Extensions to units in a sectional title scheme that owners effect “informally” may have dire consequences.
The Sectional Titles Act (1986) (“the Act”) defines an extension as any variation that has the effect of “extending the boundaries or floor area of the section”. Therefore, the enclosing of a balcony or a patio located on unregulated common property or an exclusive use area, increases the floor area of the section. An owner that de facto incorporates his section into an adjoining property that does not form part of the scheme, not only acts illegally, but also increases the floor area of his section. In turn, if the floor area of a section is increased, it increases the participation quota (“PQ”) of that section. The PQ determines the levy contribution and therefore an increase in the floor area will increase the PQ and consequently the levy.
The latter increase of the PQ will also increase the owner’s voting power.
All such increases are illegal and can only be legalised by following the prescribed statutory process.
If the correct procedure is not followed, it can result in the construction being deemed an illegal extension within the Community Scheme.
The body corporate must, in terms of section 5(1)(h) of the Sectional titles Schemes Management Act 2011, on application by an owner and upon special resolution by owners, approve the extension of boundaries or floor area of a section.
The following are some of the consequences of illegal extensions:
- The sectional title plan must be amended and registered with the Surveyor General and is deemed illegal unless the proper procedure is followed.
- The participation quotas are incorrect and decisions of the body corporate may be invalid.
- The scheme may not be properly insured because insurance premiums need to be adjusted in accordance with the extensions.
- Defaulting owners are not paying the correct levies to the detriment of other owners.
A body corporate that encounters these problems must obtain specialised legal assistance to deal with various matters, such as the interim increase of defaulting owners’ levies, applications to CSOS for variation of the PQ’s and formal amendment of the sectional title plan.
Our Property Management in-house legal expertise can efficiently and promptly deal with all such issues.