Jonathan@no1estates.com
 

 SECTIONAL TITLE BUYER’S CHECK-LIST

THE PROPERTY

Have you checked the description of the Section which you are planning to buy? – number, size, participation
quota, exclusive use areas etc?

Do you know exactly what you are buying o you can’t buy what the seller doesn’t own! If in doubt, ask to see a copy of the registered Sectional Plan.

If the section has been extended or altered in any way, have those alterations been properly registered

Are the exclusive use areas (if any) registered, or protected by the rules? – It can make a big difference

Have you checked the condition of the Common Property – paint-work, plaster, signs of dampness, gardens,
driveways, pool, lifts, etc?  Common Property in poor condition means high future expenses and indicates poor control and management

Is the security adequate and in good working order?

       THE RULES

·          Have you seen the registered Rules of the scheme? – It is your right to see them before you make your 
   decision.

·          What is the Rule about pets?  Find out before you make a final commitment – it will be too late afterwards!

·         
   Only registered rules are enforceable, unregistered rules may indicate the wishes of the body corporate, but 
   they cannot be enforced.

                FINANCIAL MATTERS

·          Have you checked the monthly levy for the section which your are planning to buy?

·          Are there any compulsory extras.

·          Is the seller willing to warrant in writing that there are no special levies in force or due.

·          Ask to see a copy of the latest audited accounts – the seller will have a copy.

·          Does the Body Corporate have adequate financial reserves for future repairs and maintenance?

·          If there are lifts in the building, are they covered with a full maintenance contract? – Lift repairs are very    
   expensive!

OTHER PRECAUTION

Has a Section 18 Right to Extend the Scheme/Building been registered? – At the time that the Sectional Title register was opened, the developer may have reserved a right to come back some time in the future to extend the scheme by adding extra buildings or extending existing buildings.  A Section 18 right to extend is shown on the sectional plan and must be disclosed to a purchaser in writing for as long as the right exists.  Failure to do so makes the sale voidable at your discretion.  A Section 18 right is fairly rare, but is very important if it exists.  Your estate agent will help you with this important question

Check for possible pending litigation against the Body Corporate. – Any award made against the Body Corporate will be paid by members (registered owners) at the time that the award is made – and that could mean YOU (the new owner)!