Property Law and Sectional Title

 

 

 

When purchasing a townhouse in South Africa, it's common for the property to fall under a sectional title scheme. In such arrangements, you own your specific unit and share ownership of common areas with other residents. However, some townhouses are sold as freehold properties, where you own both the unit and the land it occupies. It's essential to verify the property's title type—sectional or freehold—before proceeding with the purchase to understand your ownership rights and responsibilities.

Levies are calculated based on the estimated costs of running the sectional title scheme for the upcoming financial year. The trustees prepare budgets for both the administrative fund (day-to-day expenses) and the reserve fund (long-term maintenance). These budgets are presented to owners for approval at the Annual General Meeting (AGM). Owners may request adjustments before final approval is granted.
Once approved, contributions (levies) are divided among owners according to their Participation Quota (PQ). The PQ is determined by calculating the floor area of an owner’s section as a percentage of the total floor area of all sections in the scheme.
For example: If an owner’s section is 50 square metres, and the total floor area of all sections is 1000 square metres, the PQ is 5%. The owner will then pay 5% of the total approved budgeted expenses.
In most cases, levies are collected in monthly instalments over the financial year to make payments manageable for owners.

To help keep levy costs as low as possible, owners can take an active role in the management of the scheme.
* Get Involved as a Trustee Serving as a trustee allows you to participate in the annual budgeting process and make decisions about expenses. Trustees, not managing agents, have the final say on service providers for insurance, security, maintenance, and other contracts. Appointing more cost-effective providers can save significant amounts and reduce levies.
* Review the Budget and Financial Statements Before approving the budget at the Annual General Meeting (AGM), carefully study the proposed expenses and financial statements. Query any costs that seem unusually high or unnecessary. This encourages trustees to investigate alternatives and ensure costs are justified.
* Suggest Alternatives If costs seem excessive, approach the trustees with suggestions or assistance as a partner, not an accuser. Trustees may welcome advice, especially as many are not formally trained in financial management.

By actively participating and holding the trustees accountable for careful financial management, owners can help control expenses and keep levies reasonable.

Levies are contributions paid by all owners in a sectional title scheme to cover the costs of maintaining and managing the property. These are collected by the Body Corporate as required by the Sectional Titles Schemes Management Act.
Levies are allocated to two funds
The Administrative Fund – Covers day-to-day expenses, such as maintenance, cleaning, security, and utilities, based on the approved annual budget.
The Reserve Fund – Allocates funds for long-term repairs and maintenance as outlined in the 10-year Maintenance, Repair, and Replacement Plan.
Levies typically cover
Maintenance of common property (gardens, roads, swimming pools)
Cleaning and security services
Insurance premiums
Managing agent fees
Professional services (auditors, attorneys)
Municipal rates, taxes, and utilities
Banking fees and administrative costs
Major maintenance projects (like repainting, reroofing, and repaving)
In short, levies ensure the property remains well-maintained and financially sustainable, benefiting all owners in the scheme.

Rules for Pets in Sectional Title Schemes
Owning pets in sectional title schemes (e.g., complexes or flats) is regulated by the Sectional Title Schemes Management Act (STSMA). Unlike standalone homes, pet ownership in these schemes requires compliance with specific rules.

Key Rules for Pet Ownership
Trustees’ Written Consent 

  • Residents must obtain written permission from the trustees to keep pets.
  • Trustees cannot unreasonably withhold consent but must consider the request’s circumstances and the scheme’s best interests.
  • Conditions may be attached to the approval, such as
  • Proper control of the pet.
  • Cleaning up after the pet.
  • Ensuring the pet does not disturb other residents.

‘No Pets’ Policies
A strict ‘no pets’ rule is allowed if adopted through a special resolution, requiring at least 75% approval (both in value and number) of those present at the vote.
Without this resolution, such a rule cannot be enforced.


Service Dogs 
Service dogs (e.g., guide dogs, hearing dogs, or therapy dogs) are automatically permitted under Rule 1(2) of the STSMA.
Proof of disability must be provided to the body corporate.


Removing Pets That Break Rules

If a pet breaches body corporate rules (e.g., persistent barking, disturbance, or lack of permission), the body corporate can do the following 

  • Approach the Community Schemes Ombud Service (CSOS), private arbitration, or the courts to have the pet removed.
  • Withdraw consent if there is a valid reason.
  • Need Assistance With Pet Ownership Rules?

For expert advice on navigating pet ownership disputes in sectional title schemes, contact us today. We’ll help you understand your rights and responsibilities.

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About Property Law and Sectional Title in South Africa

Property ownership in South Africa offers flexibility, whether you’re exploring freehold ownership or sectional title properties. Each option comes with its unique advantages and challenges. Understanding the legal frameworks and management structures is essential for making informed decisions. Our legal firm specializes in helping you navigate these complexities with confidence.

Sectional Title Schemes

What Is Sectional Title Ownership?

Sectional titles are a popular form of property ownership in South Africa. They grant individuals ownership of a specific unit within a complex, along with shared ownership of communal areas such as gardens, parking spaces, and recreational facilities. This form of ownership is governed by the Sectional Titles Act 95 of 1986 and the Sectional Titles Schemes Management Act (STSMA) of 2011.

Key Features of Sectional Titles

  • Ownership Structure
    • Each unit owner holds a title deed for their specific unit.
    • Owners share responsibility for maintaining common property like swimming pools and gardens.
    • Exclusive use areas, such as parking bays or balconies, are allocated to individual owners.
  • Management of the Complex
    • A Body Corporate, made up of all unit owners, oversees the administration of the scheme.
    • Trustees manage daily operations, while major decisions are made during general meetings.
  • Rules and Conduct
    • Legal rules, including Management Rules and Conduct Rules, govern the scheme.
    • These rules regulate behavior, noise levels, pet ownership, and use of communal areas to maintain harmony.
  • Financial Responsibilities
    • Owners contribute to monthly levies for maintenance, insurance, and security.
    • Special levies may be raised for unforeseen repairs or improvements.
  • Dispute Resolution
    • Disagreements between owners, tenants, or the Body Corporate can be resolved through the Community Schemes Ombud Service (CSOS).

Advantages and Challenges of Sectional Title Properties

Benefits

  • Cost-Effective Maintenance Shared levies reduce the financial burden of property upkeep.
  • Enhanced Security Complexes often feature gated access, CCTV, and on-site guards.
  • Access to Amenities Many schemes include facilities such as pools, gyms, and gardens.
  • Community Living Shared spaces promote social interaction and collective responsibility.

Challenges

  • Rules and Restrictions Regulations on pets, renovations, and behavior can limit personal autonomy.
  • Special Levies Additional costs may arise for unexpected repairs or upgrades.
  • Limited Flexibility Changes to a unit often require Body Corporate approval.

Freehold vs. Sectional Title

Understanding the difference between these property types is key to making the right choice

  • Freehold Ownership Provides full ownership of the property and land, along with sole responsibility for maintenance and security.
  • Sectional Title Ownership Combines private ownership of a unit with shared responsibility for communal areas, governed by the Body Corporate.

Homeowners’ Associations (HOAs)

For freehold properties within gated estates, Homeowners’ Associations (HOAs) manage shared spaces like parks, clubhouses, and roads. Unlike sectional titles, HOAs operate under their own constitutions and may function as non-profit entities.

Key Functions of HOAs

  • Managing and maintaining communal areas.
  • Enforcing community rules for aesthetics, safety, and property value preservation.
  • Collecting levies for communal services.
  • Resolving disputes among members.

Legal Framework for Property Ownership

South African property law ensures that ownership rights are protected and disputes are fairly resolved. Key principles include

  • Defining Property Rights Ownership rights can be real (ownership) or personal (use).
  • Balancing Interests Legal protections apply to both individual and communal owners.
  • Constitutional Oversight Fair expropriation with compensation is safeguarded for public purposes.

Tips for Property Buyers

  • Understand Financial Obligations Review the Body Corporate’s financial health, including levies and reserve funds.
  • Inspect the Property Evaluate the condition of communal facilities and units.
  • Check the Rules Ensure the scheme’s conduct and management rules align with your lifestyle.
  • Seek Legal Advice Consult a property law expert to review documents and protect your investment.

 

Eviction Under the Prevention of Illegal Eviction Act (PIE)  

South African law protects tenants’ rights under the **Prevention of Illegal Eviction from Unlawful Occupation of Land Act (PIE)**, even in cases where they refuse to pay rent or vacate the property. This law balances the rights of landlords and tenants while strictly prohibiting unlawful evictions.  

Steps to Evict a Tenant for Non-Payment  

1. Cancel the Lease  

  • Follow the lease agreement’s notice period or provide one month’s notice as per common law.  

2. Apply to Court  

  • File an ex parte application (without notifying the tenant) at the appropriate court.  
  •   Support the application with a sworn affidavit detailing:  
  •       Unlawful occupation  
  •       Reasons for eviction  
  •       Why eviction is just and equitable  

3. Notify Parties  

  •   The sheriff serves notices to the tenant, local municipality, and other relevant parties.  
  •    All parties must receive 14 days’ notice before the hearing.  

4. Court Hearing  

  •    The tenant can argue why the eviction should not proceed.  
  •     The court considers all circumstances, including 
  •     Rights of elderly persons, children, the disabled, and female-headed households.  

5. Eviction Order  

  • If granted, the court sets dates for the tenant to vacate and for the eviction to be enforced.  

 Key Considerations  

  • The PIE process can be lengthy, often delaying the landlord’s ability to regain control of the property.  
  • During this time, landlords may suffer financial losses, as rental income stops while bond payments continue.  

 Need Help With Evictions?  
Evicting non-paying tenants requires strict compliance with the law. At DDK Inc., we guide landlords through the PIE process efficiently to protect their rights and interests.  

Contact us today for expert assistance with tenant evictions.

 

Why Choose Us for Property Law Services?

Whether you’re purchasing a sectional title unit, navigating a homeowners’ association, or resolving property disputes, our experienced attorneys are here to help. We provide

  • Expert guidance on property transactions.
  • Assistance with drafting and reviewing legal agreements.
  • Support in resolving disputes with Bodies Corporate or HOAs.
  • Comprehensive advice on property law compliance.

Contact Us for Expert Legal Assistance

Let us simplify the complexities of property law for you. Whether you're buying, selling, or managing property, our team is ready to assist. Schedule a consultation today and ensure your property transactions and ownership rights are in expert hands.