BUYER’S CHECK­LIST

Weekend Argus (Saturday Edition) - - PERSONAL FINANCE -

As the prospec­tive buyer of a sec­tional ti­tle prop­erty, you should ask for:

The most re­cent fi­nan­cial state­ments of the body cor­po­rate. You should check whether the scheme has ad­e­quate re­serves and that it is in a sound fi­nan­cial po­si­tion. Ac­cord­ing to the Sec­tional Ti­tles Act, a scheme is re­quired to make “rea­son­able pro­vi­sion” for main­te­nance and any un­ex­pected ex­penses that may oc­cur. If a scheme has suf­fi­cient re­serves, this re­duces the need for a spe­cial levy. A copy of the sec­tional ti­tle plan of the scheme. The body cor­po­rate rules. The con­veyancer’s cer­tifi­cate, which was lodged at the Deeds Of­fice when the scheme was first reg­is­tered. It con­tains the mu­nic­i­pal con­di­tions and servi­tudes that ap­ply to the scheme, as well as any con­di­tions the de­vel­oper may have im­posed on the scheme. A servi­tude is, ba­si­cally, a right of way, al­low­ing the mu­nic­i­pal­ity to pro­vide wa­ter, elec­tric­ity and san­i­ta­tion ser­vices to neigh­bour­ing prop­er­ties in the area. It is im­por­tant to know where the servi­tudes on your prop­erty are, so that if, for ex­am­ple, you do a ren­o­va­tion, you don’t end up dig­ging up the lo­cal wa­ter sup­ply pipes.

The rates charged for the unit, the monthly levies and any spe­cial levies.

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