Factors that should be taken into consideration before buying in a sectional title scheme

Before we go into what you need to know before buying into a sectional title scheme, let's understand what it is. Sectional title simply describes the separate ownership of a unit in a development or a complex. This is not to be confused with full title or freehold where you purchase full ownership rights to a property encompassing the building and the land it is built on.

What exactly do you own when you buy in a Sectional Title Complex or Development? When buying, you will become the owner of your unit or section and you will own an undivided share in the common property. An undivided share means that no owner can claim ownership of a certain part of the common property. There are also areas defined as exclusive use areas, meaning that as the owner of your section, you have exclusive use of these areas. These may include balconies, verandas, gardens and parking bays.

So what are the benefits of buying Sectional Title? When owning a property, you as the property owner are responsible for all maintenance, inside and out, whereas in Sectional Title, the Body Corporate is responsible for the repairs and maintenance of the exterior of the building and common areas. This can go a long way to reduce the headache of repairs and maintenance as well as, the financial implications. However, this benefit does not come without a price tag attached.

When buying into a Sectional Title Scheme, you are liable for monthly levies over and above the rates you pay to the municipality. Be sure to check what these levies are and what they cover before buying, so that you can budget accordingly. Levies can cover things like building insurance, maintenance of common areas like communal gardens, driveways and the exterior of units. Some may even cover water usage and security guards.

It is essential that you request a copy of the Body Corporate Financials as well as the minutes of the last meeting before buying in a Sectional Title Scheme. The Body Corporate Financials will show you whether the scheme is being run successfully and is cash flow positive. Any arrears in a Body Corporate will have a direct financial implication on the individual owners and should be noted. The minutes of the last Body Corporate meeting will inform you of any major repairs or maintenance that may be planned for the near future which would result in a higher 'special levy' being enforced on owners.

Find out who manages the Body Corporate. As an owner in a Sectional Title Scheme you immediately become a member of the Body Corporate. Most owners/body corporate members are not property professionals or legal experts, so it is imperative that this is managed by professional managing agents.

Lastly, make sure that you are given a copy of the Body Corporate Rules or Code of Conduct. Ensure that the rules will not affect how you can use enjoy your property.

Deal Core Property Group offer sales and leasing of Commercial and Industrial and Sectional Title units and would be happy to assist you with your property requirements.

For further details, please contact Ryan Berry on 083 607 3865 / ryan@dealcore.co.za