Legislation
Sectional title schemes are governed by The Sectional Titles Act, 1986 provides for the division of buildings into sections and common property and for the acquisition of separate ownership in sections coupled with joint ownership in common property. It also provides for the transfer of such property between owners.
In addition The Sectional Titles Schemes Management Act, 2011 and its Regulations, provides for the establishment of bodies corporate to manage and regulate sections and common property in sectional title schemes.
Sectional Title Scheme: 170 on Grosvenor, Bryanston, Johannesburg
What is a sectional title scheme?
A sectional title Scheme is a form of property ownership where a number of people can simultaneously own a piece of land, on which multi-level apartment blocks (flats), townhouses, duets and other developments with shared facilities and areas are built.
It allows individual ownership of part of a property (a section) and shared ownership of all other areas (common property).
A sectional title Scheme is made up of three elements:
- Sections - the part of a sectional title scheme which an owner owns completely and is the space between the four walls, including windows, doors, ceilings and the floor. Sometimes an enclosed balcony or garage can be part of the section.
- Exclusive Use Areas - In addition to a unit, an owner may hold rights to the exclusive use of a portion of the scheme’s common property (e.g. parking bays, gardens, balconies, garages). This may be shown on the registered sectional plan or a plan that forms part of the scheme’s rules.
- Common Property – shared areas that do not form part of the section, e.g. the land, corridors, walls, foyers, gates, gardens, swimming pool, balcony, area between the roof ceiling, the outer skin of the building, roof foundation, stairways, lifts etc.
The Common Property is owned by all owners in scheme in undivided shares & is always controlled by the Body Corporate.
Unit is a section together with its undivided share in common property apportioned with the “quota’’ of that section (e.g. unit = section + undivided share in the common property).
How should a sectional title property be described?
The sectional plan number is the unique registration number given to the scheme. For example, if the scheme number is SS148/2012, this means that it was the 148th sectional title scheme registered in the deeds office during 2012. The Scheme will also have unique name, for example - Grey Meadows, meaning that no other Scheme in South Africa can have this name, although other versions of the name may exist (e.g. Grey Meadows II).
The scheme itself has an erf number (or portion of an erf number in the event of subdivision) associated with the entire property, in a particular township. For example, Ptn 2 of Erf 42 Bellville would represent the 2nd portion of the subdivided 42nd stand/erf in the township of Bellville. This erf number represents the land on which the Complex is built, which is part of the common property owned by the Body Corporate.
The sectional title deed number For example, ST8287/2013 would mean that it is the 8,287th sectional title property registered in the deeds office during 2013. You will notice that the scheme registration year may be different to the section’s registration year, as the sections can only be registered once built and an occupancy certificate provided for each unit.
The property will also be given a unique identifier number (a Unit or Section Number) for that particular sectional title scheme. For example, Unit 35 in the Scheme SS148/2012. The unit number typically correlates with the door number, but this is not always the case.
Using the examples above, this particular (fictional) property might be displayed as follows in a Lightstone report:
Sect 35 of plan 148/2012 known as "GREY MEADOWS"
Situated at Ptn 2 of Erf 42
Town: "BELLVILLE"
Mun: "CITY OF CAPE TOWN"
Province: "WESTERN CAPE"
Role players in a Sectional Title Scheme
The following are important role players with a Sectional Title Scheme:
- Body corporate – the collective name given to all the owners of Units in a Scheme, who control and run the Scheme;
- Owners – who each own a Unit (section + shared common areas);
- Trustees – members who are elected by the body corporate to act on behalf of the owners;
- Chairperson – a single member who is elected to represent the body corporate to chair meetings with trustees and/or members;
- Managing Agent – for bigger complexes, the trustees may appoint a managing agent to manage the entire Complex (e.g. levy collection, legal compliance, insurance, maintenance, finances, contractor management and reporting).
Overview of the Body Corporate
All the owners of sections on a Scheme automatically constitute the Body Corporate. The law views a body corporate as a Legal Entity, with all owners in the scheme being viewed as members of the entity. Levies are the monies that you as an owner are liable for and which funds applicable to a scheme (which you as an owner would be liable for).
The body corporate can:
- sue a member for outstanding levies;
- sue or be sued for any contract entered – security services, painting or damage of/to common property, etc.
- claim against the Developer in respect of a scheme if so determined by special resolution (75% of member votes).
A Body Corporate is governed by two sets of rules, namely:
- Management Rules – roles and responsibilities of members, meetings, voting, elections, financial management and reporting; and
- Conduct Rules - which determine how the owner, their family, staff, visitors & tenants must or must not act.
These rules are important as they give confidence to new buyers coming into the Complex and existing owners that there are repercussions for breaches of the rules, and these can be legally enforced by the Body Corporate.
Changes to a Unit in a Sectional Title Scheme
Any owners wanting to make changes to their unit or exclusive use area, such as structural or aesthetic changes to the building (e.g. external painting or installation of an air conditioning unit), will need to get approval from the Body Corporate.
If the change represents a material change, in particular for an extension to a section, a consolidation of two or more sections or a subdivision of a section, this can also be done, however the owner(s) will need consent from a number of potential parties:
- approval from the Body Corporate;
- approval from the municipality;
- updated sectional plan of the proposed changes, drafted by a surveyor and approved by the Surveyor General;
- application to the deeds office for the proposed extension / consolidation / subdivision; and
- consent of the bondholder (if the property is bonded).
How decisions are made in a Sectional Title Scheme
Major decisions regarding the scheme are made by the Body Corporate, usually at the Annual General Meeting (AGM), or at a Special General Meeting (SGM). At these meetings, matters which affect the scheme, are discussed, budgets are approved, rules can be amended and trustees are appointed. Each member of a Body Corporate is entitled to vote at these meetings.
Depending on the seriousness of the decision, and the resulting affect it may have on owners in the Scheme, key decisions are made by way of resolutions – with more serious decisions required more votes from owners – for the resolution to be passed.
The various types of resolutions include:
1. Ordinary Resolution: Requires at least 50% (plus one) of votes of members, present or represented by proxy at a meeting;
2. Special Resolution: Requires at least 75% of votes of members, present or represented by proxy at a meeting;
3. Unanimous Resolution: Requires 100% of votes of all members at a meeting, which at least 80% attendance of voters are present or represented by proxy AND all members vote in favour of the resolution.
Get legal advice on your sectional title property
Aucamp Incorporated is a qualified law firm with over 35 years’ experience in sectional title development and management. Whether you’re selling a sectional title property, need advice prior to purchasing one, or have a query or dispute over rules and management – Aucamp has an expert for you. For the best advice and service for your sectional title property, get in touch with the best attorneys.