SECTIONAL TITLE SCHEMES

Posted by WKH on 25 Feb 21

Categories:

Estate Living
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Common property and Exclusive Use Are:

All owners jointly own the land itself as well as the common property.

Common property comprises areas like staircases, lifts, corridors, roads, entrance area etc.

Exclusive use areas are for example carports, storerooms which are used solely by the individuals entitled to use them

The Body Corporate

The Body Corporate is responsible for the control, administration and management of the scheme. All the owners of the units in a scheme form part of the Body Corporate. At an annual general meeting of all the owners, trustees are elected to carry out the day to day running of the scheme. The duties of trustees are:

    ·Ensuring levies are collected on time

    ·Arranging regular annual general meetings

    ·Running the sectional scheme effectively

    ·Making sure owners and tenants comply with the scheme’s rules

    ·Making sure that the scheme buildings and assets are insured

    ·Raising special levies when unforeseen expenses occur

    ·Making sure the common property is well maintained

Levies

Every owner makes monthly monetary contribution to a fund for general expenses of the scheme

Paying your monthly levy is not an option, it is an obligation by law, and failing to pay the levy could result in legal action against the owner. The whole sectional title scheme could lose value if some of the owners do not pay their levies

There is no provision in the Sectional Title Act or prescribed rules that gives an owner the right to withhold duly raised levies to set-off a debt believed to be owed to him by the body Corporate.

When looking at purchasing a unit in a Sectional title scheme….

It is in your best interest to insist that the estate agent furnishes you with the following information:

    ·The rules governing the scheme

    ·The names of the trustees of the Body Corporate and managing agents

    ·The amount of levy payable in respect of the unit and whether any increase is anticipated

    ·The extent to which the Body Corporate has made provision for future maintenance of the scheme

    ·Financial statements of the Body Corporate

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