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BUSINESS NEWS - When purchasing a sectional title property in South Africa, it is important to understand exactly what you own and which areas you are entitled to use.
The terms unit, section, exclusive use area and common property are often used interchangeably, but they have different legal meanings under the Sectional Titles Act 95 of 1986 and the Sectional Titles Schemes Management Act 8 of 2011.
Section:
A section is the part of a sectional title scheme that is specifically shown as a section on the registered sectional plan. This will generally be the private part of the property, such as an apartment.
The boundaries of a section are determined by the sectional plan and may be defined by floors, walls and ceilings.
For example, if you purchase Apartment number 9, the apartment itself may constitute your section.
The sectional plan is therefore an important document because it determines precisely what forms part of your section.
Unit:
A unit is slightly broader than a section. Legally, a unit consists of the section together with the owner’s undivided share in the common property. Therefore, when you purchase a sectional title property, you are not simply buying the physical apartment, you also acquire an undivided share in the common property.
These two components together make up your unit.
Common Property:
Common property consists of the land forming part of the sectional title scheme and those parts of the buildings that do not form part of individual sections.
Typical examples include entrance areas, staircases, passages, lifts, communal gardens, swimming pools, driveways and other facilities intended for shared use.
Common property is jointly owned by the owners of the sections in undivided shares according to their respective participation quotas.
The body corporate is responsible for managing and maintaining the common property, subject to the applicable legislation and scheme rules.
Exclusive Use Area:
An exclusive use area (EUA) is a part of the common property that is designated for the exclusive use of the owner or owners of sections. Common examples include a designated parking bay, private garden, courtyard, patio, balcony or storeroom.
Importantly, an exclusive use area does not become part of the section simply because one owner has exclusive use of it. It remains common property, but a specific owner has the legal right to use it exclusively.
It can be summarised as follows: the section is the private portion shown on the sectional plan; the unit is the section plus the owner’s share in common property; common property is shared property belonging to all owners collectively; and an exclusive use area is common property reserved for the exclusive use of a particular owner.
Before purchasing a sectional title property, purchasrers should examine the registered sectional plan, title deed and relevant scheme documentation to establish exactly what is included in the property and what rights attach to any exclusive use areas.
For more information contact Lorandi at 044 601 9900 or [email protected].
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