What Every Sectional Title Owner Should Know
Sectional title schemes – which include apartments, townhouses, and cluster homes – are governed by specific legislation that creates both rights and responsibilities for owners. Understanding these can help you avoid disputes and make informed decisions.
What is Sectional Title?
In a sectional title scheme, you own your individual unit (section) exclusively, while sharing ownership of common property with other owners. Common property includes things like gardens, driveways, recreational facilities, and the exterior of buildings.
The Body Corporate:
Every sectional title scheme has a body corporate, which is a legal entity responsible for managing and maintaining the common property. All sectional title owners are automatically members of the body corporate.
The body corporate is managed by trustees elected by the owners. Trustees make day-to-day decisions, enforce rules, collect levies, and arrange maintenance and insurance for common property.
Sectional Title Rules:
Schemes operate under management rules and conduct rules. Management rules deal with administration and financial matters, while conduct rules govern how owners and occupiers must behave (such as noise restrictions, pet policies, and architectural guidelines).
Owners and tenants must comply with these rules, and the body corporate can take legal action to enforce compliance.
Levies and Special Levies:
Owners pay monthly levies to cover the running costs of the scheme, including maintenance, insurance, security, and utilities for common property. Special levies may be raised for major repairs or improvements that exceed the reserve fund.
Failure to pay levies can result in legal action, and the body corporate has the right to attach and sell your property to recover outstanding amounts.
Selling Your Sectional Title Unit:
When selling, you’ll need a levy clearance certificate from the body corporate confirming all levies are paid. The body corporate must also provide certain certificates to the buyer, and there may be transfer costs payable to the body corporate.
Disputes and Resolutions:
Disputes in sectional title schemes are common, whether between owners, between owners and the body corporate, or regarding rule enforcement. Many disputes can be resolved through the Community Schemes Ombud Service (CSOS), which offers a quicker and cheaper alternative to court.
Understanding your rights and responsibilities as a sectional title owner helps you protect your investment and maintain harmony within your scheme.