Sectional Title

What You Need To Know Specifically About Sectional Title

Don’t be intimidated by the different terminology used here. Sectional Title Ownership means that you actually own your own unit (a section) and in addition you have ownership of a undivided share of the land and common property of the complex.

Levy Clearance Certificate

Before transfer can be effected a "Levy Clearance Certificate" must be obtained from the Body Corporate (or the managing agents acting on their behalf), certifying that all levies have been paid in full. The certificate must be valid for a period beyond the date of transfer, and the necessary amount will be paid by the purchaser through the transfer attorney, and credited in the Body Corporate’s book of account. A suitable adjustment will be done on transfer.

Basic Sectional Title Terminology

A Section

A "section" is the interior of an apartment or townhouse you have bought. It is an area confined by walls, a floor and a ceiling, and is depicted as such on a registered Sectional Plan.

Common Property

The "common property" consists of land and those parts of the buildings which are not sections. The common property is jointly owned by all the persons who own sections in the development scheme. Examples of common property are staircases, external passages, roof, swimming pool and land on which the building is built.

A Unit

A "unit" consists of a section together with an undivided share of the common property apportioned to the section, in accordance with the participation quota. The only entity capable of ownership is a unit - neither the section nor the common property can be separately owned.

An Exclusive Use Area

An "exclusive use area" is an area of common property reserved and allocated for the exclusive use and enjoyment of one owner to the exclusion of all others. Participation Quota

The "participation quota" is a fraction calculated by the division of the floor area of the section concerned by the total floor area of all the sections in the scheme. The participation quota determines the extent of an owner’s share in the common property and his levy contributions.

Body Corporate

The "body corporate" is a legal entity and is responsible for the control, management and administration of the complex. As a person becomes an owner of a unit in the scheme, he automatically becomes a member of the body corporate.

The Trustees

The "trustees" are elected by the members of the body corporate to perform the functions of the body corporate. The trustees meet on a regular basis and are responsible for the day-to-day running of the development scheme, but need not be owners in the scheme.

Levy

The "levy" is an amount paid to the body corporate or the managing agents as the owner’s share of the estimated running expenses. The common expenses would include rates and taxes, insurance, wages for caretakers, water and electricity for common property, management fees (where managing agents are employed to administer the scheme), audit fees, lift maintenance and garden services. The levy is payable by each owner on a monthly basis. Usually water and electricity for the unit is paid for separately.

Rules: Two types of rules generally exist:

1. Prescribed Management and Conduct rules

Rules set down in terms of the Sectional Title Act at the outset of the scheme which can only be changed by unanimous resolution of all owners. An example would be to hold an annual general meeting and to establish a levy budget.

2. House Rules 

Rules made by the Board of Trustees for day-to-day running matters to promote harmonious relations between owners. An example would be a limitation on the ownership of pets.