Sectional titles – a concept that describes the separate ownership of units within a complex or development – has grown in popularity over the last decade.
This is largely due to the fact that sectional titles tend to be more affordable, making it easier for young professionals to buy their own property. Additionally, sectional titles offer heightened security and a more communal way of living.
The owner of the unit automatically becomes part of the body corporate, which is the legal entity that owns and controls the common property in the sectional title scheme. The body corporate lays down the rules that have to be adhered to by all the owners.
Sectional titles remove the responsibility of having to pay for home insurance, and for the upkeep of the pavement, garden that may come with owning freehold properties.
Instead, unit owners pay a monthly levy that may include the insurance premiums, maintenance of the common property, wages of security and other staff involved in maintaining the common property, as well as any water and electricity that may be required or the common property. This differs from complex to complex.
Since units are closer to each other, sectional titles have a sense of communal life, allowing interactions between neighbours. This can lead to the formation of close knit communities. It is also considered to be safer that freehold properties, because they generally have good perimeter and entrance security.
The cost of living in a sectional title is more affordable than in freehold properties, because the cost of maintaining the common property is shared by all of the owners.
Sectional title units are very popular in the rental market and are leased out easily. This eliminates the risk of an owner becoming indebted if he could no longer afford the mortgage on his unit.
A sectional title can refer to anything from a semi-detached house, a town house, a flat or apartment to a subtype house.
Ownership of sectional title properties involves various elements, provided that the unit consists of a section plus an undivided share in the common property. The first element is the section that is exclusively owned by the owner thereof.
The second element is the common property which is owned by all the owners in undivided shares. The third element is the right to exclusively use certain parts of the common property, such as the garage, a garden or a storeroom.
Should you have any queries relating to sectional titles, contact the legal professionals at Van Deventer and Van Deventer Incorporated
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The Alienation of Land Act provides that for immovable property sale transactions of R250 000 and below, a cooling off period of 5 business days applies. In this period the purchaser may notify the seller and revoke the offer with no consequences.
Read More ...Posted by Cor van Deventer on Wednesday, August 25, 2021 Views: 85