WHAT IS A SECTIONAL TITLE UNIT?
A Sectional Title Unit consists of a part of a building or a separate building on a piece of land that has been converted into a sectional title scheme. The owner’s ownership of the unit includes ownership of an undivided share in the common property. All the sections together with common property comprise “the Scheme”.
WHAT IS THE COMMON PROPERTY?
This comprises the areas which are utilised by all owners, e.g. the grounds, driveways, roads, recreation facilities, corridors, entrance areas and exterior of the building.
WHAT ARE EXCLUSIVE USE AREAS?
Parts of the common property e.g. parking bay or garden area, etc may be delineated as an exclusive use area and the right to the exclusive use of such area may then be conferred on an owner of a section. Exclusive use rights can be acquired and held in terms of the rules applicable to the Scheme or by way of Notarial Cession.
IS OWNERSHIP CONFERRED UNDER SECTIONAL TITLE?
Yes, once the transfer is registered in the Deeds Office the title holder is the owner of the unit. A Title Deed is issued upon registration of transfer of the Sectional Title Unit as proof of ownership. A Notarial Deed of Cession is issued in respect of certain exclusive use areas.
WHAT IS THE DIFFERENCE BETWEEN A SHARE BLOCK SCHEME AND SECTIONAL TITLE SCHEME?
A share block Scheme involves the selling of shares in a share block Company which owns a building, coupled with an agreement that entitles the share-owner to occupy a portion of the building. These shares cannot be mortgaged and the transfer of the right to occupy is affected by the registration of a share transfer with the Registrar of Companies as opposed to registration in the Deeds Office.
WHAT IS A REGISTERED REAL RIGHT OF EXTENSION?
A developer can, when building a sectional title scheme, reserve to himself the right to extend the scheme by the addition of certain units and/or buildings at a later stage. The plans of such a proposed extension must be drawn and approved at the time that the scheme is first opened and registered. If the right of extension is not exercised or reserved, the right to extend the Scheme vests in the Body Corporate. Any prospective purchaser must be made aware of the existence of a reserved right of extension in the agreement of sale failing which he/she is entitled to resile from the contract.
WHO CONTROLS THE SCHEME?
The Body Corporate is responsible for the control, administration and management of the Scheme.
WHO OR WHAT IS THE BODY CORPORATE?
All the owners of sections in the Scheme automatically 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 and especially with bigger schemes, the Trustees utilise the services of a Managing Agent to assist them. Ultimately, however, the control lies with owners who make decisions on the administration of the scheme at a general meeting.
WHAT ARE LEVIES?
The levy comprises all the anticipated costs of the running of the Scheme and usually includes:
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 proper running and maintenance of the Scheme. The budget will be made up from various expenses, such as the items mentioned in the previous paragraph. The annual total is divided into monthly instalments which in turn are collectively paid by the individual owners. The levy payable by any one owner is calculated with reference to the floor area of a given section, in relation to the total floor area of all the sections in the Scheme. This is referred to as a section’s participation quota.
Thus: Total annual budget divided by 12 = required monthly budget for the Scheme
Floor area of owners section divided by the total floor area for all sections x 100 = percentage of monthly budget payable by the owner.
WHAT ARE “SPECIAL LEVIES”?
If insufficient funds are available for maintenance and/or improvements or unforeseen, necessary expenses become payable, a special levy may be raised by the Body Corporate at a general meeting. Owners of sections will then be liable to make a further contribution towards levies. This special levy may or may not be payable in instalments. The questions of liability for and disclosure of an existing or possible special levy should be dealt with in the deed of sale since the owner at the time the levy was raised, is the one who is liable for payment thereof.
WHAT ARE MANAGEMENT RULES?
The Sectional Titles Act contains provisions regarding the management of the Scheme, e.g. how Trustees are elected, what the obligations of the Trustees are, what the voting procedure is at general meetings, and so forth. It is possible for the Body Corporate, by unanimous resolution, to amend, substitute, add to or repeal the Management Rules from time to time. Copies of the Management Rules that apply to any scheme can be obtained from the local Deeds Registry.
WHAT ARE CONDUCT RULES?
Each Scheme has a set of conduct rules to regulate the conduct of owners in the Scheme such as rules regarding the keeping of pets, refuse removable, etc. It is possible for the Body Corporate, by special resolution (75% majority), to amend, substitute, add to or repeal the conduct or rules from time to time.
WHAT ARE THE DUTIES OF AN OWNER OF A SECTIONAL TITLE UNIT?
An owner shall:
CAN A UNIT BE EXTENDED, CONSOLIDATED OR SUBDIVIDED?
Yes, but only after:
Calling investors! This spacious flat in a prime location is just right for you. On the first floor of a small, well-managed block, there are four spacious bedrooms, three with ample bics, serviced by two bathrooms, one with a bath with shower unit plus a built in shower. The other en-suite to the master bedroom is shower only. There is also a good sized lounge that can accommodate a dining table. The galley-style kitchen with new countertops and plumbed for two appliances, and has outside access.
The biggest bonuses are: access from the lounge and end bedroom to a sunny, enclosed, east-facing balcony. A gas fireplace in the lounge is a real feature, and there are lots of bookshelves. Hardwearing carpets bring warmth to the living areas and bedrooms. A single automated garage comes on the title deed but there is also an undercover outside parking bay and ample street parking in the adjacent parking area. Also included, a downstairs shared storeroom and a staff bathroom shared with the block. The resident cat will attest to its pet friendliness – even dogs are allowed!! Location-wise, on the Jammie Shuttle route and walking distance to major schools in both directions, you can’t do better than this.
It is nearly Spring, and if you are thinking of selling it is an excellent time, and to make things even more special we have an awesome package deal for sectional title sellers that includes 360-degree video which will be shot by our professional photographer in addition to a floor plan.
The combination of the floor plan and the 360-degree video means that after one-hour long visit by the marketing team tenants do not have to be inconvenienced and we can actually get to the point of an offer to purchase subject to viewing. Not only is there no extra cost for this service, talk to us about our September Spring Sectional Title Promotion and pay less! We always provide an in-depth ‘Complex Review’ for your particular sectional title development highlighting all activity in the last twelve months to make sure you are fully informed on pricing and market issues.
For the full details of all marketing benefits that we are offering for Sectional Title this Spring click here.
If you are thinking of selling Spring is always a good time for Southern Suburbs sectional title for a host of reasons so if you want to liquidate some capital call Lisa Rowell for a no obligation valuation now, on 082 844 0800
Rondebosch Oaks is located between the ancient oak-lined roads of Albion and Rouwkoop Roads. It has been blessed with lavish lawns and greenery as well as glorious views of Table Mountain’s Devil’s Peak. Add to that an electric fence and 24 hour guardhouse at each entrance and you have an oasis of tranquility and safety.
Rondebosch Oaks has a variety of apartments ranging from studio units, 1,2 or 3 bedroom apartments as well as the highly sought after Penthouse apartments.
Rondebosch Oaks was built in two phases, both selling out in record time. Each phase has its own entrance. There are communal laundry facilities located in each block and each apartment comes with its own designated parking space that is fully included.
Rondebosch Oaks has a perfect mix of young professionals and students aspiring to be young professionals. It has an active community spirit and neighbours often arrange get-to-know-your-neighbour events in the communal gardens.
Rondebosch Oaks is within walking distance of both Newlands Rugby and Cricket most well-known schools. The UCT Jammie Shuttle stops a few minutes walk from the complex and there are plenty of bus or taxi stops. The complex is also very to restaurants and two large shopping centres.
A unit in a sectional title scheme can be amended by subdivision, consolidation or extension thereof.
When consolidating or subdividing a section, the owner requires the consent of the trustees of the body corporate. The extension of a section requires a special resolution, meaning that 75% of the owners in the sectional title scheme must vote in favour, because an extension will affect the participation quota of all the other sections in the scheme.
For all three changes, a draft sectional title plan has to be lodged with the Surveyor-General for approval, and the approval of the relevant municipality is also required.
To make sure you follow the right legal processes and lodge the correct documentation, contact your STBB conveyancer for assistance.
Located in the heart of the Southern Suburbs and known for being a quiet little suburb, Kenilworth is close enough to all of the family orientated facilities which is ideal for young family.
Bring on that flair in Kenilworth:
Cedar Wood is a small complex both attractive, secure and well managed. The apartment is located on a quiet street with a park close by for the children to play in. Perfectly positioned near to superb restaurants, St James Church, Spar and the new Pick n Pay on Rosmead Avenue. Read more about this Kenilworth apartment for sale.
Contact Chas Everitt agent Charlene Faint on 083 765 2116 for further queries.
Pet owners should familiarize themselves with the prescribed conduct rules in a sectional title scheme before they commit to purchasing or occupying a unit therein. This is because the legal principle “caveat emptor” applies and a buyer is expected to have knowledge of the rules applicable to the scheme.
Some schemes have rules which prohibit the keeping of any pets. Others provide that the owner/occupier of a section may only keep certain pets with the written consent of the trustees, which consent may not be unreasonably withheld. In the latter instance, should an owner feel that the trustees have unreasonably withheld consent, a court may be approached for a declaratory order.
For more information, contact us at firstname.lastname@example.org
Original Source: STBB