Sectional title is a system in which “sections” of buildings are individually owned. A sectional plan is registered for each development scheme. It shows the sections –which are individually owned – and the “common property,” which is the land and all parts of buildings that are not part of any section (Unit)
As a sectional title buyer, what will I own?
You will own your section, perhaps several sections (such as a townhouse and a garage). The boundaries of your section are the centre lines of the walls, floors, and ceilings that surround it. Also, you will own a share of all the common property in the scheme. The size of your share in the common property is usually based on the floor area of your section. Your section, with its share in the common property, is known as a “unit”. You may also have “exclusive use rights” to one or more parts of the common property.
What should I check when buying section title property?
- Look at the sectional plan. Determine your section boundaries, the scheme boundaries, and that any section you are buying has not been
- Establish who owns or has exclusive use rights to parking, garden, storage areas, etc. Make sure that you are obtaining rights to any area you expect to be able to use exclusively, such as a parking bay or garden area, and whether they will be recorded at the Deeds Registry or in terms of the scheme rules.
- Check the participation quota of the sections. This usually determines your share of the body corporate expenses which you pay monthly in the form of a levy and the value of your vote.
- Get a copy of the scheme rules – read these and look particularly for any rules that change your liability for levies or create exclusive use rights.
- Check the current monthly levies and what expenses are included in the most recent operating budget.
- Inspect the condition of all the scheme’s common property, to assess the likelihood of any significant expenses for repairs and maintenance in the near future.
- Read the most recent set of financial statements – look particularly to see if there are sufficient reserves for maintenance and unexpected expenses.
- Find out whether the body corporate owes money to a levy financier, the local authority, or a supplier, and if it is involved in litigation or has judgments against it.
- Check the amount and type of insurance coverage and the current insurance replacement value allocated to the section.
