UNDERSTANDING SECTIONAL TITLES IN SOUTH AFRICA
Communal living (i.e. Complexes and Estates) in South Africa is becoming increasingly popular due to the elements of safety and security. The majority of these communities include properties which are registered under Sectional Title Ownership Schemes.
What are Sectional Titles? We aim to shed some light on this form of property ownership in South Africa with the aim of giving you a clearer understanding of what buying a property within a ‘Sectional Title Scheme’ involves.
Sectional Titles Explained
Sectional titles are a form of property ownership where individuals or entities own a section or unit within a larger building or complex (i.e. a home within a complex). This form of ownership allows for communal living while granting individual owners exclusive ownership rights over their respective sections of the property. Common examples of sectional title properties include apartment buildings, townhouses and gated estates. The legal framework for sectional titles in South Africa is governed by the Sectional Titles Schemes Management Act (STSMA) and the Community Schemes Ombud Service Act (CSOSA).
Legal Complexity and Regulations
The legalities surrounding sectional title properties can be complex and require a thorough understanding of the relevant legislation, however, this is for your (the resident’s) benefit. The STSMA and CSOSA set out various regulations and requirements that sectional title property owners and managing bodies (i.e. Managing Agents) must comply with. These regulations cover aspects such as governance, financial management, dispute resolution, maintenance, and insurance. Non-compliance can lead to legal disputes, financial penalties, and even the potential loss of ownership rights.
Advantages of Sectional Title Properties
There are tremendous advantages with purchasing a sectional title property within a community. These benefits include:
- Limited upkeep – A home purchased as a sectional title unit within a community enjoys the benefit of garden services, security and maintenance provided by the complex’s body corporate.
- Home insurance - Home insurance for the physical home is covered through the complex’s insurance structure.
- Security – Complex’s usually include some for of additional security for the community within, providing a safer living environment for you and your family.
- Communal facilities – Some complexes include communal facilities such as children’s play areas, swimming pools and communal braai areas, which are maintained on your behalf.
- Outdoor space – Complexes usually include a park or ‘green belt’ area as part of their zoning regulations, meaning you have the opportunity to enjoy a natural environment within a few meters from your doorstep.
How we can assist with Sectional Title Property Ownership?
E. W Serfontein & Associates specializes in property law, offering valuable assistance and expertise in navigating the legalities of sectional title property ownership in South Africa.
Our experience covers:
- Legal Advice and Due Diligence: We can provide comprehensive legal advice to potential buyers or sellers of sectional title properties. Our team can conduct due diligence on behalf of clients, reviewing property documents, title deeds and relevant agreements to ensure that all legal requirements are met and potential risks are identified.
- Drafting and Reviewing Contracts: We can draft and review contracts related to the purchase, sale or lease of sectional title properties. These contracts include offers to purchase, sale agreements, lease agreements and management contracts. By ensuring that these contracts are legally sound and protect our clients' interests, we aim to help prevent future disputes and minimize risks for Sectional Title Property Owners.
- Governance and Compliance: Sectional title schemes require the establishment of a body corporate or homeowners' association to manage the communal aspects of the property. Our dedicated team can assist in setting up these entities, ensuring compliance with applicable regulations, and drafting the necessary governing documents, such as the constitution and rules. They also provide guidance on the roles and responsibilities of the body corporate or homeowners' association and help resolve governance-related disputes.
- Dispute Resolution: Our team specializing in sectional titles can provide effective dispute resolution services, including assistance in resolving disputes between parties such as home owners, the managing agents and external parties. These disputes may include financial disagreements, maintenance issues, noise complaints, or breaches of rules and regulations.
Our Expertise in Legislative Changes and Updates
The legal framework governing sectional titles in South Africa undergoes periodicnand updates. E. W. Serfontein & Associates is constantly keeping on top of these changes, which are crucial for property owners and sectional title management bodies to understand. Due to our expertise in specializing in property law, we are well-equipped to remain abreast of legislative developments and ensure that our clients are fully informed and compliant with the latest regulations. They can provide guidance on how legislative changes impact sectional title properties and help clients adapt their practices accordingly.
Sectional title properties and their increased demand present unique opportunities, as well as legal complexities in South Africa. Navigating these intricacies requires specialized knowledge and expertise. Engaging the likes of E. W. Serfontein & Associates as a legal firm specializing in property law is invaluable for individuals and entities dealing with sectional title properties.
From providing legal advice, drafting contracts and resolving of disputes, we are equipped to offer comprehensive assistance and guidance as and where required. By leveraging our expertise, clients can ensure compliance with regulations, protect their interests, and enjoy living in a well-managed community.
Want to know more? Please get in touch. We look forward to hearing from you.