If you buy into a sectional title scheme you could end up with more headaches that you think, as you need to first fully understand the reach of the rules attached, which are laid out by the body corporate.

Say for instance, you buy an apartment on the first floor with a massive patio space — thinking it would be a great place for that jacuzzi you have always wanted. Only after the purchase of the jacuzzi do you get a letter from the body corporate saying that no 'water features’ are allowed on patios or balconies… leaving you with the headache of trying to rectify the situation or argue against the ruling.

What's more, is even small adjustments you want to make like putting in an air-conditioning system could be rejected by the body corporate because the air-conditioning box may deface the outside of the property — leaving you no choice but to sweat it through those hot summer months.

Therefore, you need to make sure you understand what you are buying into, and just what rules the rules are.

Buying into sectional title

When buying into a sectional title scheme, you essentially buy a 'section' of the development — namely your unit, and share the rest, which is the 'common property' of all the owners. What you 'own' is the inside of the property, that is, the space contained by the inner walls, ceilings and floors of the unit.

The common property includes areas that do not form part of any individual section, such as driveways, swimming pools, lifts, parking bays, outer walls, and roofs. Your garden, patio and even garage may form part of the common property, but over which you may be granted 'exclusive use'. What this means is that you do not own these areas, you merely have exclusive use of them, but they are controlled by the body corporate. Owners, who have exclusive use of a garage, storeroom or parking bay which they do not require, can sell the exclusive area to another owner in the scheme.

You are entitled to paint or decorate or undertake alterations as desired, providing such alterations do not infringe on municipal by-laws or affect the common property.

As the outside of the building is owned by the body corporate, even minor changes have to be approved by the trustees. This includes all external changes — everything from aerials and satellite dishes, to painting the exterior of the building. Any major structural changes on the other hand, must be done in accordance with government and municipal approval before proceeding, and with the approval of the body corporate.

Body corporate?

The body corporate is the collective name given to all the owners of units in a scheme, and according to Section 36(1) of the Sectional Titles Act 95 of 1986, is the association of all owners.

Membership to the body corporate is involuntary, and arises upon registration of a unit into the owner's name and lapses upon the registration into the name of another. If you rent out your property, you as the owner are the member of the body corporate, not the tenant.

This body controls and runs the sectional title development. Decisions are made collectively at the annual general meeting or at a special general meeting. All unit owners are allowed to vote at these meetings provided their levy payments are up to date. The body corporate however appoints trustees to take care of the day-to-day affairs of the development, while the managing agent sends out monthly statements, collects levies, and so forth.

Your voting power depends on your percentage ownership of the development, which depends on the size of your unit.

The costs incurred in running a scheme have to be paid by the body corporate. These costs include, rates and taxes, water and electricity used on the common property, sewage, insurance premiums for the common property, repairs and maintenance, wages and salaries of staff, and security costs. These costs are paid by individual owners in the form of a monthly levy, calculated in accordance with the participation quota for their unit. Some costs incurred in the upkeep of exclusive use areas can be recovered from the user of that area.

Know the rules…

The Sectional Title Act prescribes management and conduct rules that apply to every sectional title scheme and has laid down the framework for running such a scheme.

On inception, a sectional title scheme sets up management and conduct rules. Management rules control the running and management of the scheme, while conduct rules are guidelines for the conduct of owners and their tenants.

The rules can be changed by the body corporate, as long as these changes are not against the spirit of the Sectional Titles Act. Proposed changes must be put to the members of the body corporate at a general meeting, at which members will be able to discuss the proposed changes before being asked to vote for or against them.

Before buying into a sectional title scheme make sure that you read the rules laid out buy the body corporate and ask all the necessary questions about alterations and adjustments that you would like to make to the property, before you sign, in order to avoid disappointment.

This information is from www.maxprop.co.za