Sectional title owners: be warned

Many people remain unaware of the legalities and responsibilities involved when buying and owning a sectional title unit. Not only are they the owners of the unit and responsible towards the maintenance and upkeep of the individual unit, but they are also jointly responsible for the control and administration of the common parts of the development.  They are joint owners of the common property, for example, the driveways, access gates, swimming pools and even washing machines in a common washing area.

By being a registered owner of the unit, the owner is an automatic member of the body corporate. It is therefore not a voluntary association, but rather a compulsory one.  The owner cannot revoke his membership and the association is only terminated when the unit is transferred to a successor- in- title.

What is important to know is that the members become personally liable for the unsatisfied debts of the body corporate. It is of utmost importance that unit owners keep an eye on the financial situation of the body corporate and not think that it is the trustees’ sole responsibility to do so.  There has been an amendment to this effect by the Sectional Titles Amendment Act of 2005, which provides some relief to owners that are up to date on their levy payments. Yet it still is so important, that some banks reserve the right to withdraw from registering a bond over a unit where the body corporate as a whole is in arrears with regard to rates and taxes owned to the local council. 

Take note, when buying a unit to make sure that the managing agent gives you the correct financial status of the body corporate, so that you can make an informed and wise decision before committing yourself to a lot headaches.

Carla Almeida-Grobler
Senior Associate
Adams & Adams