The purchaser of a unit in the block of shares becomes a shareholder of the company and is entitled to supply that unit determined according to the conditions set out in the contract of use. Other rights are also conferred in the foundation agreement and in the use agreement between Share Block Corporation and shareholders. A buyer inquires with a real estate agent: “I fell in love with a beautiful apartment with 3 bedrooms overlooking the sea in Camps Bay, which is part of a stock block company, and I want to buy it. What is the process? If a part of a building is already leased for residential purposes and sold for the first time, it must first be offered to the taker and he must have refused (or not) the offer within 90 days.5 It is an offence to enter into a sale in violation of this provision.6 Each shareholder pays a monthly fee to cover the costs of maintaining and managing the block. Share block systems are a way for people to own an apartment in a tower. Technically, you own a share of a company that owns the building, but your share is related to a particular apartment, perhaps to special additional equipment – a garage infiltrates, for example. The pros and cons of purchasing an existing shareblock system or converting Share Block to Sectional Title. If the portion to be divested relates to a portion of the building which, under the Rent Control Act of 1976, constitutes “controlled premises” and the tenant is 65 years of age or older and has an income below the maximum amount advertised in that Act, it is only the amount of that tenant – or another person subject to the tenant`s right to remain in the profession.” It is an offence to enter into a transaction that violates this provision.8 In summary, a block of shares plan is another form of ownership. Instead of full ownership rights, equity block systems allow a single company to own a certain development, while individuals can acquire the right to use a specific unit or space within the development. It is punishable to operate a block of shares regime for land built in opposition to an approved (or proposed) urban planning project.3 In a block company, the directors are responsible for the management of the company. They are bound by the provisions of the Action Blocking Act and the Company Act and generally handle all management tasks. A block company was registered as the owner in the land and buildings, and each unit was assigned a number of shares (known as the “share block”) to the company, which gave the owner the right to use and occupy the dwelling.
A copy of the contract to acquire a limited company must be delivered by the seller to the buyer within 14 days of closing.