Exclusive Use Areas – The devil in the detail of Sectional Title Transfers

Exclusive use areas (EUA’s) are integral to the value, financing and transfer of sectional title property, demanding the utmost vigilance from conveyancing practices.  

Exclusive use areas (EUA’s) take various guises, from real rights either separately registered, to personal rights granted by Body Corporates. The former is effected in the form of a notarial deed and the latter, is merely confirmed in writing by the Body Corporate. 

Overlooking exclusive use areas (EUA’s), has the undesirable consequence of having to amend the mortgage bond and can lead to a rejection by the Deeds Office, which play out in protracting the transfer process, much to the wrath of the parties, not least of which, property practitioners (aka Real Estate Agents). 

Following the introduction of rates clearance certificates for sectional title property transfers in 2008, the approach of deeds offices to exclusive use areas is inconsistent to say the least, for example, the Pretoria Deeds office requires an endorsement on the rates clearance certificate whereas the Johannesburg Deeds Office simply does not.  

While it is the property practitioner’s responsibility to ensure the stipulation of an exclusive use area/s (EUA’s) in the offer to purchase or agreement of sale, conveyancing practices must be vigilant of exclusive use areas (EUA’s) in sectional title transfers and intimately au fait with the approach of the applicable Deeds Office, to avoid all hell breaking loose.  

Feel free to contact the writer for your property law needs.