Share Blocks are a property ownership and management structure, often associated with certain types of residential developments.
The share block scheme allows individuals to own shares in a company that, in turn, owns the property or properties. Shareholders have the right to occupy specific units, and their ownership is represented by shares in the company.
Consultation with a property professional is generally recommended to ensure a clear understanding of the implications of purchasing into a Share Block scheme.
Some key aspects of Share Block management:
- Share Block Company: The property is owned and managed by a Share Block Company. Individuals become shareholders, with the number of shares determining their right to occupy a specific unit.
- Ownership and Occupation: Shareholders own shares in the company rather than the physical property. Long-term leases or occupancy rights are granted to specific units.
- Management and Maintenance: The Share Block Company oversees property management and maintenance. Shareholders contribute through levies covering operational and maintenance costs.
- Levies and Finances: Shareholders pay regular levies to fund property expenses. Levies support common area upkeep, security, and shared services.
- Governance: The Share Block Company is governed by a board elected by shareholders. Shareholders may influence major decisions through voting rights.
- Legal Framework: The Share Block is regulated by the Share Blocks Control Act, Companies Act 71 of 2008, and the specific Memorandum of Incorporation for that Share Block.
- Resale of Shares: Shareholders selling their interest transfer shares to new buyers. Approval from the Share Block Company and due diligence are typically required.
Our team can assist shareholders with proficiently executing all of their relevant duties. For assistance in Cape Town and surrounds, contact us to get in touch with one of our Property Management experts.
