decide to change the participation quota of a section or sections, and they can impose any conditions,” she said.

“There are several people and companies who may have an interest in the dissolution of the legal act – or the end of the settlement of the sectional title – of which not least the insurer of the building or part of ‘ the building is, and the STSMA gives the insurer the right to intervene in the proceedings, “said Constas.


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Here are the rules about complexes in real estate that you need to know after the floods of South Africa

Source link Here are the rules about complexes in real estate that you need to know after the floods of South Africa

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