Real rights within a sectional title scheme are often confused by parties. Real Rights play an important roll in any scheme being developed. If you are not fully aware of at least the main basic legal concepts governing real rights within a scheme, you may be open to a few headaches down the line, including potentially a lot of money down the drain.  In this article will break down 5 of the important facts about Real Rights:

  1. A Real Right is only a right. It does not have a superior right to bring it in line with the right of ownership of immovable property.  A Real Right has limitations.  A real right cannot be interfered with, however the right is not absolute. It will come to an end.  A party acquiring such right must be fully acquainted with the right and, more so, the date it will laps.
  2. A Real Right is vested over common property. It cannot be vested over a section. Thereafter the holder of such right does not own the ‘land” in which the Real Right is vested over. In this case the common property.
  3. A Real Right is governed by the “Certificate of Real Right”. This document will express the full extent of the right. Keep this document at hand.
  4. A sale agreement dealing with a sale of a section within a scheme must bring to the Purchasers attention that Real Rights are vested over in favour of either the Developer of Body Corporate over portion /s of the common property. If this is not done, the Sale Agreement can be challenged.
  5. The Trustees of the Body Corporate may only raise levies to maintain the plot or portion of common property with real rights vested therein. Therefore, for example, the body corporate may not raise levies which include expenses that are not incurred to have the plot maintained such as managing agent fee, auditor’s fees, staff wages and insurance.

In summary, Real Rights are vital to the development of any scheme. Trustees, Developers and  Members must proceed with caution when dealing with Real Right disputes.