Sectional title properties are a popular choice for many homebuyers in South Africa, offering the benefits of shared ownership and community living. Whether you’re a first-time buyer or looking to downsize, understanding the nuances of sectional title ownership is essential for making an informed decision. This guide provides a comprehensive overview of what buyers need to know about sectional title properties in South Africa.

What is a Sectional Title Property?

A sectional title property refers to a type of property ownership where an individual owns a specific unit or section within a larger complex or building. In addition to owning their unit, the owner also has a shared interest in the common property, such as gardens, swimming pools and parking areas, which are collectively owned by all the sectional title owners.

Key Features of Sectional Title Ownership

1. Ownership of a Unit

When you purchase a sectional title property, you own your specific unit outright. This includes the interior of the unit and any exclusive-use areas, such as a garden or balcony, if specified in the sectional plan.

• Sectional Plan: The sectional plan is a detailed document that outlines the layout of the complex and defines the boundaries of each unit and the common property. It is registered with the Deeds Office and is legally binding.

2. Shared Ownership of Common Property

In addition to your unit, you also own a share of the common property. This shared ownership comes with both rights and responsibilities.

• Common Property: Common property includes all parts of the complex that are not part of individual units, such as corridors, elevators, gardens and recreational facilities.

• Exclusive Use Areas: Some areas of common property may be designated as exclusive use areas, meaning they are reserved for the use of a specific unit owner (e.g. a parking bay).

3. Body Corporate and Sectional Title Schemes

When you buy into a sectional title scheme, you automatically become a member of the body corporate, which is the legal entity responsible for managing the complex.

• Body Corporate: The body corporate is made up of all the unit owners in the complex. It is responsible for maintaining the common property, managing the scheme’s finances and enforcing rules and regulations.

• Trustees: The body corporate appoints trustees to manage the day-to-day operations of the complex. These trustees are usually unit owners who volunteer to serve on the body corporate’s behalf.

4. Levy Contributions

As a sectional title owner, you are required to pay monthly levies to the body corporate. These levies are used to cover the costs of maintaining the common property, managing the complex and paying for services such as security and insurance.

• Budgeting for Levies: It’s important to factor in levy payments when budgeting for a sectional title property. Levies can vary significantly depending on the size of the complex, the amenities offered, and the overall maintenance requirements.

• Special Levies: In addition to regular levies, you may also be required to pay special levies for unexpected expenses, such as major repairs or upgrades to the common property.

Benefits of Sectional Title Properties

Sectional title properties offer several advantages that make them an attractive option for many buyers:

1. Affordability

Sectional title properties are often more affordable than freehold properties, making them an ideal choice for first-time buyers, young professionals, and retirees.

• Lower Entry Costs: Because the cost of the land is shared among all unit owners, the purchase price of a sectional title unit is typically lower than that of a standalone house.

• Shared Maintenance Costs: Maintenance costs for common property are shared among all owners, reducing the financial burden on individual owners.

2. Security

Many sectional title complexes offer enhanced security features, such as controlled access, perimeter fencing and on-site security personnel.

• Secure Living Environment: The communal nature of sectional title living often provides a greater sense of security compared to freehold properties, which can be a significant advantage for those prioritizing safety.

3. Community Living

Sectional title complexes often foster a sense of community, with shared spaces and amenities that encourage social interaction among residents.

• Social Opportunities: The presence of common areas such as pools, gardens, and recreational facilities can create opportunities for socializing and building relationships with neighbors.

4. Low Maintenance

As a sectional title owner, you are only responsible for the maintenance of your unit’s interior. The body corporate handles the maintenance of the common property, which can be a relief for those who prefer low-maintenance living.

• No Garden or Pool Maintenance: In most cases, you won’t need to worry about maintaining the garden, pool, or other common areas, as these are managed by the body corporate.

Challenges of Sectional Title Ownership

While sectional title properties offer many benefits, there are also some challenges to consider:

1. Levy Increases

Levy contributions can increase over time, particularly if the body corporate needs to cover rising maintenance costs or fund special projects.

• Budgeting for Increases: It’s important to anticipate potential levy increases and ensure that you can afford higher payments in the future.

2. Rules and Regulations

Sectional title schemes are governed by a set of rules and regulations that all owners must adhere to. These rules can include restrictions on alterations, pet ownership and the use of common property.

• Compliance: As a sectional title owner, you must comply with these rules, which may limit your freedom to make changes to your unit or lifestyle.

3. Dependence on the Body Corporate

The quality of life in a sectional title complex can be heavily influenced by the management of the body corporate. Poor management or conflicts within the body corporate can lead to issues such as neglected maintenance, financial mismanagement or disputes among residents.

• Active Participation: To ensure that the complex is well-managed, consider getting involved in the body corporate or attending meetings to stay informed and have a say in important decisions.

What to Consider Before Buying a Sectional Title Property

Before purchasing a sectional title property, it’s essential to do your due diligence to ensure that the property meets your needs and that the scheme is well-managed.

1. Review the Financials

Ask for a copy of the body corporate’s financial statements to assess the financial health of the scheme. Look for indicators such as adequate reserve funds, timely payment of levies by owners, and a history of sound financial management.

• Debt Levels: High levels of outstanding levies or debt may indicate potential financial problems that could lead to special levies or increased contributions.

2. Understand the Rules

Request a copy of the scheme’s rules and regulations to ensure that you can comply with them. Pay attention to rules regarding pets, renovations, and the use of common property.

• Pet Ownership: If you have pets or plan to get them, check whether the scheme allows pets and under what conditions.

3. Inspect the Common Property

Inspect the condition of the common property and amenities. Well-maintained common areas indicate that the body corporate is managing the scheme effectively.

• Maintenance Standards: Look for signs of neglect, such as overgrown gardens, damaged fencing or poorly maintained pools, which could signal potential issues.

4. Speak to Current Residents

If possible, speak to current residents to get their perspective on living in the complex. They can provide valuable insights into the management of the scheme, the behavior of neighbours and any potential issues.

Conclusion

Sectional title properties offer a unique blend of affordability, security, and community living, making them an attractive option for many South African homebuyers. However, understanding the complexities of sectional title ownership is crucial to making an informed decision. By considering the benefits, challenges, and key factors before buying, you can ensure that your investment in a sectional title property is a sound one.

At Barter McKellar, our experienced property lawyers and conveyancers are here to guide you through the process of purchasing a sectional title property. We provide expert legal advice and support to help you navigate the complexities of sectional title ownership and ensure a smooth transaction. Contact us today to learn more about how we can assist with your property needs.