Sectional title can make easy work of home ownership

While freehold properties come with lots of freedom such as complete control of your property and the ability to do any renovations that you please, homes within sectional title schemes offer various forms of security that have ever-greater appeal for prospective buyers.

First things first — what is sectional title? This term describes a scheme in which various owners own a section or unit within a complex or development. The classic example here is an apartment — you own the apartment in which you live, but you do not own the building in which the apartment is located. As a whole, the building is looked after and maintained by a body corporate, which is responsible for the management of the entire building and its finances. Since the body corporate runs the finances, it is important that you review the building's financial statements and ensure that they are in good standing before signing any offer-to-purchase agreement.

As a sectional title owner, you will be required to pay monthly levies, which cover the cost of maintaining the building and the grounds. The advantage of sectional title is that you are not solely responsible for getting any necessary repairs or maintenance done. Such processes are managed by the body corporate, and if your building is well run, a potential problem is likely to be fixed before you even knew about it.

At times, sectional title owners may need to pay special levies, which are amounts that need to be raised for new projects or necessary repairs that do not fall within the complex's normal monthly expenditure. These special levies are payable over and above the normal monthly levies, and are likely to be raised when something is in critical need of repair, or when a security upgrade is needed. These levies could also be raised to pay for the installation of a new feature such as a swimming pool or a clubhouse. Payment of such levies is non-negotiable, so sectional title owners need to ensure that they are aware of any upcoming special projects and that they have funds available for such occurrences.

Living in a block of apartments or a complex, both of which are usually sectional title set-ups, typically comes with a set of rules which are designed to ensure harmonious living, as well as safety and security. There are likely to be rules in place for when you carry out maintenance work, for example, as well as regulations against excessive noise, especially in the evenings. In addition, there will be rules and regulations pertaining to having pets. By purchasing a unit in a sectional title scheme, you automatically become a member of the body corporate, and you are bound by the rules of that body corporate. If you have invested in a property with the intention of renting it out, it is up to you to ensure that your tenant adheres to the rules.

The trade-off to following these rules is getting to take advantage of the many benefits that come with sectional title schemes. More often than not, a sectional title unit in a complex will be cheaper than a house in the same neighbourhood. As a general rule, blocks of apartments and complexes will boast more stringent security measures than freehold houses, adding an element of safety for residents. Complexes and blocks of apartments are often able to offer a "lock up and go" lifestyle that will not be found in a freehold house.

It is important to understand that there is a difference between owners' sections (which would comprise of your apartment or unit), and exclusive use areas, which typically include parking bays, storerooms and balconies. Before signing on the dotted line to purchase your dream sectional title home, you need to make sure that you have verified which specific exclusive use areas — and parking bays are particularly important here — will be allocated to you when the transfer process is complete.

In a nutshell, buying property in a sectional title scheme enables you to make the most of every advantage of being part of a small community. Your local Jawitz Properties property experts have the inside track on all the ins and outs of the Sectional Title Act. Contact them today to find out how sectional title schemes make easy work of home ownership.