Purchasing a sectional title home

phoneJunky

phoneJunky

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Hello everyone.

I read a sectional title page here a while back but I can not get the search function of the new forum just quite right. I am currently looking into buying a sectional title and I just wanted to clear a few things up.

1. If i purchase a free standing unit is the garden part of my section? I read on the internet that a garden can be part of the common ground? How do I know when it can be common ground or not?

2. Do the developers have the right to decide later on that they want more units on the land or an extra story? This feels like a silly question but I would still want to know.

3. I know that I will have a responsibility to the rest of the complex - are there any other pro's and cons you can think of?

Thank you all in this regard.
 
Try using Google Advance search and use "http://mybroadband.co.za/vb" in as the site (you may have to remove the http://).
 
I only got this thread from google, Joburg sectional title owners and it is not what I was looking for. I must have been mistaken about the thread then, so the questions still stands.
 
The title says Sectional Title and the content is about free standing?
I have free standing and sectional title and in the free standing it describes the area that is exclusively yours, and in the case of my sectional title the small garden is seprately listed as an "exclusive use area".

The developers cannot change the area and allocations, as these are registered at the deeds office.

The sectional title or enclosed free standing does offer better security and I find it good if you have civil people in the complex - I prefer the free standing for better separation from neighbours - find out how many of the units are rented out, and if it's a large percentage be a little cautious as tenants don't always abide by the standards of the complex.

With sectional title you most often need to pay 6 ~ 12 months levy up front.
 
Thank you Frankie,

You have raised a few points that I didn't consider and that I will need to find out. The content is about Sectional title but I think I am a bit confused.
 
Hi guys, my wife and I are currently looking to purchase or first home. Due to security reasons we were leaning more towards purchasing a sectional title home. What are some of the stuff to look at when purchasing sectional title vs a normal free standing house, what are the questions we should be asking and things to watch out for?
 
Ask to see the conduct rules before you buy. Having had the unfortunate experience of dealing with dishonest and overzealous trustees whose main aim was to hand out ridiculous fines without warnings, not following body corporate approved rules, making up new rules as they see fit without following proper procedure and then having a total disregard for CSOS judgments against them, made me realise that I will NEVER live in a sectional title. NEVER! Hope you have a different experience.
 
* Like Goobie said get the rules. This will also clear up withings like whether you can have pets etc.
* Make sure you have good security in place for your personal unit. This means bars on the windows, slamlock gates and alarm system. We had an incident where a gardener was checking out units during his work day and then breaking and and robbing people at gunpoint at night. A security guard and some electric fencing isn't helping anyone.
* Ask for financial records for the complex from the trustees. Complexes should NOT be in the red. They also require a 25% yearly operating revenue to be held in savings by law - this is to offset the possibility of special levies, painting and maintence. Check trustees aren't being paid as this usually leads to theft. For your own sanity find out if a special levy is currently in place as this may transfer to you.
* Get a current levy statement from the owner. You will be liable for rates & taxes to the council but the complex will charge you for multiple things. As an example my complex charges levies at roughly R800 which seems great for any buyer and that is all I would have to disclose at sale but sewerage, electricity, water, common property water, common property elec, COJ electricity tarriff, special levy called something else, CSOS, Elec demand and supply charge, water demand charge etc. Taking personal water and elec usage off the actual cost is about R1400 a month which is almost double what the official "levy" is.
* Perhaps talk to a few people in the estate and find out their gripes with the place and see if they are superficial or not. We have a guy that is always selling drugs and another that from time to time were building I bonfire in the middle of the driveway on weekends.
* Make sure the place has plenty of guest parking otherwise you will constantly be fighting with residents to get them or their guests to move their car out of your designated parking spot.
* Get hold of the minutes of the past few trustee meetings and AGMs and get an idea of the finances and issues that are raised. If you can't get these or they have not had meetings then this should be a red flag.
* Our complex has a diesel generator for loadshedding.
* If you do go ahead with the purchase make sure you get the relevant insurances. Complex will cover anything exterior to the building but anything inside is your problem. Smoke damage, water damage, contents insurance etc is for your cost.

That's all I can think of off the top of my head.
 
WesleyDB said:
Hi guys, my wife and I are currently looking to purchase or first home. Due to security reasons we were leaning more towards purchasing a sectional title home. What are some of the stuff to look at when purchasing sectional title vs a normal free standing house, what are the questions we should be asking and things to watch out for?
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Security is false, lived in one for 7 years. Plenty of robberies in the complex. Even security complexes
 
Lupus said:
Security is false, lived in one for 7 years. Plenty of robberies in the complex. Even security complexes
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Yip people move in with a car and move out with a truck having never bought anything.............
Also if you are willing to live by someone else's rules then it's OK I suppose.
 
Lupus said:
Security is false, lived in one for 7 years. Plenty of robberies in the complex. Even security complexes
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lol some one asked me why I live in a complex the other day an day and I answered the false sense of security puts me at ease.
it does have its benefits but so does free standing.


some good points from @^^vampire^^
best to find out from people that live there what it is like, some complexes have draconian trustees that do what they want because the rest of the owners cant be bothered ,as soon as an owner complains about the body corporate being like this and that I know i am in the presence of an idiot who allows this type of behaviour.
 
WesleyDB said:
Hi guys, my wife and I are currently looking to purchase or first home. Due to security reasons we were leaning more towards purchasing a sectional title home. What are some of the stuff to look at when purchasing sectional title vs a normal free standing house, what are the questions we should be asking and things to watch out for?
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1. Ask for a copy of the Sectional Title Plan. It's a legal document and depicts the sections and the common property, and the mysterious "median line", signed off by the surveyor general. Study it, and understand what you need to maintain (as part of the section) vs the common property (Body Corporate).
2. Finances -- get the latest audited financial statements and budget. Would not hurt to get the last 4 years, plus AGM minutes of each year, and minutes of any SGMs that were held. Study them and understand how the BC is run. The Admin budget is important, as well as the state of the MR&R fund and budget. Were there any special levies in the past 4-5 years and what for?
3. As someone stated, check the Conduct Rules (although these can change), as well as the Management Rules. Look for rules which are unconstitutional, and pay particular attention to the management rules, some may have been changed from the prescribed management rules by the developer.
4. Pets, Parking and People are the biggest Pains in sectional title.
a) As someone mentioned, check the Conduct rules regarding pets, if there are none, are you happy listening to someone's dog yapping all day and night?
b) Parking -- there should be ample for residents and guests. Clearly marked and allocated for both.
c) On people, visit the property at different times of the day and night, weekday and weekend. Are you happy living in a complex that transforms into a township on weekends? What is the tenant to resident owner ratio? Any B&Bs - are people renting units out on a per night basis? A quick google will reveal this.
5. Security: What is security like? Are there guards? PSIRA registered guards? Is there strict visitor access control?
6. Basic governance:
a) If there is anything that suggests that the trustees are not operating inline with the law (such as unregistered guards) means that you will have problems, avoid.
b) Likewise with the general state of maintenance on the common property, look for peeling gutters, rusted traffic signs, numerous lights out, neglected gardens and lawn, broken doors and windows etc. Things ought to be reasonably ship-shape if trustees have everything under control. If it looks like Mogadishu, then probably not.
c) Go to the CSOS website and search for past CSOS adjudications. Ask the managing agent if there are any pending CSOS cases and if so, what they are about?
d) Don't be fooled by the "Audited Financial Statements". Ask to see the debtors list on outstanding levies -- how many units as a percentage are 90 days or more? Do the trustees have a handle on BC members not paying? Check the creditors list, any biggies? Ask questions. Ask different people. Managing agents can and will lie, just like estate agents. If in doubt, verify the facts.

Hope that this helps.
 
As Vampire and Ron have said - get the financials for the complex. As far as I am concerned, nothing shows a complex being well run and maintained other than a healthy financial situation.

Also find out who the managing agents are, and then google them. If the complex doesn't have managing agents - run.
 
Full title takes preference for me

Zero rules, good neighborhood is always a plus.

Full title is also alot cheaper than sectional title.

Related to the sectional title rule, you need to get an managing agent to “run” the estate. Trustees need to deal with guys defaulting. Special levies. Misadministration. Pay a security firm. Pay a cleaning and sorting firm. Pay a cleaning company. Pay a garden service.

And all costs are shared -> into levies
 
zerocool2009 said:
Full title takes preference for me

Zero rules, good neighborhood is always a plus.

Full title is also alot cheaper than sectional title.

Related to the sectional title rule, you need to get an managing agent to “run” the estate. Trustees need to deal with guys defaulting. Special levies. Misadministration. Pay a security firm. Pay a cleaning and sorting firm. Pay a cleaning company. Pay a garden service.

And all costs are shared -> into levies
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Some good points to think about, maybe I need to reconsider. Thanks for the help bud.
 
WesleyDB said:
Some good points to think about, maybe I need to reconsider. Thanks for the help bud.
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It's six vs 1/2 a dozen though what you pay for levies in a sectional title can translate into what you would pay for those same services in your full title home, difference is you responsible and can choose to pay for services or save and do it yourself or not at all, in a complex you have to pay ,although the maladministration thing can happen. There are many complexes in bad financial shape but others are in good, you have to be involved and be proactive to make sure it isn't and doesn't get messed up, don't trust or expect others to do it.
 
If you take the money factor away.... the next big thing is rules! If you dont like rules, then full title.

If you are fine with rules, then consider a neighbor who is an ******* doing what he wants, who are buddies with trustees, who gets away with alot.

Personally, if you like full title, you can get a cluster home.

Hope my inputs help
 
If you go sectional title, ask this:

1. A copy of the financials
2. A copy of the existing levies and costs for the unit.
3. Chat to the neighbors maybe (getting a feel if they own or rent)
 
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