Sectional title is a form of ownership whereby the owner holds/owns title to a section of a building that has been divided in to two or more sections.
It is a building that has been divided into a number of sections to be sold under Sectional Title in accordance with the Sectional Title Act No.95. It is often simply referred to as the scheme.
Yes, it is governed by the Sectional Title Act No. 95, of which full copies are available if required – just ask your agent.
There is no limit to the number of sections in a scheme.
The section or sections he or she has purchased as well as an undivided share in the portion of the property know as the common property.
Common property is the land included in the scheme along with all the part/s of the building/s that are not included and described in the various sections. Typical examples would be driveways, gardens, paved areas, staircases, under cover verandas, parking bays, walls, foundations and the roof.
The common property is owned by the body corporate.
A Body Corporate is the legal term for the combined registered owners of all sections in a sectional title scheme.
A Body Corporate is managed by trustees who are elected by the owners at an annual general meeting (AGM). The Body Corporate may employ people to work for them, e.g. gardeners, cleaners, etc. In such cases, the Body Corporate is responsible for the payment of salaries which are obtained from the levies that owners pay.
A Board of Trustees is a management committee elected out of body corporate members (owners of sections) or their appointed representatives, and who are tasked with managing the daily affairs of the body corporate as well as its financial affairs.
These are areas that have been allocated exclusively to a specific section and which then befall the owner of that section, e.g. an enclosed yard.
A Participation Quota is used to calculate the financial portion of each owner towards:
Please note, PQs are shown on the Sectional Plan of the Scheme.
It is the size of the section you own in relation to all the sections combined. Example, you have purchased 50m2 in a scheme of 15 units all of the same size. Your PQ is therefore 50m2 of 750m2 which is equal to 6.667%.
Rates are paid separately by each owner from the date of Registration to the local authority.