Property Development Schemes Flashcards
1
Q
Sectional Title Schemes
A
- Sole owner of a unit
- Joint owner of common property
- Specific owner of exclusive use area
Participation Quota proportial to Univided Shares
2
Q
Sectional Title Register
A
Submitting a draft of the sectional plan to the surveyor general for approval and then registered by the Registar of Deeds
3
Q
Body Corporate
A
The developer (as long as they own a unit) and every other tenant that owns a unit on the property
4
Q
Trustees
A
- Minimum of 2 trustees per shared property
- Majority of them must be the owners
- Employess of the body corporate and managing agents may not be trustees
- If authorised, trustess may appoint a managing agent
5
Q
Exclusive Use Areas
A
- Can be sold to other tenants/owners of sectional units only
- Exclusive use rights can also be mortgaged
6
Q
Sale of Proposed Sectional Units
A unit still waiting for approval and registration
A
- No consideration or gain of interest by the seller is allowed, unless given to an attorney or EA in trust
- Cannot promise repayment should the unit not be registered
- Sectional title resgister must be opened no later than 5 years after the date of contract
- The Preemtive rights (90 Days) of tenants to purchase units before the meeting was held/submitted the draft sectional plans
Alienation of Land Act
7
Q
Sale of Existing Units
A
- Refer to the prememtive rights of the tenants when developer is the seller
- Certificate of complete payments signed by 2 trustees and managing agent must be produced before a non-developer may sell their exisitng unit
8
Q
Information to Obtain when considering buying a sectional Unit
A
- The body corporate’s provisions for maintainence
- Amount of levy payable and if any future increases are contemplated
- Prescribed management rules and goevening rules of the scheme
- Names of trustees (and managing agetn where applicable)
Info can be gained by asking the trustees, managing agent or seller
