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CaseLaw
CaseLaw, Attorney
Category: South Africa Law
Satisfied Customers: 1290
Experience:  BCom; LLB; Masters in Law
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Can body corporate in a buildings of 105 flats own fixed

Customer Question

Hi .Can body corporate in a buildings of 105 flats own fixed properly ...described as Section 16 in sectional scheme known as Belmont Arcade scheme no 92/1978?
And investment
Herald investment share Block ptyLtd
With ordinary shares at cost 9.690
Loan Acount 4.445
The Herald Investments PTY Limited which own also one flat .
It seem that this company has 2 entity and direct on ?
It is one blok of flats in Durban
Submitted: 1 year ago.
Category: South Africa Law
Expert:  CaseLaw replied 1 year ago.

Hi there,

I'm afraid that I don't actually know what you're asking. Please won't you explain your question in a little more detail?

Thanks

Customer: replied 1 year ago.
Im looking at annual financial statement of body corporate of Belmont Arcade scheme no 92/1978.
....fixed property
At cost 1993
The fixes properly is described as Sections 16 in the sectional title schemes know as Belmont Arcade at R17 000
This is block of 106 flats ....
Customer: replied 1 year ago.
Also
3: investmentHerald Investment Share Block Pty Ltd
5 ordinary shares at cost .........9.690
Loan account ............................4.445
The flats are sectional titles
Customer: replied 1 year ago.
Thanks .The are some substituted rules not submitted to Registrar....section 1 converted back to share block ...indefinite use and same entity holding all shares for the time beeing ...I'm totally confused .
Expert:  CaseLaw replied 1 year ago.

Hi there and thank you for your question,

If you're asking whether a body corporate is empowered to own property in it's own name, then YES, it is.

The body corporate is an association of members with a constitution, and has the legal status to sue, and be sued, and also to hold property in it's own name - including shares and immovable property.

That would mean that if the body corporate purchased a flat in the building, and shares, that would be fine.

Typically though a body corporate doesn't have enough money to buy all of these things (especially a flat) but they would have spare funds that the body corporate could invest.

If my answer hasn't answered all of your questions, please send me a REPLY with follow up questions so that I can continue to assist you in this same thread for as long as you need. Let me know if you need more advice - don't just rate my answer as "bad".

If my are HAPPY with my answer then please click one of the STAR ratings or the SMILEY FACES to rate my answer!

Good luck and best regards,

CaseLaw

Please note: This answer does not create an attorney-client relationship. Please consult a local attorney in person for legal advice. This information is being provided so you can better discuss legal matters with your attorney.

Expert:  CaseLaw replied 1 year ago.

Hi there again,

I hope that you understood the above advice and that it was useful? Please leave positive feedback for me.

If you have a further question please ask it?

Regards

CaseLaw

Customer: replied 1 year ago.
Thank you for the replay .
My understanding of S/T and S/B is basic and Sectional Tile Handbook (G. J Paddock ) as the reference .
I have a specific "real life situation" where I'm trying to understand the structure in the property I own shares and bought 15 yrs ago .
It appears that ST register was open as 2 sections .
section 1 and section 2 .
Section 1 consist of 33 share blocks and all parking in the bounding.
Section 2 is divided into 105 flats .
section 1 is optically smaller but is 53pq
Section 2 is biger but is 48pq .
It was explained to me that Section 1 consist of all the parking and all the ramps to give justification to beeing 53pq and retaining control of the residential section .From the look of it and what is written in financial statments the Body Corporate own 1 flat and Investment which is Share Block .Section 1 is the Investment Share Block .
It appears to be the case as the share allocations are identical .
From the wording of the Financial Statements ......from the time of conversion in to Share Block Company ....
It is only one rational explanation that Section One which is part of S/T was converted back to Share Block Company .
From the look of it is now Investment own by Body Corporate together with the flat.The annual financial statments have been prepared on the historical cost basis.
No depreciation is provided on the buildings .
Equipment is written off against income on acquisition .
Body Corporate expenses include Ground rental ?
I bough a Share Block in Sectional Title Development which is freehold .
I was unable to take transfer to ST when I requested it years ago .
The previous Managing Agents left with documentations and the Body Corporate is always at war with the section one Herald Investment Share Block .
Question :
Who to approach with the view to obtain all the relevant Documents from the Deeds Office .
2.Can I as the owner of Shares in Section 1 which is Share Block obtain revelant documents from Deed Office myself .
I can't get any help from the Managing Agents (changing from time to time )
3.The is indefinite use which has been passed .No explanation how this happen as no reference to this was in any previous documents .
4.What right I have and how I can obtain the Schedule 17 information .
WHO by LAW must have this documents .
The previous developer excuse is simply not acceptable .I believe that I have been misled or totally uninformed as to my "ownership "