Croxford Trading 7 (Pty) Ltd and Another v The Body Corporate of the Inyoni Rocks Cabanas Scheme No SS1/1978

A sectional title scheme, Inyoni Rocks Cabanas, was registered in 1978 under the Sectional Titles Act 66 of 1971. The developer, Inyoni Beach Apartments (Pty) Ltd, owned a unit in the scheme and reserved a right of extension in terms of s 18 of the 1971 Act. After the Sectional Titles Act 95 of 1986 and its 1993 amendment came into force, the developer registered a certificate of real right in 2003. However, prior to the registration of a notarial deed of cession of the right of extension to Croxford Trading 7 (Pty) Ltd in 2004, the developer had already disposed of its unit in the scheme and thus no longer held any interest in the common property. The Body Corporate contended that the developer’s right of extension lapsed upon disposal of the unit and could not validly be transferred. The appellants argued that the 1993 amendment rendered the right transferable and exercisable without ownership of a unit.

The appeal was dismissed with costs, confirming the declaratory order that the deed of cession of the right of extension was invalid and should be cancelled.

The case clarifies the limited effect of the 1993 amendment to the Sectional Titles Act, confirming that while it rendered rights of extension acquired under the 1971 Act transferable, it did not remove the requirement that the developer retain ownership of a unit. It reinforces the principle that transitional provisions do not enlarge substantive rights unless clearly stated, and it provides important guidance on the interpretation of developers’ rights in sectional title schemes.