Legislation etc relevant to Residents & Tenants
Purpose of the Document:
The Sectional Titles Act of 1986 as amended defines the framework for the design and establishment of a sectional title scheme. It however does not define the operational aspects and limitations of the legal entity itself.
The Sectional Title Schemes Management Act 2011 as amended addresses this gap.
The Sectional Titles Act was also deficient inasmuch as it did not establish a basis for home-owners and body corporates to amicably resolve issues.
The Community Schemes Ombud Service Act 2011 addresses this gap and is frequently used.
Furthermore, many conflicts between the provisions of the Sectional Titles Act and the Sectional Titles Schemes Management Act arose once the latter Act came into being. Bodies Corporate were expected to work with these conflicts and after more than a decade these seem to have been resolved.
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Purpose of the Document:
Full Title (or freehold title) means that you have full ownership rights of the property. It might be bonded to a financial institution, but it is still yours, including the land, buildings, other improvements etc. This type of property includes free standing houses and cluster houses, even if they are located in an estate governed by a home-owners’ association.
Sectional Title means that you only own a share of a particular complex plus an undivided share of the common property. These could be apartments, townhouses, cluster units or flats. Property owners are required to pay a monthly levy covering rates and taxes applicable to the entire scheme as well as a share of the current and future maintenance expenditure, as agreed to by the home-owners in general meeting. Furthermore, home-owners are restricted as regards renovations and improvements that may be made to the exterior finishes of a unit.
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