If you've been looking at property in South Africa, you've probably come across the term "sectional title." It's one of the most common forms of property ownership in the country - particularly for apartments, townhouses, and cluster homes - and it works quite differently from owning a freehold house.
Sectional Title in Simple Terms
When you buy a sectional title property, you own your specific unit (your "section") plus an undivided share of the common property. Your section is your apartment or townhouse - the four walls, the floor, the ceiling, everything inside. The common property is everything shared with other owners: the entrance, the gardens, the swimming pool, the parking areas, the building's external structure, and the roof.
The Body Corporate
All owners in a sectional title scheme collectively form the body corporate. The body corporate is responsible for:
- Maintaining and repairing the common property
- Insuring the building structure (not the contents - that's each owner's responsibility)
- Setting and collecting monthly levies
- Managing the scheme's finances
- Enforcing the scheme's rules
The body corporate is managed either by the owners themselves (at the AGM, by electing trustees) or by a professional managing agent.
Monthly Levies
As a sectional title owner, you pay a monthly levy to the body corporate. This levy covers:
- Building insurance
- Common area maintenance and cleaning
- Security (if the scheme has it)
- Management fees
- Contributions to the reserve fund (for future major maintenance like painting, roof repairs)
Levies vary widely - a basic apartment scheme might charge R1,500 to R2,500 per month; a full-service estate with security, gym, and concierge might charge R5,000 to R10,000+.
What to Check Before Buying Sectional Title
Request the body corporate financials. Are the finances healthy? Is the reserve fund adequately funded? A reserve fund that's nearly empty means a special levy (a once-off additional charge for major repairs) is likely.
Read recent AGM minutes. What issues are being discussed? Are there disputes? Are there known maintenance problems?
Check for outstanding special levies. Special levies can be significant - R10,000 to R50,000+ is not unusual for major repairs. Ask the seller and the managing agent.
Review the conduct rules. Every scheme has conduct rules - some allow pets, some don't. Some allow short-term rentals (Airbnb), some don't. Know what you're signing up for.
Sectional Title vs Freehold: The Quick Summary
| Factor | Sectional Title | Freehold |
|---|---|---|
| What you own | Your unit + share of common property | Land and building |
| Monthly costs | Bond + levy + rates | Bond + rates + maintenance |
| Maintenance responsibility | Your unit only | Entire property |
| Outdoor space | Usually limited/shared | Typically private garden |
| Security | Usually included in levy | Your responsibility |
| Price point | Generally lower | Generally higher |