Diaz Hotel and Resort (Proprietary) Limited v Body Corporate of the Vista Bonita Sectional Titles Scheme No SS 357/2008 and Another (15175/2019) [2021] ZAWCHC 180 (31 August 2021)
This judgment deals with the sticky scenario that arises when a developer (or owner) sells his last unit in a sectional title scheme without also transferring the rights he had to exclusive use areas. The Law states that once such owner loses membership of the body corporate, because he no longer is an owner of a unit in the scheme, the rights to the exclusive use areas “vest” with the body corporate. But what does this mean? Do these areas “belong” to the body corporate without more? No, says the Court. The specific circumstances play a role and a Registrar of Deeds must consider the circumstances before allowing a cession of rights to the body corporate