CHOOSING BETWEEN SUBDIVISION AND SECTIONAL TITLE: A GUIDE FOR LANDOWNERS

by Taryn Davies Stevens • 3 MIN • 588 Words

Subdivision and sectional title, these are two popular options that, when it comes to land ownership, they not only offer potential returns on property investment but also address the growing demand for housing in certain residential areas. If you're a landowner exploring these options with the intent of property development, this blog provides a concise overview of the processes involved.

SUBDIVISION: DIVIDING AND DEVELOPING

Subdivision involves splitting a property (referred to as an erf) into multiple portions, which are then registered as individual erven. The process can be intricate, with the requirements varying based on location, type of erf, and proposed use of the new erven. Before formally applying for subdivision, it's essential to understand the minimum size requirement for erven in your property's area. A town planner's expertise can help assess the viability of a successful subdivision application.

A land surveyor and conveyancer (property attorney) are necessary before submitting the application, as plans and a conveyancer's certificate are essential supporting documents. Architects may also be involved, especially if you plan to build on the newly subdivided portions, requiring planning approvals.

Once you've submitted the application to the local authority and fulfilled all requirements, they'll consider it in accordance with applicable legislation and municipal by-laws. If approved, the land surveyor prepares subdivision diagrams for submission to the Surveyor General. Once these diagrams are approved, a property attorney and conveyancer handle the necessary documents for lodgement and registration of the subdivision in the Deeds Office. All conditions set by the local authority must be adhered to within a specific timeframe before the subdivision approval lapses.

While subdivision can be time-consuming and costly, meeting the criteria enhances your property's attractiveness to potential purchasers.

SECTIONALISATION: CREATING A SECTIONAL TITLE SCHEME

Sectionalisation involves creating and registering a sectional title scheme on freehold property. This scheme comprises sections and common property, with buildings divided into sections and the rest considered common property. Purchasing property in a sectional title scheme means acquiring a section, a share in the common property, and possibly exclusive use areas like a garden or parking bay.

For a sectional title scheme on your property, a minimum of two sections are required for registration of an approved sectional title plan. Many residential properties already have structures that can be divided into sections for the scheme.

Similar to subdivision, landowners considering a sectional title scheme should seek guidance from a town planner and/or land surveyor. Confirming the property's zoning is critical, especially if selling units in a multi-storey building, as a zoning enquiry might necessitate property re-zoning before proceeding with the sectional title scheme.

After meeting the requirements for a sectional title scheme, a land surveyor prepares sectional plans for approval by the Surveyor General. These plans differ from building plans, as they must be based on actual measurements, requiring existing or nearly completed structures.

Once the sectional plans gain approval, a conveyancer assists with the application to the Registrar of Deeds for various aspects, including opening the sectional title register, registering the sectional title plan, transferring units to purchasers, and ceding exclusive use areas if applicable. The conveyancer also aids in finalizing rules applicable to the scheme, ensuring compliance with relevant legislation.

In conclusion, some properties might qualify for both subdivision and sectionalisation, but the more financially viable option should be chosen. To make an informed decision aligned with your expectations, consult an experienced property consultant and attorney well-versed in the legal requirements for achieving a satisfactory result.

Intro Real Estate, it’s the right choice.

www.introrealestate.co.za // 011 422 3922

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