Deciding on whether to buy into sectional title schemes: a townhouse complex or block of flats, entails weighing up the advantages and disadvantages to see if they align with your lifestyle needs.
If you plan to live permanently in a scheme, avoid buying a home in a sectional title scheme with a high percentage of rental units.
Units that aren’t owner-occupied may be filled with disorderly vacationers and the owners may not be concerned about the running of the section.
For your convenience, below is a compiled list of the advantages and disadvantages.
The advantages of owning a sectional title property rather than an individual property typically include:
If you’re planning to buy a sectional title property, it’s important to ensure that it is operated well and that there aren’t any major difficulties with the common property.
If there are, you could be liable to contribute towards the costs of repairing such problems.
Before purchasing a sectional title property, you should check (or ask your attorney to check) the following:
This can be done by asking the trustees to show you a copy of their registered section plan.
Although a Section 25 Right is quite rare, it’s important to know about it if it exists, as it might change the nature of the scheme you’re thinking of buying into.
If these areas are in poor condition, it’s a good sign of poor management and high future expenses.
If not, it may be problematic to obtain agreement to introduce it and you are not allowed to install your own dish.
Evaluate the rules to see if there is anything you would find difficult to comply to.
It’s important to ask to see a copy of the latest audited accounts, paying particular attention to the financial reserves for future maintenance and repairs. A healthy reserve fund is a helpful sign of a well-run scheme.
Van Deventer & Van Deventer Incorporated can assist your Body Corporate deal with the thornier issues of Sectional Title Scheme Management.
Read more on Sectional Title Development Schemes.
Get legal advice if you need to discuss yours.
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