Share block scheme

A share block scheme is an alternative form of ‘ownership’. The property in question is owned (or leased through a long lease) by a juristic person. The members of the juristic person then acquire blocks of ‘shares’ in the building, based on the shares that they hold in the juristic person.

For example, suppose ABC (Pty) Ltd owns an apartment block. Andrew, Lihle, and Dewani each own one-third of the shares in ABC (Pty) Ltd. Andrew, Lihle and Dewani will then each be entitled to use one-third of the building.