have to find the money for an unforeseen special
levy. Check the minutes of the meeting of the
body corporate and obtain a warranty from the
owner from whom you are buying your unit that
no special levies are payable, or that the seller
will be liable for the payment of such a levy.
Exclusive use areas
The balcony on which you are standing might be
part of the unit or might be an exclusive use area. An
exclusive use area forms part of the common property
and it may be ceded or allocated to an owner for
exclusive use by that owner. The rules of the scheme
often provide for a lesser levy on exclusive use areas,
which can be attractive in the case of large areas such
as gardens or large terraces. But be warned, the levies
on these areas can be exorbitant. An exclusive use
area can only be ceded to an owner of a unit in the
scheme and you cannot for example sell your garage
to your friend in the sectional title scheme next door.
Parking is always a bone of contention in sectional
title schemes and insufficient parking can cause
considerable friction between owners. Peruse the
sectional title plans to ensure that there are sufficient
visitors parking bays. If the management treats
parking bays as exclusive use areas, ensure that you
understand the nature of your right to a bay. If it is
an exclusive use area, is it allocated to you in terms of
the rules of the scheme. In that event it is inextricably
linked to the unit, or will it be ceded to you, and you
will hold it in terms of a notarial deed which can be
ceded to another owner in the scheme.
Improvements to the unit
You can change the interior of the unit as you like, but
your ability to extend the unit or change the exterior
is limited. If you want, for example, to enclose the
balcony and make it part of the unit, you will have
to obtain a special resolution from the owners. If
you want to change the exterior of your unit, you
have to comply with the rules of the scheme, failing
which the trustees have the power to stop you. All
sectional title schemes are governed by management
and conduct rules. Most of the management rules are
prescribed and cast in stone. They provide for matters
such as the appointment of trustees, annual general
meetings, voting rights and the provisions relating to
the effective management and convenient living. The
rules have evolved in time and are there to protect
rights of owners and to ensure that sectional title
schemes are properly managed.
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Residential Handbook 2016/17
You should peruse the management rules and the
conduct rules. It might be that you are an animal lover
and have two dogs, a cat and a budgie. The standard
conduct rules provide that an owner may not without
the consent of the trustees keep an animal on the
property. Certain schemes do not allow for animals
at all or only animals of a certain size. This would
immediately affect your decision about the purchase
of the unit. You might want to have a braai on the
balcony every night during summer, but the rules
might well provide that you are not allowed to do
so, or that you can only use a gas braai. The rules can
also be quite prescriptive regarding the use of the
swimming pool and you might not be able to invite
your family for a Sunday lunch because you are only
allowed to invite two guests to the swimming pool
area.
Voting rights
The value of your vote at the meetings is determined
by the size of your unit, and the smaller your unit the
less value your vote has. The prescribed management
rules provide for the protection of minorities, but
you can still be outvoted by the majority of the other
owners. You are therefore not in full control of your
unit as would have been the case had you owned a
freehold property.
The other owners
It is wise to do some research and ask questions
about the conduct of the other owners. You might
not want a neighbour who has a party every night,
or conversely, a very difficult owner who complains
about every move you make.
Owning a sectional title unit clearly has its pleasures
– you do not have to mow the lawn or clear the
swimming pool on a Saturday and costs such
as insurance, repair and maintenance are shared
between owners. Sectional title units are usually
more affordable than free standing properties and
provide a good opportunity to put your toes in the
property waters. But do your homework and beware
of the pitfalls.
RESOURCES
Norton Rose
www.reimag.co.za