Selling a sectional title unit

Sectional title units have grown in popularity over the last number of years because of the increased security and affordability that these units offer. This is particularly true for first-time buyers or young couples starting out.

Property Blog Articles | Advice | Contractual Matters | Market News

Many would think that the sale process would be rather straightforward, but as with any transaction, there are a number of key points that should be considered. The following should be taken into account by both the seller and prospective buyers when it comes to the transfer of a sectional title unit:

The role of the body corporate in the sale

The body corporate acts as a governing body of a sectional title scheme. This body is responsible for providing a number of documents that would not be required in the transfer of a freehold property. A levy clearance certificate that indicates that the seller is up to date with all levy payments is always required as part of a sectional title property transfer, and will be issued after payment of the required amount is made by the seller.

The purchaser’s bank might also request certain documents such as the sectional title scheme financial statements to assess its financial status and to ensure that the scheme is effectively managed. These will also be provided by the body corporate.

Additional information required

Before an offer to purchase is signed, the rules of the sectional title scheme should be discussed with the prospective buyer and a copy of these should be provided to him or her. This will ensure that there is no misunderstanding between the parties regarding what is expected of each person living in a unit and what is allowed. For example, not all sectional title schemes are pet friendly and this might be a deciding factor for a purchaser. Some schemes may also place a limit on the number of occupants allowed per unit.

The seller should provide the necessary documents and information to the agent before the property is advertised or have them on hand if they intend to sell the property privately. Further, if there are any special levies that are being charged, these should be made clear to the purchaser.

Buyers must be vigilant before signing an offer to purchase as investing in a property is a long-term commitment. If a purchaser neglects to request the documents mentioned, he or she might pay the price at a later stage.

Assistance from professionals

Any seller or purchaser should consult with an experienced estate agent or conveyancing attorney when a decision to buy or sell is made. This will ensure that there are no hidden costs or unpleasant surprises. Working with reputable property professionals means that each party is able to focus their attention on what is important to them and will help ensure a successful property transfer and a positive experience.

Follow Snymans on Facebook for more legal information, tips and news about property.

3788

Recommended for you

Property Blog Articles | Advice | Contractual Matters | Market News
Sectional Title Governance

Fining a member in a sectional title scheme

1375

Sectional title schemes rely heavily on its members to ensure the effective functioning and operation of the scheme. While often not the first port of call, should other avenues have already been explored, there are situations in which a member of the sectional title scheme may be fined for contravening management or conduct rules.

Read More
Property Transfers | Bond Registrations | Snymans Attorneys
Sectional Title Governance

Homeowners Associations (HOA) and Body Corporates – same, same but different

2612

For a number of reasons, popularity of sectional title schemes and homeowners associations have risen over the last couple of years, including better security options, affordability and unique living spaces. Understanding the differences between these two bodies is a must for any prospective home buyer in modern day communal living.

Read More
Property Blog Articles | Advice | Contractual Matters | Market News
Sectional Title Governance

Your sectional title unit and Airbnb

5025

Many people who own a second property are owners of a unit in a sectional title scheme for investment purposes. These units have largely been let to tenants for rental income, but more recently, Airbnb has changed the landscape of property rentals and how owners are able to derive an income from their investment properties.

Read More
Property Blog Articles | Advice | Contractual Matters | Market News
Sectional Title Governance

How to avoid special levy shock

6539

A special levy can come as a rather unpleasant shock to sectional title unit owners when the added expense was not expected. As such, property owners should make themselves aware of what to expect when such costs are incurred.

Read More
Property Blog Articles | Advice | Contractual Matters | Market News
Sectional Title Governance

Body Corporate Rules

7556

Body corporate management and conduct rules play an essential part in the effective and smooth operation of a sectional title scheme, so it’s crucial that owners and trustees are aware of the requirements in drawing up and amending these rules.

Read More

Need more Snymans content?

Sign up for our monthly newsletter.

Selling a sectional title unit

Sectional title units have grown in popularity over the last number of years because of the increased security and affordability that these units offer. This is particularly true for first-time buyers or young couples starting out.

Property Blog Articles | Advice | Contractual Matters | Market News

Many would think that the sale process would be rather straightforward, but as with any transaction, there are a number of key points that should be considered. The following should be taken into account by both the seller and prospective buyers when it comes to the transfer of a sectional title unit:

The role of the body corporate in the sale

The body corporate acts as a governing body of a sectional title scheme. This body is responsible for providing a number of documents that would not be required in the transfer of a freehold property. A levy clearance certificate that indicates that the seller is up to date with all levy payments is always required as part of a sectional title property transfer, and will be issued after payment of the required amount is made by the seller.

The purchaser’s bank might also request certain documents such as the sectional title scheme financial statements to assess its financial status and to ensure that the scheme is effectively managed. These will also be provided by the body corporate.

Additional information required

Before an offer to purchase is signed, the rules of the sectional title scheme should be discussed with the prospective buyer and a copy of these should be provided to him or her. This will ensure that there is no misunderstanding between the parties regarding what is expected of each person living in a unit and what is allowed. For example, not all sectional title schemes are pet friendly and this might be a deciding factor for a purchaser. Some schemes may also place a limit on the number of occupants allowed per unit.

The seller should provide the necessary documents and information to the agent before the property is advertised or have them on hand if they intend to sell the property privately. Further, if there are any special levies that are being charged, these should be made clear to the purchaser.

Buyers must be vigilant before signing an offer to purchase as investing in a property is a long-term commitment. If a purchaser neglects to request the documents mentioned, he or she might pay the price at a later stage.

Assistance from professionals

Any seller or purchaser should consult with an experienced estate agent or conveyancing attorney when a decision to buy or sell is made. This will ensure that there are no hidden costs or unpleasant surprises. Working with reputable property professionals means that each party is able to focus their attention on what is important to them and will help ensure a successful property transfer and a positive experience.

Follow Snymans on Facebook for more legal information, tips and news about property.

3788