What is a ‘real right’?
A “real right” to extend is the right held by someone to develop a piece of land at a later stage.
A “real right” is normally linked to a time period during which the holder of the right must exercise the right and develop the piece of land. Developing land means building on the property and registering or converting it to a unit in the scheme.
If the land has not been developed and registered or converted within that time, the right will lapse and the holder will lose his or her right to develop in the future on said land.
It is not ownership of a piece of land.
A real right of extension can be sold.
When dealing with a real right to extend, the following is very important:
- Obtain the Notarial Deed of Real Right of Extension. The holder should have this. Without it, confirmation or denial of the right cannot be done.
- Ensure that the time period has not lapsed and the right is still valid.
- Ensure that the purchaser knows that he or she is purchasing a right to develop and not a section. This is very important, especially in cases where there is already a property on the piece of land.
- As soon as the property is developed, it must be registered or converted to a unit in the scheme.
If you want sound advice on this matter, do not hesitate to contact the RealNet Bela-Bela Lifestyle offices at tel. 060 589 5610 or visit their website www.realnet.co.za (.) Follow them on Twitter at #connectingheartsandhomes(.)
