Do homework before entering the sectional title property market

SECTIONAL-title ownership is largely misunderstood by many prospective buyers who are not fully aware of what shared ownership of common property schemes entails, says David Rebe, chief executive of Sandak-Lewin Property Trust.

“It’s essential for first-time buyers to understand exactly what sectional-title ownership entails, including the legalities and responsibilities of common property,” he says.

“First and foremost, it must be understood that while the individual unit itself is personally owned, the common property areas are all shared. Firsttime sectional-title buyers need to know they are essentially buying into a community where the trustees and the body corporate are involved in the decision-making processes regarding the communal property.”

Rebe provides the following tips for first-time buyers entering into a sectional- title scheme:

● Assess all costs. You should be aware of costs relating to ongoing repairs and maintenance to common property. Ongoing shared costs include levies, a monthly contribution towards the running and maintenance of the complex or building, and municipal rates and taxes. There are also ad hoc, shared costs which contribute towards funds needed for irregular maintenance, including refurbishments and security installations or repairs.

● Investigate hidden costs. You need to be aware of any hidden costs which fall part of the scheme such as the deposit needed for the council to connect electricity and water in the unit, as well as knowing whether any renovations to common property are in the pipeline which the new property owner may be required to contribute towards.

● Know what you are covered for. Under body corporate insurance, which the owner contributes to through monthly levies, units are usually covered against fire, lightning and explosions, along with items of a common nature and permanent fittings including geysers and walls.

Know your obligations. You need to understand the various obligations to be adhered to, including making sure the property meets certain minimum standards such as ablution facilities and hot and cold running water to name a few. Other obligations include repairing and maintaining the structure of the property and making sure the property is insured properly.

● Understand the financials. It is essential to research and fully understand the financial status of the sectional-title scheme. If the financials are in disarray you could find yourself responsible for servicing any existing debt. You have the right to access such information from the body corporate or managing agent.