KNOW WHAT SECTIONAL TILE IS BEFORE BUYING

Buying a flat is very different to a buying a house. When purchasing a house, you own a stand of “X” sq M as well as the outside and inside of the house and you are responsible for maintaining it.

A unit in Sectional Title is quite different in that you only own the inside of the unit, the outside and garden forms part of the common property, of which you own a share. The Sectional Titles Act of 1985 governs sectional title living and you are bound by the Act and the conduct rules of the Body Corporate. Many different types of people make a community and it is not always easy having people of different culture and morals all living harmoniously in a complex, this results in disputes, queries and quarrels.

A prospective buyer will view a unit - if the unit is suitable, place an offer to purchase without asking the right questions. If you are interested in buying into a sectional title development ask the following questions before signing an offer to purchase:

• Remember if the unit costs less than R250, 000 you can make use of the 5 day cooling off period to investigate the situation.
  
• Financial status of the Body Corporate, ask for a copy of the latest audited financials, in order to ascertain whether you are buying into a sound investment and not a bankrupt scheme. A healthy reserve ensures that there will be no call for emergency special levies.

• Conduct Rules of the Body Corporate must be read thoroughly, therefore it is up to the individual buyer to ascertain whether they can be bound by the rules - such as no pets etc. Are the rules registered with the deeds office? If not they are not enforceable.

• Is the common property in a good state or is it in a poor condition? This will result in either an increase in levy or a special levy so that repairs can be instituted.

• Ask to see a copy of the Sectional Title Plan of the complex, so that you can determine the participation quota and levy pertaining to the section. Exclusive use areas and common property are also clearly demarcated on the plan. It is important that you are aware of whether certain areas pertaining to you are registered as exclusive use or common property as they are subjected to different rules within the Sectional Title Act. If the plans are not available, ask your agent to contact the Managing Agents.

• Is litigation pending? As this could result in special levies.

• Is it the right complex for you? A retired couple buying into a complex occupied by families with children cannot reasonably expect the rules of the complex to define a quiet spell in the afternoon. Similarly young couples should not buy into a scheme occupied by older people.

View your purchase as an investment and attend important meetings like the Annual General Meeting so that you can become involved in decisions taken and you will also become more aware of problems arising in the complex.

Check List