Share Blocks Control Act 1980 (Act No. 59 of 1980)8A. Duties of share block developer in connection with opening of sectional title register |
| (1) | Whenever shares in a share block company are directly or indirectly offered for sale by a share block developer, the offer shall state in writing whether or not the share block company intends to effect the opening of a sectional title register in terms of section 5 of the Sectional Titles Act, 1971 (Act No. 66 of 1971), in relation to the immovable property in respect of which the share block scheme is or is to be operated. |
| (2) | If an undertaking has been given to effect the opening of a sectional title register as contemplated in subsection (1) and a contract for the acquisition of a share is entered into, the share block developer shall, within 14 days of the signing of the contract, furnish the purchaser with an irrevocable and unconditional guarantee by a bank registered otherwise than provisionally under the Banks Act, 1965 (Act No. 23 of 1965), a mutual building society registered otherwise than provisionally under the Mutual Building Societies Act, 1965 (Act No. 24 of 1965), a building society registered otherwise than provisionally under the Building Societies Act, 1986 (Act No. 82 of 1986), or a registered insurer as defined in section 1 of the Insurance Act, 1943 (Act No. 27 of 1943), in virtue whereof the said bank, mutual building society, building society or insurer undertakes to pay the total expenditure in order to effect the opening of the said sectional title register if the opening of the said register is not effected within a period specified in the said guarantee. |
| (3) | Any purchaser or seller who has performed partially or fully under a contract for the acquisition of a share shall, if the provisions of subsection (2) have not been complied with in his case, be entitled to reclaim from the other party what he has performed under the contract, and— |
| (a) | the purchaser may in addition claim from the seller— |
| (i) | interest at 12 per cent per annum or at the rate prescribed from time to time by the Minister by regulation for the purposes of this section, on any payment made under the contract, from the date of payment to the date of recovery thereof; and |
| (ii) | reasonable compensation for any expenses incurred by him with or without the authority of the share block company, for the preservation of the immovable property in respect of which the share block scheme is operated, or in respect of any improvements which enhance the market value of that immovable property and which were effected by him with the express or implied consent of that company; and |
| (b) | the seller may in addition claim from the purchaser— |
| (i) | reasonable compensation for the use that the purchaser may have had of the immovable property in respect of which the share block scheme is operated; and |
| (ii) | compensation for any damage caused in respect of such immovable property by the purchaser or any person for whose acts or omissions the purchaser is delictually liable. |