STRATEGIES
Buying a Sectional Title Home
Your rights vs the rights of the body corporate
BY MARIUS TINNEY-CROOK
W
hen buying a sectional title home, you
have the right to check the financial
statements of the body corporate to
ensure that the finances are sound before making
your purchase – request these through your agent
when doing your homework on the property.
Similarly, you have the right to ask for a copy of
the body corporate’s insurance policy and proof that
all levies and rates of the unit are fully paid by the
previous owner, before you take ownership.
The onus is on the owner to pay monthly levies
to the body corporate, attend all annual general
meetings (AGMs) and ensure that their home is
always in a state of good repair. The common areas
need to be kept neat and tidy, usage of them need
not interfere with the rights of other owners and they
must be used for their intended use, for example, you
may not use a designated braai area as a parking bay.
Note that often rates will need to be paid directly to
the municipality, and this is not the responsibility of
the body corporate.
Benefits of shared costs
One of the biggest draw cards of owning a sectional
title is that you get to enjoy shared facilities, such as
the swimming pool, tennis courts and club houses,
without the financial stress of constantly maintaining
and repairing them.
The body corporate is responsible for maintenance
and repairs of shared areas, which is billed to each
owner as part of the levies.
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Residential Handbook 2015
Budget for unexpected expenses
You need to budget for monthly levies, rates and
electricity and therefore need to be aware of how
these costs are calculated. Generally, levies are
calculated at the end of every year for the following
year, by the board of trustees, who then present
the budget to the body corporate. If the budget is
accepted, the total is then equally divided amongst
the owners. Also, the larger your unit is in the
complex, the more you are levied.
A special levy may be required by the body
corporate to fund the maintenance of special projects,
such as the painting of common areas. If there are
not enough funds in the reserve, the trustees have a
right to request a special levy from each unit owner
in order to make up the deficit. Often a special levy is
an additional expense that new homeowners may not
have factored into their budget. Ensure that you ask
the body corporate whether there are plans to instate
a special levy in the near future, before making an
offer to purchase.
A sectional title home is a great alternative to a
free-standing home, especially if you’re a first-time
home buyer, looking for communal living that sees
expenses shared by all owners. Take care to do
adequate research into the kind of property that is
most likely to suit your needs and budget.
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