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Deeds Review - Ownership and How It Works

Deeds Review - Ownership and How It Works

Author: Mireille Barnard
Date: 2022-12-20

As the holiday spirit starts to spread over the North Coast and the holiday makers start to stream in, many travellers may start wondering if they want to own their own piece of heaven. You might find yourself driving through the streets of the idyllic towns of the region staring up at the beautiful condominium buildings- some shining and new, others weathered with the most beautiful views. Most holiday makers and young buyers will find themselves buying into a sectional title scheme because they are generally cheaper to purchase. In South Africa, we have two types of property ownership, sectional title and full ownership.

Full ownership is generally what people think of when they think of property ownership. You buy a piece of land with a house on it and it is yours to do with and maintain as you please (within the confines of the law). Sectional title ownership is slightly different. When you purchase a flat in a sectional title scheme you became the owner of the flat and a joint owner of the land and common property. In a sense, sectional title ownership is a communal form of ownership as you become jointly liable for the maintenance and upkeep of the communal land and buildings in proportion to the amount of space your flat takes up in the development. You also automatically become a member of the body corporate which manages the scheme and decides how complex levies (a fee you are expected to pay monthly to the body corporate) is spent.

The communal element to ownership and responsibility needs to be taken cognisance of prior to purchasing a section in a sectional title scheme. Prior to purchasing in a sectional title scheme arm yourself with knowledge. Ask for a copy of the sectional title rules. These rules can generally be found in annexure 1 and 2 of the Sectional Titles Schemes Management Act but occasionally they are amended. These rules are important as you will be expected to live-by and treat your property in accordance to them. They will also provide insight regarding when owners are solely and when they are jointly liable for maintenance of and repairs to the scheme. Ask for a copy of the body corporate financials so that you can rest assured that the scheme is financially healthy. Additionally, ask for a timeline on major scheme maintenance such as the painting of the complex as this can heavily impact your complex levy. Lastly, spend time at the scheme during different times of the day to get a feel for the environment and the neighbours, after all you are about to become a communal land owner with them.