With sectional title developments being the future of residential living, it has become very important to familiarize oneself with the Developers Real Right of Extension in terms of Section 25 of the Sectional Titles Act 95 of 1986.

The real right of extension gives the developer a right to extend the scheme by adding further buildings and conferring exclusive use rights to prospective buyers. The right has to be registered and is operational for a specified period of time.

This has a direct impact on current or future owners, an example being that a unit with an un-obscured view may find its view blocked due to a new phase being built directly in front of it, thereby diminishing the property value by terminating the view. Apart from values of the property being affected, living conditions may be affected as well.

Further impacts are the potential to increase the number of residents in the development, the reduction of common property and the increase in traffic in or around the development.

In terms of Section 25(14) of Sectional Titles Act, one must ensure that if a real right of extension exists it must be declared in the sale agreement.

Should the right exist, but not be disclosed in the sale agreement, the agreement can be declared voidable at the option of the purchaser by simply delivering notice to the seller. The Section 15B (3)(a) conveyancers certificate also covers this right, and should the right exist but not be disclosed, then the purchaser has to give written notice in terms of Section 25(15) that he/she does not intend to annul the agreement because of the defect.