Du Rand NO v Faerie Glen Renaissance Scheme

The Faerie Glen Renaissance Scheme is a sectional title development established on land zoned for a retirement village. The body corporate sought to amend its management rules to expressly record that the Housing Development Schemes for Retired Persons Act 65 of 1988 applies to the scheme and to define it as a retirement village with minimum age requirements. The appellants, trustees and owners of units in the scheme, opposed the amendments. Because unanimous consent could not be obtained as required by s 35(2)(a) of the Sectional Titles Act 95 of 1986, the body corporate approached the court under s 1(3A) of that Act. The appellants argued that the meeting authorising the court application was defective, that there was no proper authority to litigate, and that the amendments adversely affected their proprietary rights, requiring their written consent under s 1(3)(c).

The appeal was dismissed with costs.

The case clarifies that the Housing Development Schemes for Retired Persons Act can apply to sectional title schemes and may do so from inception where the development is intended and zoned as a retirement scheme. It also confirms that under s 1(3A) of the Sectional Titles Act, a body corporate need only establish factual impossibility of unanimity to approach court, and that amendments clarifying existing statutory obligations do not constitute adverse effects on proprietary rights.