POTENTIAL DIFFICUTIES ASSOCIATED WITH FRACTIONAL PROPERTY OWNERSHIP
- If you own a fractional share of a property you are reflected on the title deed.
- One needs to provide issues such as insolvency of a fractional property owners or one of the fractional property dying. We see no reason why a fractional share can not be sold in case of insolvency and death in much the same way as a normal property would be sold on auction.
- Notarial agreements can be drafted and registered against the title deed of the property to protect a fractional owners right to use and enjoy the fruits of a property (for example, the rent received for a unit).
- Agricultural Property: The Subdivision of Agricultural Land Act, 70 of 1970 prevents one from subdividing agricultural land. Fractional property ownership is not suitable for property zoned for agricultural purposes.