Croxford Trading 7 (Pty) Ltd and Another v The Body Corporate of the Inyoni Rocks Cabanas Scheme no ss1/1978 (174/10) [2011] ZASCA 27 (18 March 2011)

Croxford Trading 7 (Pty) Ltd and Another v The Body Corporate of the Inyoni Rocks Cabanas Scheme no ss1/1978 (174/10) [2011] ZASCA 27 (18 March 2011)

The Supreme Court of Appeal held that the developer's right of extension under the Sectional Titles Act 66 of 1971 was not transferable once the developer disposed of its interest in the common property. The 1993 Amendment to the Sectional Titles Act 95 of 1986 did not dispense with the requirement of ownership for the exercise or transfer of the right of extension acquired under the 1971 Act. The language of the amendment preserved the original requirement that the right of extension must be exercised as if the 1971 Act had not been repealed, meaning the developer must retain ownership of a unit in the scheme. The purported transfer of the right of extension to the first appellant was...

Citation
[2011] ZASCA 27
Parties
Appellant: Croxford Trading 7 (Pty) Ltd; Appellant: Errol John Henty Senekal; Respondent: The Body Corporate of the Inyoni Rocks Cabanas Scheme no ss1/1978
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
18 March 2011
Case Number
174/10
Procedural Posture
Civil Appeal / Appeal From Kwa Zulu Natal High Court (pietermaritzburg)
Outcome
Appeal dismissed with costs.
Judges
Brand, Maya, Cachalia, Shongwe, Petse
Legal Topics
Sectional Titles Act, Right of Extension, Transfer of Real Rights, Declaratory Relief
Land and Property Civil Procedure Sectional Titles Act Right of Extension Transfer of Real Rights Declaratory Relief

Case Brief

Summary, issues, holding and outcome

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Parties

Croxford Trading 7 (Pty) Ltd

Appellant

Errol John Henty Senekal

Appellant

The Body Corporate of the Inyoni Rocks Cabanas Scheme no ss1/1978

Respondent

Procedural Posture

Civil Appeal / Appeal From Kwa Zulu Natal High Court (pietermaritzburg)

Legal Issues

  1. 1 Whether a developer's right of extension under the Sectional Titles Act 66 of 1971 is transferable after the developer disposes of its interest in the common property.
  2. 2 Whether the 1993 Amendment to the Sectional Titles Act 95 of 1986 dispensed with the requirement of ownership for the exercise or transfer of the right of extension acquired under the 1971 Act.
  3. 3 Whether the registration and subsequent transfer of the right of extension to the first appellant was valid.

Ratio Decidendi

The Supreme Court of Appeal held that the developer's right of extension under the Sectional Titles Act 66 of 1971 was not transferable once the developer disposed of its interest in the common property. The 1993 Amendment to the Sectional Titles Act 95 of 1986 did not dispense with the requirement of ownership for the exercise or transfer of the right of extension acquired under the 1971 Act. The language of the amendment preserved the original requirement that the right of extension must be exercised as if the 1971 Act had not been repealed, meaning the developer must retain ownership of a unit in the scheme. The purported transfer of the right of extension to the first appellant was...

Court Disposition

Appeal dismissed with costs.

Orders

  • The appeal is dismissed with costs.