𝗧𝗵𝗲 𝗧𝗵𝘂𝗿𝘀𝗱𝗮𝘆 𝗖𝗼𝘂𝗿𝘁𝗿𝗼𝗼𝗺 𝗖𝗹𝘂𝗯 🏛️📡 Welcome back to The Thursday Courtroom Club! This week, we unpack a legal dispute that’s got developers, body corporates, and property owners buzzing. Step into the courtroom and weigh in on a clash over rights, rentals, and reserved property! 𝗖𝗮𝘀𝗲 𝗙𝗶𝗹𝗲: 𝗔 𝗗𝗲𝘃𝗲𝗹𝗼𝗽𝗲𝗿’𝘀 𝗖𝗹𝗮𝗶𝗺 𝘁𝗼 𝗖𝗼𝗺𝗺𝗼𝗻 𝗣𝗿𝗼𝗽𝗲𝗿𝘁𝘆 𝗜𝗻𝗰𝗼𝗺𝗲 𝗧𝗵𝗲 𝗦𝗰𝗲𝗻𝗮𝗿𝗶𝗼:📜 In a sectional title scheme in KwaZulu-Natal, a developer enters into a lease agreement with a cellular provider for a mast on the property, earning rental income. When the sectional title scheme is registered, the Body Corporate claims this income belongs to the unit owners as the mast stands on common property. Here’s the twist: 🔹 The developer argues that they reserved a real right of extension under the Sectional Titles Act, which gives them control over that part of the property, including its income. 🔹 The Body Corporate insists that the reserved right is for development only and does not allow the developer to lease the property or retain the income. 𝗧𝗵𝗲 𝗔𝗿𝗴𝘂𝗺𝗲𝗻𝘁𝘀: 𝗧𝗵𝗲 𝗗𝗲𝘃𝗲𝗹𝗼𝗽𝗲𝗿 𝘀𝗮𝘆𝘀: 1️⃣ Reserved rights under the Act allow them to lease and benefit from the property until the right is fully exercised and registered. 2️⃣ The income predates the sectional title scheme’s registration, so it should remain theirs. 𝗧𝗵𝗲 𝗕𝗼𝗱𝘆 𝗖𝗼𝗿𝗽𝗼𝗿𝗮𝘁𝗲 𝘀𝗮𝘆𝘀: 1️⃣ Reserved rights are for development purposes, not for leasing or commercial gain. 2️⃣ The rental income from the mast belongs to the Body Corporate for the collective benefit of all owners. 𝗬𝗼𝘂𝗿 𝗧𝘂𝗿𝗻 𝗶𝗻 𝘁𝗵𝗲 𝗝𝘂𝗱𝗴𝗲’𝘀 𝗖𝗵𝗮𝗶𝗿🧐 Does the developer have a legitimate claim to the lease income, or should the Body Corporate take control? ✅Cast your vote in the poll and let us know your reasoning in the comments! 𝗖𝘂𝗿𝗶𝗼𝘂𝘀 𝗮𝗯𝗼𝘂𝘁 𝘁𝗵𝗲 𝗿𝗲𝗮𝗹 𝗰𝗮𝘀𝗲?📖 This scenario is based on 𝗧𝗵𝗲 𝗕𝗼𝗱𝘆 𝗖𝗼𝗿𝗽𝗼𝗿𝗮𝘁𝗲 𝗼𝗳 𝗦𝗮𝘃𝗮𝗻𝗻𝗮𝗵 𝗣𝗮𝗿𝗸 𝘃 𝗕𝗿𝗮𝗶𝗻𝘄𝗮𝘃𝗲 𝗣𝗿𝗼𝗷𝗲𝗰𝘁𝘀 𝟭𝟭𝟰𝟳 𝗖𝗖 ([2011] ZASCA 239). It’s a fascinating look into the limits of reserved rights under the Sectional Titles Act. Feel free to dive into the judgment for more details! 💡 𝗧𝗵𝗲 𝗧𝗵𝘂𝗿𝘀𝗱𝗮𝘆 𝗖𝗼𝘂𝗿𝘁𝗿𝗼𝗼𝗺 𝗖𝗹𝘂𝗯 is brought to you by 𝗝𝗼𝗻𝗸𝗲𝗿 𝗩𝗼𝗿𝘀𝘁𝗲𝗿 𝗜𝗻𝗰., specialists in property law and sectional title governance. P.S. Have a legal conundrum? Let’s connect! #attorneys #paarl #propertylaw
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