In many cases, in addition to purchasing shares within the block company, shareholders also acquire an “allocated loan,” which means they assume some of the responsibility for the business. This credit must be paid in monthly instalments. Among other obligations, it is an infringement of the management of a system of blocks of shares for real estate built in contradiction with an approved (or proposed) urban plan.3 The acquisition of shares in the company entitles a buyer to use part of the block and vote at shareholder meetings. A “user agreement” is concluded for each block of shares system and this agreement confers the right or interest to use the property in question. Investors buy a housing block backed by a loan from a financial institution. Share Block systems are a way that allows people, for example, to own an apartment in a tower. Technically, you own a share of a company that owns the building, but your share is related to a particular dwelling, perhaps to some additional amenities – for example, a covered garage. In short, a block of shares system is an alternative form of ownership. Instead of ownership, sharing block systems allow a single company to own a certain development, while individuals can buy the right to use a particular unit or space in development.
The advantages and disadvantages of purchasing in an existing Shareblock schema or converting Share Block to Sectional Title. A block company was registered as the owner of the land and buildings, and each dwelling received a number of shares (known as a “Share Block”) in the company that granted the owner the exclusive use and use of the dwelling. If a shareholder wishes to sell the right to use his dwelling and, therefore, his shares in the company, he can do so. One buyer asked a real estate agent: “I fell in love with a beautiful three-bedroom, sea-view apartment in Camps Bay, which is part of a stock market block company, and I want to buy it. How is the process? In a block company, the directors are responsible for the management of the company. They are bound by the provisions of the Act on the Control of Blocks of Shares and the Law on Companies and in principle take care of all management tasks. There are a number of provisions of the Block Control Act that govern the sale of shares. These provisions provide potential buyers with all the information they need to make an informed decision; They also outline the steps that should be followed by real estate agents who want to market and sell shares. These can be viewed here. It is also a criminal offence if the company does not file a copy of the user agreement (which it must implement) with the Registrar prior to its signature.13 The purchaser of an entity in the share block becomes a shareholder of the business and is authorized to occupy that entity under the terms set out in the user agreement. . .