This guide was developed by seri and the centre for urbanism and built environment studies cubes based at wits university. Jun 09, 2018 while the csos act covers all community schemes, sectional title stakeholders must also consider the sectional title schemes management stsma, where recent amendments have introduced several new. The long awaited sectional title amendment act 11 of 2010 has finally been published on 7 december 2010. Replacement schedule for lost or destroyed schedule of servitudes and conditions referred to in section 1b 14. With accommodation reservation websites such as and, it has never been easier to find shortterm tenants. Section 112 of the act makes it possible for the developer when opening the sectional title register, or later for the body corporate by special resolution, to make rules by which the liability.
While the csos act covers all community schemes, sectional title stakeholders must also consider the sectional title schemes management stsma. The sta thus deals with all survey and registration matters regarding sectional titles schemes. Sectional title versus freehold ownership private property. Lanice steward, md of anne porter knight frank apkf, says anyone thinking of buying into a sectional title scheme should never do so without first seeing the bcs financial statement and house rules.
South african law is based on roman dutch law which meant that the owner of the land owned any building on the land. This current statute will remain, but focussed exclusively on the survey and registration aspects of sectional titles, the management issues having been stripped out and moved to the sectional title schemes management act. The common property is maintained by the body corporate every owner in the scheme. Practically however, the rights that the owner has in respect of the exclusive use area, are the same. In south africa, condominiums are known as sectional title properties, and are governed by the sectional titles act no. Body corporate of the sectional title scheme seascapes v.
This article takes a critical look at recent legislation regarding the maintenance of common property in sectional title schemes. From the inner brick of the double brick wall, to the mid point in the ceiling and floor. The five essentials of sectional title insurance insurance is frequently the cause of disagreements and disputes in sectional title schemes, but it need not be if unit owners, trustees and their managing agents just keep a few basic principles in mind. Nov 12, 2014 the long awaited sectional title amendment act 11 of 2010 has finally been published on 7 december 2010.
The new regulations you need to know surrounding sectional. The sectional titles schemes management act the sectional titles schemes management act 8 of 2011 the act took effect on 7 october 2016. Background to sectional title scheme development in a very small nutshell 25012017 paddocks paddocks press newsletter 8 comments for those who own sectional title property, or are thinking of becoming a sectional title owner, its worthwhile having a basic understanding of how a sectional title scheme is developed. A section is the inner shell of the building that you own. A critical analysis of the financial and social obligations imposed. The sections are shown on the sectional title diagrams. Strobe statementchecklist of items that should be included. Everything you need to know about levies in sectional title. A guide to sectional title living this document contains important information regarding sectional title living. Nov 24, 2015 sectional title on the other hand, describes separate ownership of units or sections within a complex or development. This guide tries to provide a brief description and. Shortterm letting in sectional title schemes thinking.
The most important amendments for estate agents are discussed below. By barbara van rooyen, partner in the property and conveyancing team there are a substantial number of duets in richards bay. The sectional titles schemes management act 8 of 2011 aims. Constitutionality of the rules governing sectional title schemes. Maintenance of common property in sectional title schemes. What she did was a crosssectional study, and the document she mailed out was a simple questionnaire. Sectional title schemes property power bac examples of properties that may be sectional title units are flats, townhouses, semidetached houses, duet houses, holiday apartments, shops or office blocks. Then in 1973 the first generation sectional title act came into law and for the first time multiple owners could own a section in a building and all the owners together owned the. Banks and financial institutions are reluctant to lend money to purchasers of share block flats. Property ownership sectional title versus share block. The new act have been welcomed by many industry experts thus far as a long overdue addition.
By dr carryn melissa durham many people own property in sectional title schemes for investment purposes, and they let their units out to tenants for rental income. Case control studyif applicable, explain how matching of cases and controls was addressed crosssectional studyif applicable, describe analytical methods taking account of sampling strategy statistical methods 12 e describe any sensitivity analyses continued on next page. A sectional title scheme is made up of individually owned sections and common property. The legal entity that exists to manage and control the common property, made up of all owners of units in the scheme. The new sectional title legislation some noteworthy. Articles, sectional title the sectional titles schemes management act 8 of 2011 the act which came into operation on 7 october 2016 had the impact of amongst other amendments repealing section 37 of the sectional titles act 95 of 1986 which section dealt with special levies. Many people own property in sectional title schemes for investment purposes, and they let their units out to tenants for rental income. The amendments deal mostly with registration aspects, but include some amendments to the standard management rules. Condominia the plural of condominium in latin originally referred to territories over which two. The law relating to sectional title schemes can be quite confusing. Sectional title faq coppin attorneys attorneys at law. Background to sectional title scheme development paddocks. Upon converting to sectional title you obtain a title deed which gives you ownership of the unit. A scheme can be a vertical block of apartments or a one level row of townhouses which may be attached or detached.
This case concerns a development scheme in terms of the. Townhouse complexes and many apartment blocks typically have this form of title. In the case of sectional title units, different people each own a portion of a building or buildings. There are townhouse developments and, in the luxury market, properties can cost as much as r50 million. What she did was a cross sectional study, and the document she mailed out was a simple questionnaire. Ownership in a sectional title scheme also has some additional costs. The amendment act aims to clarify, define and redefine a number of issues related to the everyday dealings with sectional title concepts. To the best of our knowledge nedbank is the only financial institutions which will do so. Sectional title ownership is possible in highrise buildings, lowrise clustered structures or entirely separate buildings. A duet sectional title scheme is normally formed when a property is too small to be subdivided, but is large enough to accommodate two dwellings. Sectional title definitions and terms explained thinking. Is a piece of land with a buildings where individual owners own portions of the buildings and coown the common property. Residential sectional title properties, unlike conventional residential freehold properties, imposed coownership, comanagement and expense sharing amongst owners in this type of development. Moreover, due to the increasing number of homeowners associations and sectional title schemes and other community housing developments, more user friendly legislation was sorely needed.
As an owner of a unit in a sectional title scheme, you own the following. Alteration, amendment, substitution or cancellation of registered sectional. Management rules prescribed in terms of section 102a of the sectional titles schemes management act, 2011 act no. No, sectional title developments can include homes, offices, shops, factories, holiday accommodation, etc. Occupational rental if the occupation date does not coincide with the transfer date then the party having occupation of the. What many duet owners dont realise is that they are part of a sectional title scheme and. It draws attention to some faults and offers practical solutions. Pdf accounting and auditing of sectional title property. No one owns a specific brick in the driveway or a particular plant. In reading public health research, you may encounter many terms that appear to be used interchangeably. As a member of a share block company you have a share certificate indicating your ownership of shares in the company and an agreement known as a use agreement with the company in terms of which you have the right of occupation and use of.
Basic understanding of sectional title often the only common factor of a sectional title lifestyle is ownership of a unit in the scheme in which they live. Every owner owns an undivided nonspecific share of the common property. Sectional title on the other hand, describes separate ownership of units or sections within a complex or development. Different legal consequences flow from these two types of exclusive use areas. When you buy into a sectional title complex, you purchase a section or sections and an undivided share of the common property.
Condominium is a latin word formed by adding the prefix contogether to the word dominium domain, property, ownership. Sample standard sectional title residential property sale agreement page 4 5. Purchase prices for sectional title units are almost 25% to 30% higher than those of similar share block flats. It determines the value of the vote of an owner of a section in the case. Of course, not all sectional title properties are small, relatively inexpensive apartments. If you want a more detail read our free introduction to sectional titles booklet agm. Body corporate of the sectional title scheme seascapes v ford.
In cases where the body corporate does not have enough money or. Everything you need to know about levies in sectional. In schemes that are located in holiday destination hotspots, city. Sectional titles schemes management act 8 of 2011 south. Stakeholders such as owners and investors in sectional title property are in most cases not directly involved in the management thereof, and place reliance on. In terms of the act the participation quota determines the following matters. Your section may include an area that is not directly attached to your main dwelling area, such as a garage, storeroom or servants quarters.
Pdf a guide to sectional title in south africa michael. Introductory booklet for sectional titles graham paddock 3. Extending a section in a duet sectional title scheme. Latest rule amendments a range of amendments to the regulations under the sectional titles act was published on 14th march, coming into effect on 14th april. Sectional title is the fastest growing sector of the sa housing market and because many of the units on offer are affordable, these people are sitting ducks for the sectional title. Latest rule amendments under sectional titles act in south africa. Definition of sectional title deed substituted by s.
497 450 1267 252 500 449 1663 1021 146 1051 1424 497 758 86 474 1578 854 38 663 669 852 1037 1256 772 851 437 13 701 159 217 332 1150 1308 208 47 738 1003 533 869