Sectional title is a form of property ownership used in multi-level apartment blocks, townhouses and a variety of other developments with shared facilities and areas.
It allows individual ownership of part of a property (called a “section”, which is generally an apartment or townhouse) and joint or shared ownership of all the other areas (called the “common property”, which includes the driveway, gardens, foyers, lifts, stairways, roofs, etc.).
Every section is allocated a “participation quota” that determines the size of the share in the common property that is co-owned by the owner of that section.
Every owner is a member of the “body corporate”, which is a legal entity that exists to control, manage and maintain all the common property. Often a “managing agent”, being a person who professionally manages sectional title properties, is employed to manage the common property on the body corporate’s behalf.
Sectional title developments can be residential, commercial, retail, mixed use (eg. commercial and residential), serviced apartments, retirement villages, caravan parks or resorts.
There are differences between a Home Owners’ Association (HOA) and a body corporate, however, both lay down the rules of communal living and the rules and regulations governing the estate or scheme. It is highly advisable that these are thoroughly checked before a buying decision is made.
The benefits of communal living speaks for themselves and it is ideal for those who are willing to abide by the rules and live in harmony with others on the estate. Buyers who do their research and ensure that everything is in good standing and in good order before buying stand to make an extremely good investment that will benefit their entire family. On the other hand those that rush in without checking all the facts, could well end up paying for their mistakes for years to come in terms of money and irritation.
JOIN COMSAC AND BE INFORMED!