What Is Sectional Title?
The concept of sectional title ownership has been around in South Africa since the mid-1960s. It is a system whereby owners purchase shares in a building that gives them exclusive use and occupation of an individual unit, but also collective ownership over common property such as hallways, staircases, gardens and parking areas. This makes it easier to manage the maintenance costs within a complex or estate.
Sectional title schemes are regulated by the Sectional Titles Act 95 of 1986 (STA) which provides for rules governing establishment and management of sectional titles schemes as well as dispute resolution mechanisms. The STA sets up guidelines for how developments should be managed, including financial records kept by trustees and requirements with regards to insurance coverage on common property.
Benefits Of Owning A Sectional Title Property
Owning a sectional title property brings many benefits:
– Low Maintenance: As all repairs/maintenance issues are taken care of by the body corporate you don’t have to worry about major repair bills yourself so long as your levies are paid up.
– Increased Security: Many complexes offer added security features such as access control systems at each entrance point which help to keep out unwanted guests or intruders looking to break into units within the scheme
– Shared Costs: By sharing costs through levies collected from all owners in the scheme it becomes much cheaper than if everyone had their own house with its own set of expenses associated with upkeep/maintenance etc…
Disadvantages Of Owning A Sectional Title Property
Although there may be some advantages when owning a sectional title property, there can also be drawbacks too:
– Lack Of Privacy : Your home is no longer completely yours due to shared walls between neighbours meaning sound travels easily making it difficult for anyone wanting some peace and quiet or privacy from their neighbours
– Levies Can Be High : If not managed properly levies can become high due to poor budgeting by trustees or unexpected costs that arise due to unexpected damage fixing etc… – Limited Control Over Rules : You can’t make any changes without approval from other members/trustees – even minor changes like painting your house must go through proper channels so this could lead delays in getting things done quickly if someone else disagrees with what you want!
Conclusion
Overall owning a sectional title property has both pros & cons depending on your individual situation but if managed correctly they can provide great value for money & convenience compared against buying an entire freehold home outright! Before making any decisions however always consult legal advice & research extensively before committing yourself financially into anything new – especially something like this where stakes are usually quite large!
