You may not own what you have bought in a share block scheme
When buying into a share block scheme, you do not buy a specific section of the block, as you would when buying sectional title
When you buy into a share block scheme, you do not buy a specific section of the block as you would when buying sectional title. In fact, the shareholders can swap units before selling it to you, as a recent case heard in the Durban High Court shows. Nadia Moosa from Midrand bought shares in a Durban share block company that owns a block of flats called Albemarle Court near the Durban beachfront. According to the share block company’s Articles of Association, the shares she bought in 2004 entitle her to the exclusive use of flat 29 and garage 28. Ten years later, when she asked for permission from the property’s managing agent to automate the garage door, Moosa learned that the garage she should have been using was located on the inside of the complex courtyard. She had been using a street-facing garage on the outside perimeter of the building. The inside courtyard garage is more valuable for purpose of resale and letting than the outside, street facing garage. In its response to he...
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