Are you looking for a sectional title property? Find out more about sectional title property ownership.
A rising trend in South Africa and specifically the North Coast of KwaZulu-Natal is sectional title homeownership and Estate living. Sought out for its numerous safety and lifestyle benefits, properties in secure estates and complexes have become the standard of real estate in this area.
To ensure that you are entirely prepared for Sectional Title Ownership, we suggest working with an agency or agent that knows the ins and outs of Sectional Title Schemes to avoid any complications.
It is also crucial to do your homework before buying into a Sectional Title Scheme, here are five things to consider before making an offer.
Understand Your Responsibilities
Communal living, while hugely popular and beneficial, does have some differences to more traditional types of real estate.
The most significant difference is that when you purchase a Sectional Title unit, you also own an undivided share in the common property and become a member of the Body Corporate. A Body Corporate must manage and oversee all the common areas and amenities, and regulate conduct amongst owners and tenants in terms of its Conduct Rules.
As a member of a Body Corporate, you will have specific responsibilities, make sure to understand what will be required of you as an owner in the Scheme.
Check The Financials
If you have found a Sectional Title Property you would like to purchase, the first step you need to take is to ask your agent for the financial statements of its Body Corporate.
Carefully examine these statements and decide whether or not the Body Corporate is financially sound; taking note of any unusual/significant expenses that could cause concern. If you are unfamiliar with reading balance sheets – ask a professional to assist.
Keep in mind that if you are applying for a bond, your bank will need these statements as well.
Gauge Your Levies
When purchasing a sectional title property, it is of the utmost importance that you are aware of and budget for the monthly levies you will have to pay.
Levies vary from Scheme to Scheme; this is why we suggest that you compare levies from similar Sectional Title Developments to get a better understanding.
If you find that the levies in your complex or estate are much higher than other similar developments – this could pose a problem later on if you decide to sell.
In terms of the Sectional Title Management Act the Body
Study The Rules
Every Body Corporate has its own set of management and conduct rules. These rules deal with the various factors involved in governing communal living in the Scheme.
These rules will cover everything from pet ownership, noise levels, visitors parking, renting out your unit and more.
By studying these rules, you will get a better understanding of the character of the Scheme, the types of owners and the values they have – this will allow you to decide whether you would be comfortable residing there or not.
Are you looking to buy a home in a complex or estate? Get in touch with us today and find your perfect property.