Shareblock – Share Block
Share block is normally associated with flats or apartments. This is where the buyers own shares in a company that owns the property instead of the property itself.
Sectional Title is a lot more common these days because it makes you the owner of the property vs. the company but legally this does have it’s advantages. Previously share block was rarely funded by banks in South Africa. It also required directoral consent prior to the sale and transfer of shares. If you cannot afford to pay for the unit any longer, the unit can be declared or forfeited.
The question everyone seems to have now, is do the banks support Shareblock with the new credit act in place? According to some reports
For more information please see Share Block Control Act 1980, Act No. 59
Shareblock Schemes Converted