Sectional title schemes provide an ideal opportunity for developers to reap considerable profits in the real estate market. Such developments can comprise residential units, offices, shops, commercial and industrial units and especially mixed schemes - the possibilities are endless.
The developer plays an essential role in the creation process of a new sectional title scheme. Much of the success of a development depends on his performance during these initial stages.
Developers should pay attention not only to the physical aspects of the scheme but also to their role in creating a viable and harmonious community of owners. Each project is unique and therefore requires, amongst other things, its own set of rules, formula for allocating participation quotas and exclusive use areas.
In practice, prospective developers are usually lay businessmen without the necessary knowledge of their function in the scheme. They therefore need to be assisted by qualified attorneys and conveyancers with expertise in sectional title matters. It is only then that developers and the public can truly take advantage of the numerous opportunities inherent in the sectional title industry. (For an in-depth article on the subject see Van Schalkwyk & Van Der Merwe “A Critical Analysis of the Role of the Developer in Sectional Title Developments” 2008 (2) TSAR 222.)
We hope that this information will be useful to you and should you require any further assistance please do not hesitate to contact us!
This article is courtesy of C & A Friedlander Attorneys.
