| SECTIONAL TITLE | |||||
| What must a potential buyer know |
For
more information please visit these pages on sectional titles
sectional
Title Guidelines
Sectional
Title Rules and Trustees
Tel (w) + 264 61
239330
Cell 0811281241
mailto:
jonathan@no1estates.com
What MUST you a potential buyer and or owner, know of a Sectional Title. Herewith answers to the questions mostly asked!!
What
is Sectional Title?
A
Sectional Title Development, commonly refer to as a Scheme, provides for
separate ownerships of various
parts (sections) of the property by various individuals.
What
am I buying or what do I own?
When you are buying into a SCHEME you will acquire a SECTION(S) and an
undivided share of the Common
Property. These are collectively known as a UNIT. In plain language it
means a flat, townhouse, garage,
storeroom, balcony or even in some cases a domestic staff room
What is a SECTION?
A SECTION is a marked area on the Sectional Plan and is a “portion” of
the building that can be exclusively owned (OWN TITLE DEED). As a
general rule, a SECTION must be an area confined by WALLS, a FLOOR and a
CEILING but may also include a stoep, atrium, porch or a balcony. Each
SECTION is exclusively owned to the centre line of the walls, the lower
part of the ceiling and the upper part of the floor which forms the
boundaries of that SECTION, commonly refer to as floor area (m˛) of my
SECTION.
THIS IS ALL THAT YOU BUY AND OWN!!!
What is COMMON
PROPERTY (CP)
COMMON PROPERTY is that part of a scheme which does not form part of any
section and which therefore are not capable of exclusive ownership by
any one individual. For example: corridors, driveways, external
passages, stairways, the land, gardens, swimming pools, parking bays,
lifts, the outer walls, foundations and the roof of the building.
Who controls the Common Property?
The COMMON PROPERTY is controlled by the Body Corporate, the OWNERS, and
there are NO exception to this rule. The practical implication of this
is that an individual member’s voting power is governed by the member’s
percentage ownership of the entire SCHEME and this is known as the
PARTICIPATION QUOTA (PQ)
A
Participation Quota (PQ)
The PQ of a Section is expressed as a decimal fraction correct to 3
(three) places. For example, the total floor area of all SECTIONS in
the SCHEME is 2550m˛, and the floor area of a certain SECTION is 130m˛,
therefore the PARTICIPATION QUOTA of that SECTION will be 0,051. The PQ
allocated to the SECTIONS in a SCHEME will always determine:
a) the value of the vote of the owner of the SECTION;
b) the undivided share in all the Common Property of the SCHEME which is allocated to each SECTION and;
c) the proportion or liability in which the owner of each SECTION shall make contributions (LEVY) to cover the estimated common expenses of the SCHEME and;
d) the liability of each owner of a SECTION for the payment of a judgment debt (summons) of the Body Corporate.
What is LEVY?
This is the costs incurred in running a SCHEME and have to be paid by the Body Corporate (OWNERS
normally on a monthly basis, monthly in advance.
These costs can include the following:
· Municipal rates and taxes
· Water and electricity used on the Common Property (CP)
· Repairs and maintenance to the Common Property
· Wages and salaries of any staff appointed, and any other expenses the Body Corporate deemed necessary.
These costs are paid by individual owners and is calculated in accordance with the PARTICIPATION QUOTA (PQ) of their UNIT unless the Body Corporate by means of a SPECIAL RESOLUTION allocated a different value to a particular UNIT.
Can the LEVY be changed at any time
YES! In an emergency the Trustees can impose a SPECIAL LEVY to cover any expense of an unforeseen nature. In addition the BODY CORPORATE can approve a SPECIAL LEVY to cover the cost of improvements to the COMMON PROPERTY.
All the above are based on the existing SECTIONAL TITLE ACT NO 66 of 1971.
For any further questions you can write to Jonathan Basson at Jonathan@no1estates.com