Creation and allocation vs delineation and registration of EUAs
Category Newsletter: Did you know?
In Sectional Title schemes, the land may be divided into sections, common property and exclusive use areas (EUAs). As a member of the Body Corporate, you own a section and an undivided share of the common property, making up a "unit". You could also "own" an EUA. In order to check if you do have a right to an EUA, you need to look at a few documents, namely your title deed, the sectional plans and conduct and/or management rules of the Body Corporate. The reason for this, is that there are 2 different types of EUAs, namely rule based and registered. Let's take a look.
The developer of the Body Corporate, or the members, by unanimous resolution, can delineate EUAs on the sectional plans of the scheme, that are approved by the Surveyor-General and registered with the Registrar of Deeds. This form of EUA reflects not only on the sectional plans, but also on any deeds search as it is part of your title deed as a notarial deed of cession. Should you sell your section, you must transfer your EUA to the buyer or to an owner of another section in the body corporate, and if you don't, you will lose your right to the EUA, and it will then belong to the body corporate.
The alternative is the creation and allocation of EUAs, which again, can be done by the developer initially, or by the members, either in the amended conduct rules, by special resolution of the members, or in the amended management rules, by unanimous resolution. The rules must include a layout plan, showing where the EUAs are situated in the scheme, and what they are, for example parking, balconies, storerooms, and a schedule of allocation showing to which section a certain EUA is allocated. A rule based EUA, as it is not registered, cannot be transferred, but as it is allocated to a section, it is used and enjoyed by a buyer of a section.
In both instances, the Body Corporate is responsible to maintain and repair an EUA, as it remains part of the common property, but the trustees must recover an additional contribution to reimburse the body corporate for the expenses it has to incur in connection to the EUA. The body corporate's rules may be amended to provide for a different calculation of the contribution or to make an owner directly responsible for the EUA, so you need to keep an eye out for that.
Now you know what to look out for if you are unsure if an area is a section, part of a section, part of the common property or an EUA, and if an EUA, what type of EUA.
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Please click on the following link to learn more about the Author and her company, TVDM Consultants - https://www.tvdmconsultants.com/zerlinda-van-der-merwe
Author: Zerlinda van der Merwe, TVDM Consultants
