Basic Information

One of the biggest investments ever made by a person is buying a property.It is the duty of every owner buying a unit in a scheme to ensure that their Trustees and their Managing Agent are running the complex in a professional manner so that their investment can grow and prosper.

What is Sectional Title?

Sectional Title is a lifestyle that has become increasingly popular in South Africa for reasons of convenience, ease of maintenance and security. It brings people from diverse backgrounds, cultures, age groups and interests together into a stable and hopefully harmonious environment. This is all governed by the Sectional Title Act No 95 of 1986 (“Act”) , which lays the framework for running such a scheme.

Who is the Body Corporate?

All registered owners of units in a scheme are members of the Body Corporate.

Who are the Trustees?

The members of the Body Corporate, usually at an Annual General Meeting (“AGM”) or a Special Meeting if necessary, appoint trustees. As per the Act a minimum of 2 Trustees have to be appointed and the members of the Body Corporate at the AGM determine the maximum number of Trustees. Work undertaken by Trustees is voluntary and there is no remuneration to them for running the scheme on a daily basis. Any person, including individuals who are not owners, may become Trustees, provided that the number of Trustees, who are owners, exceed the number of Trustees who are not owners.

The Trustees elect a Chairperson, who holds office until the next Annual General Meeting.

What do you actually own?

Each owner owns and is responsible for the inside of their unit. You can paint, decorate and alter the inside, providing that some alterations may require the consent of the municipality and the Body Corporate. The outside of the complex is owned by the Body Corporate andthat is why permission has to be obtained from the Trustees in order to erect awnings, satellite dishes, TV aerials or any other exterior alterations.


What is Common property?

When buying into a Sectional Title Scheme you are buying a section, known as a unit, and a share of the common property. Common Property is part of the scheme that does not form part of any particular section such as gardens, pools, driveways, corridors, lifts and entrance foyers etc.

The Common Property is controlled and maintained by the Body Corporate and some parts of the Common Property are designated as Exclusive Use Areas.

What are Exclusive Use Areas?

Exclusive use areas are part of the common property designated for the exclusive use of an owner. This means that you do not own the area but have the right to use and enjoy the area, such as carports, patios, gardens etc. for as long as you own that unit.  

What are Levies?

There are costs involved in running a complex such as municipal accounts and services which include electricity, water, refuse and sewerage, insurance, maintenance and cleaner's salaries to mentioned a few. A budget is prepared comprising of all the annual expenses for the complex. The participation quota (an owners portion of the scheme) is applied to the expenses and levies are determined. These are payable by all owners at the beginning of each month to the Body Corporate.

What are Special Levies?

Special levies are raised by the Trustees in order to improve the property or for emergency repairsonly if the Body Corporate not have enough funds. A special levy for an improvement is discussed at the AGM or at a general meeting and needs the approval of the members of the Body Corporate. It is calculated as per the participation quota of the individual units and is payable monthly over a period agreed upon at the meeting.

What are Conduct Rules?

Conduct rules should be registered with the Registrar of Deeds; otherwise they are not enforceable by law. It comprises of a set of rules and regulations, which is enforceable. Everyone in the complex must abide by these rules. Conduct rules are important as they lay down guidelines for the conduct of the occupiers of units or their guests. Well-written rules will enforce a well run complex, harmonious and a complex which owners are proud to be a part of and therefore increase the value of your investment.

Managing Agent

Managing and administering a complex is a specialised and time-consuming business, therefore the Trustees could entrust a Managing Agent to undertake this task. There are many functions, which a Managing Agent has to undertake. An example of a few tasks is to prepare budgets, ensure collection monthly levies, , keep accounting records, arrange for quotations for repairs and maintenance, send out notices and generally assist the Trustees with tasks to ensure the smooth running of the scheme.

A good Managing Agent should have a vast knowledge of the Sectional Title Act so that they can assist the Trustees with rules and regulations and ensure that the complex keeps a sound financial bank balance. This in turn will ensure a well-maintained complex.

Owners should support, assist and value the effort of Trustees, as many hours of hard work and planning are spent ensuring the smooth running of the complex.