If you've ever bought an apartment, townhouse or unit in a complex, you may have come across the term sectional title.

But what does it actually mean?

Sectional title is a form of property ownership that allows individuals to own a specific section of a larger development while also sharing ownership of common areas and facilities.

It is widely used for apartment buildings, townhouse complexes and other residential developments, but the structure can sometimes be confusing for first-time buyers and owners.

Understanding how sectional title works can help you better understand your rights, responsibilities and the costs associated with owning a property in a sectional title scheme.

What Does Sectional Title Mean?

In a sectional title scheme, a property is divided into individual sections and common property.

Your section is the part of the property that you own exclusively. Depending on the development, this might be an apartment, townhouse or another defined unit.

The common property refers to areas that are shared by all owners in the scheme. This can include:

• Driveways and entrances

• Gardens and communal areas

• Staircases and passages

• Swimming pools

• Parking areas

• Lifts

• Other shared facilities

As a sectional title owner, you therefore have both individual ownership of your section and a shared interest in the common property.

What Is the Body Corporate?

A sectional title scheme is managed through a body corporate.

The body corporate is made up of the owners within the scheme and is responsible for managing and maintaining the common property and dealing with various administrative and financial responsibilities.

This can include matters such as:

• Maintaining communal areas

• Managing the scheme's finances

• Arranging necessary repairs

• Setting and collecting levies

• Obtaining appropriate insurance

• Enforcing the scheme's rules

The body corporate generally operates according to the relevant legislation and the scheme's governing rules.

What Are Sectional Title Levies?

One of the most important financial considerations when buying into a sectional title scheme is the monthly levy.

Levies are paid by owners to contribute towards the costs of running and maintaining the scheme.

Depending on the scheme, these contributions may help cover things such as:

• Maintenance of common property

• Cleaning and gardening

• Security

• Insurance

• Administrative costs

• Repairs and upkeep

• Contributions to reserve funds

The amount of the levy can vary considerably between schemes, so prospective buyers should understand exactly what their levy covers before purchasing a property.

It's also worth remembering that a lower levy isn't necessarily an indication of lower overall costs. A scheme's financial position, maintenance requirements and reserve funds can all be important considerations.

What Are Exclusive Use Areas?

Some areas within a sectional title scheme may be part of the common property but allocated for the exclusive use of a particular owner.

For example, an owner might have exclusive use of a garden area, parking space or patio.

However, exclusive use does not necessarily mean that the owner owns that portion of the property in the same way that they own their section.

The specific rights and responsibilities relating to an exclusive use area can depend on the scheme's documentation and rules, which is why it's important to understand the property's legal structure.

What Rules Apply in a Sectional Title Scheme?

Sectional title schemes have rules that help regulate how the property and common areas are used.

These rules can cover a wide range of issues, such as:

• Keeping pets

• Making alterations to a unit

• Noise

• Parking

• Use of communal facilities

• Changes to external areas

• Conduct within the scheme

The purpose is to help manage shared living and protect the interests of owners within the development.

Before buying into a sectional title scheme, it is therefore worth understanding the rules that apply to the property.

What Should Buyers Consider?

Buying a sectional title property involves more than simply looking at the unit itself.

A prospective buyer should consider the wider financial and administrative position of the scheme.

This can include looking at:

• The monthly levy

• The scheme's financial statements

• Any planned or upcoming maintenance

• The reserve fund

• Existing or potential special levies

• The scheme's rules

• Any disputes or legal issues affecting the scheme

These factors can give a buyer a better understanding of the responsibilities that come with owning the property.

Sectional Title vs Freehold Property

One of the simplest ways to understand sectional title is to compare it with traditional freehold ownership.

With a freehold property, the owner generally owns the property and the land on which it stands, subject to the relevant title conditions and laws.

With sectional title, the owner owns a defined section within a larger scheme and shares ownership and responsibility for the common property with the other owners.

Neither structure is automatically suitable for every buyer. The important thing is understanding what you're buying and what responsibilities come with it.

Understanding Your Sectional Title Property

Sectional title ownership can offer many advantages, particularly for people who want to live in an apartment, townhouse or managed residential development.

However, it also comes with shared responsibilities. Understanding the scheme's rules, financial position and management structure is an important part of making an informed property decision.

Because sectional title involves specific legal and administrative requirements, professional advice can be valuable when buying, selling or dealing with issues within a sectional title scheme.

How Du Plooy Inc. Can Assist

At Du Plooy Inc., we understand that property transactions can involve more than simply signing an agreement.

Sectional title matters can involve ownership rights, scheme rules, levies, common property and other legal considerations. Getting the right advice can help you understand your position and navigate the process with greater confidence.

If you are buying or selling a sectional title property or need legal guidance regarding a sectional title matter, contact Du Plooy Inc. to discuss your requirements with a legal professional.