What is a sectional title unit?

A Sectional Title Unit consists of a section of a building/s together with an undivided share in the common property. All the sections, together with the common property, comprise 'the Scheme'.  

What is the common property?

This comprises the areas that are used by all owners, e.g. the grounds, driveways, roads, recreation facilities, corridors, entrance areas and the exterior of the building.

What are exclusive use areas?

In certain instances, parts of the common property may be defined as an exclusive use area and the right to the exclusive use of such area is conferred on an owner, e.g. parking bay. Exclusive use rights can be acquired and held in terms of the rules applicable to the scheme or by way of Notarial Cession as exclusive use rights. In many instances, areas which appear to be exclusive use may in fact be rented from the Body Corporate, in which case they do not enjoy the status of 'exclusive use rights'.

Is ownership acquired of the property purchased under sectional title?

Yes, ownership rights are registered in the Deeds Office and a Title Deed (or Notorial Cession in the instance of certain exclusive use areas) is issued upon registration of the Sectional Title unit as proof of ownership.

Who controls the Scheme? 

The Body Corporate is responsible for the control, administration and management of the Scheme.

What is the Body Corporate?

All the owners of the Scheme constitute the Body Corporate. At an Annual General Meeting of all the owners, Trustees are elected to carry out the day to day running of the Scheme. In many instances, especially with bigger schemes, the Trustees use the services of a Managing Agent to assist them.

What are levies? 

The levy consists of all the anticipated costs of the running of the Scheme and usually includes:  Rates and Taxes payable to local authority by the scheme   Water   Electricity costs relating to the lighting in the common area   Insurance replacement costs of buildings in the Scheme   Provision for anticipated maintenance expenditure   Managing agent fee   Annual audit fee   One of the main functions of the Trustees is to set a monthly levy for each unit.

How is the amount of the levy determined?

The trustees will calculate the total annual budget required for the running and maintenance of the Scheme. The budget will be made up from, inter alia, the items mentioned above. The annual total is reduced to a monthly budget, which in turn must be collectively paid by the individual owners. The levy payable by any one owner is calculated by the percentage of the floor area of that owner's section to the total floor area of all the sections in the Scheme, otherwise known as the participation quota.  

What are the management rules?

The Sectional Titles Act contains provisions regarding the management of the Scheme eg. how Trustees are elected, what the obligations of the Trustees are, what the voting procedure is at general meetings, etc. It is possible for the Body Corporate, by unanimous resolution to amend, substitute, add to or repeal the conduct of House Rules from time to time.