"Usually when you buy a property you buy everthing including the land and the buildings. But under sectional title (whichapplies mostly to blocks of flats and flat complexes) you own your flat and perhaps a parking bay but common property such as stairs, roads, foundation, roof and ground is owned jointly by all owners in the sectional title scheme.

Tue 06, 03, 2007

"Usually when you buy a property you buy everthing including the land and the buildings. But under sectional title (whichapplies mostly to blocks of flats and flat complexes) you own your flat and perhaps a parking bay but common property such as stairs, roads, foundation, roof and ground is owned jointly by all owners in the sectional title scheme.

Owners in the scheme belong to the body corporate, the legal entity that controls the scheme. Members of the body coporate usually meet at an annual general meeting where they elect trustees who are responsible for the management, maintenance, administration and fianances of the scheme. The trustees can appoint a managing agent to deal with the day-to-day running of the scheme. Members pay a monthly levy which is used for, among other things, security and maintenance of communal property. The amount you pay depends on the size of your unit and is set interms of a budget approved by members themselves. Currentlsy these levies also cover municipal rates, water and electricity butr this is about to change - in terms of new legislation from July 2008 municipalities will have to issue individual bills for these services to each sectional title owner. Some municipalities plan to implement this scheme in July. There are several advantages to owning a sectional title property. Maintenance of the grounds is not your problem for instance and expenses such as security are usually lower because they are shared by all the owners. However unlike freehold property you can't do with your sectional title property as you please. You have to abide by the rules of the scheme and are compelled to maintain your section. The rules must conform with provisions of the Sectional Titles Act and come into force when owners take transfer."