Sectional Title Scheme

Being An Informed Home Buyer Is Important When Buying into A Sectional Title Scheme

If you are a first-time home buyer it is a good idea to garner as much knowledge prior to signing on the dotted line. Chances are that there will be two kinds of property ownership that you, as a first-time home buyer will likely to have to choose between – these are freehold title and sectional title.

If you are keen on buying into a sectional title scheme, and are a first time home buyer, this is what you can expect

Sectional Title

  • A sectional title scheme is usually a block of flats, a complex of townhouses or cluster homes, which is made up of a number of residential units within a larger common property.
  • Once you own a unit or flat, together with your undivided share of the common property – this is what forms the “section” of the sectional title.
  • You are also permitted to make extensive use of the common property which could be anything from the gardens, pool or entertainment area as well as parking.
  • A monthly levy is payable which goes towards shared costs; furthermore this includes the upkeep and the maintenance of the common property.
  • Insurance, security and other expenses are also paid from the levy.
  • You are billed directly for municipal rates as well as electricity, although your water is usually a cost that is shared although with some schemes, water is individually billed.
  • The levy is usually based on the actual expenses of running the building or the complex.
  • The Sectional Title Act sets out how sectional title schemes need to be managed.
  • You automatically become a member of the body corporate which consists of all the owners in the scheme.
  • A group of trustees is elected from among the owners at an AGM which represents the body corporate.
  • The trustees are usually responsible for managing the scheme although many schemes commonly outsource this task.
  • Over and above the monthly levy, the trustees have the authority to implement a special levy to cover unexpected expenses.


Before buying into a scheme you need to be satisfied that it is well run and that all the rules and regulations suit you. It is important to see a recent audit of the finances as well as the current budget and all the minutes of the last AGM as this will give you a clear indication of the state of the finances of the scheme and whether you can expect levies to increase or whether a hefty special levy is eminent.

If you are looking at buying into a sectional title scheme, you need to be informed. Contact us at Wizardrand to ensure you become an informed buyer.