Central Developments Tshwane (Pty) Ltd t/a Central Developments Property Group and Another v Body Corporate of Twee Riviere Aftree Oord (Sectional Title Scheme SS0052110)

One or other of the appellants was the developer of a large sectional title retirement village known as Twee Riviere Aftree Oord. The respondent body corporate alleged that the developer negligently designed and constructed portions of the common property, specifically the foundations of courtyard and patio walls, resulting in defects. The body corporate instituted actions in the Gauteng Division of the High Court to recover damages based primarily on delict, with alternative claims based on latent defects and misrepresentation. The developer raised a special plea contending that the body corporate lacked authority to sue because it had not obtained a special resolution as contemplated in s 2(7)(e) of the Sectional Title Schemes Management Act 8 of 2011 before instituting the action.

The appeal was dismissed. The order of the High Court was set aside and replaced with an order dismissing the special plea, with each party ordered to pay its own costs relating to the special plea. Each party was also ordered to pay its own costs of the appeal.

The case clarifies the scope of a body corporate’s statutory powers to litigate under the Sectional Title Schemes Management Act. It authoritatively confirms that bodies corporate may sue developers for damage to common property under s 2(7)(b) without obtaining a special resolution, thereby resolving uncertainty created by earlier case law and misinterpretations of s 2(7)(e). The judgment is important for the effective enforcement of rights relating to common property in sectional title schemes.