SECTIONAL TITLES TERMINOLOGY
The property world can be a maze of terms, forms and contracts that leave one feeling unsettled and a little unsure of what they may have just agreed to… Our lawyers (MF Attorneys) compiled this comprehensive list of terms and concepts that apply to buyers, and sellers, within a housing complex or gated development where a large property is developed and sold-off in sections. These are known as sectional titles.
Here are some FAQs that the Rivigan team hopes will help you!
1. What is sectional title unit?
1. What is sectional title unit?
A title system in which sections of buildings are created for separate ownership. A sectional plan is registered and available at the Surveyor-General's Office for each sectional title development. All the parts of the land and the buildings that are not labeled as sections (or parts of sections) on the sectional plan are either common property or exclusive-use areas. The entire development (collection of units) is referred to as a sectional title scheme.
2. As a sectional title buyer, what will I own?
You will own one or more units. In conveyancing a unit is something with four walls and a roof. As an owner you will own a section, which consists of a unit, plus common property, plus a possible exclusive-use area. The boundaries of each unit are the centre lines of the walls, floors and ceilings that surround it. Always check the registered sectional plan to see exactly what parts of the land and buildings fall within your section.
3. What is the sectional title plan?
The sectional title plan is; an approved survey document showing the boundaries of all sections in the scheme, any registered exclusive-use areas and the details of the participation quotas.
2. As a sectional title buyer, what will I own?
You will own one or more units. In conveyancing a unit is something with four walls and a roof. As an owner you will own a section, which consists of a unit, plus common property, plus a possible exclusive-use area. The boundaries of each unit are the centre lines of the walls, floors and ceilings that surround it. Always check the registered sectional plan to see exactly what parts of the land and buildings fall within your section.
3. What is the sectional title plan?
The sectional title plan is; an approved survey document showing the boundaries of all sections in the scheme, any registered exclusive-use areas and the details of the participation quotas.
4. What is common property?
The common property in a scheme is those parts of the land and buildings that are not contained within any section according to the registered sectional plan. All the people who own sections jointly own the common property. For example, all the land, the foundations, roofs, passages, lifts, garden areas, swimming pool and any other facilities.
5. What is an exclusive-use area?
An exclusive use area is a defined part of the property set aside for exclusive use by a particular owner of a unit. You may buy and become entitled to exclusive-use rights that allow you the sole rights to use a part of the property, such as a parking bay, carport or garden area.
6. What is a participation quota?
A participation quota is a percentage allocated to each section that determines the undivided share in the common property. The sectional plan includes a Participation Quota Schedule that shows the allocations or percentages to each section. The participation quota allocated to a section is usually used to calculate an owner's share of the scheme's common expenses and the value of their respective vote.
7. Body corporate
The body corporate is a body that is established once the first transfer of any unit in the sectional title scheme is registered. It is the function of the body corporate to administer and collect funds, and ensure the smooth running of the sectional title scheme. The body corporate is also responsible for adopting and enforcing what are called Management and Conduct Rules.
8. Managing Agent
Managing agents are outside companies that fulfill the role of a body corporate, in terms of the management of the scheme, on behalf of the body corporate. Managing agents are appointed for an initial period of one-year. At the end of the initial period, or any subsequent one-year period, the contract with the managing agent is automatically renewed for another one-year period unless the body corporate has notified the managing agent to the contrary.
9. Management Rules and Conduct Rules
Annexures 8 and 9 to the Regulations of the Sectional Titles Act 95 of 1986. Management Rules dictate how a scheme should be managed by the body corporate whereas the conduct rules dictate what behavour is allowed within the scheme by the owners of units as well as the body corporate. These rules may be adopted as is from the regulations, alternatively they can be amended when the developer registers the sectional title scheme or by the body corporate by unanimous resolution.
