Exclusive Use Areas

Always ensure that exclusive use areas correspond with the plan or rules of your sectional title scheme!

Exclusive Use Areas

Always ensure that exclusive use areas correspond with the plan or rules of your sectional title scheme!

In preparation for one of our commercial property auctions we had to deal with an interesting case where a building that was sectionalised but all sections were owned by the same owner, did not correspond with the building plans, says Hein Hattingh, MD and legal adviser of in2assets, the commercial property auction firm. The conditions of sale were prepared to be sold as individual units and the entire block as one lot; and absolutely clarity was needed in respect of the sectional title scheme.

It evoked that some of the exclusive use areas were over the years developed and allocated as store rooms and garages to existing flats.

When the building was initially built, and registered as a sectional title scheme, all plans passed and sections were allocated as common use and exclusive use areas.

As in many old buildings space was not an issue and the design left gaps or open spaces under staircases, or between pillars, that in the years to come, were utilised as extra income generators, explains Hattingh. 

In this case, some garages and storerooms were developed on common use areas and public use areas, which were not part of the sectional title scheme, or on any building plans.

The allocation of the additional space was done by an estate agent jointly with the owner and over the years it was assumed that these subject areas, formed part of different units.

Subsequently to these findings, the seller had two options: going back to the drawing board and register the changes in the sectional title scheme of the property, or sell the entire block of flats as one lot.

The auction took place and the property was subsequently sold as one lot achieving a record price.

For more information contact Hein Hattingh hhattingh@in2assets.com

Posted by In2Assets