The South African Sectional Titles Act 95 of 1986 (STA) is the primary legislation governing the creation, registration, and management of sectional title schemes. It outlines the process for dividing buildings into individual sections and common property, and establishes the legal framework for individual ownership of sections with shared ownership of the common areas. The act also provides for the establishment of body corporates to manage the common property and the implementation of management rules.

The Sectional Titles Act was a crucial development for property ownership in South Africa, as it introduced a flexible way for individuals to own apartments or units in multi-unit developments while sharing responsibilities for communal areas. It paved the way for more affordable urban housing and created clear, enforceable rights and responsibilities between unit owners.

Key Provisions of the Sectional Title Schemes

Key provisions of the STA include:

• Division into Sections and Common Property – Allows for the division of buildings into individual sections, which are owned by individual owners, and common property, which is jointly owned by all sectional title owners;
• Registration of Sectional Title Schemes – Outlines the procedures for registering sectional title schemes with the Deeds Office, including the submission of sectional plans and the establishment of a sectional title register;
• Body Corporate – Mandates the establishment of a body corporate for each sectional title scheme, responsible for managing the common property and implementing management rules;
• Management Rules – Provides for the establishment and amendment of management rules, which govern the day-to-day running of the sectional title scheme, including the election of trustees, voting procedures, and the maintenance of common property;
• Ownership and Rights – Defines the rights and responsibilities of sectional title owners, including their right to use their section, their obligation to pay levies, and their right to participate in the management of the scheme;
• Sectional Plans – Specifies the requirements for land surveying and the preparation of sectional plans, which show the division of the property into sections and common property;
• Exclusive Use Areas – Allows for the allocation of exclusive use areas within the common property to specific sectional title owners, such as parking bays or storerooms;
• Dispute Resolution – Establishes a mechanism for resolving disputes between sectional title owners and the body corporate, such as through the Community Schemes Ombud Service (CSOS).

Through these mechanisms, the sectional title schemes legal framework fosters both autonomy and collaboration between owners. It ensures that while each owner has their own property rights, they are also obligated to participate fairly in the communal management and upkeep of the building or complex.

Body Corporate and the Sectional Titles Act

Section 37 of the STA outlines the responsibilities of the body corporate in a sectional title scheme, particularly regarding financial management and maintenance of common property. It mandates the establishment of an administrative fund for ongoing expenses and a reserve fund for larger or unforeseen repairs. It also covers the process for raising special levies to cover unexpected costs.

The body corporate acts as the collective “governing body” of the scheme. Every owner automatically becomes a member of the body corporate upon registration of a unit. Its duties go beyond maintenance — it is also tasked with enforcing management rules, ensuring compliance with the sectional title management act, and protecting the financial sustainability of the scheme.

Levies in Sectional Title

Sectional Title Act levies are mandatory financial contributions from sectional title unit owners to the body corporate. These contributions fund the maintenance, management, and administration of the common property within the scheme. Levies ensure the body corporate has sufficient funds to cover various expenses like insurance, repairs, and upkeep of shared amenities. In some cases, the body corporate may raise special levies to cover unexpected or large-scale expenses.

Section 32 of the STA defines participation quotas and their use in determining levy contributions by owners in the complex. Participation quotas are typically calculated based on the floor area of an owner’s section relative to the entire scheme. Understanding levies in sectional title schemes is crucial for budgeting and financial planning as an owner, as these costs are separate from bond repayments or personal maintenance costs.

Management Rules in Sectional Title Schemes

Management rules are essential for governing the scheme, dictating everything from meetings and financial management to maintenance and dispute resolution. Section 10(3) of the Act establishes the requirement that the management or conduct rules must be “reasonable and apply equally to all owners of units.” Any provision that is unreasonable will not constitute a valid rule.

Clear, fair, and properly enforced management rules are critical to avoid disputes and ensure the smooth running of sectional title developments. These rules provide practical guidance on day-to-day matters like trustee elections, meeting protocols, and financial reporting standards. Owners have the right to propose amendments, but any changes must be consistent with the broader framework set by the STA.

Exclusive Use Areas in Sectional Title Schemes

Section 27 of the STA outlines the creation and registration of exclusive use rights in sectional title schemes. These rights grant a unit owner exclusive access to a specific part of the common property, such as a garden or parking bay. The developer or body corporate can create these rights by registering a notarial deed or through a unanimous resolution of owners.

Exclusive use rights are valuable assets and can significantly affect a unit’s desirability and value. Buyers and owners should ensure that any exclusive use areas are properly registered and that their rights are reflected in the sectional title register or properly documented within the scheme’s rules. Disputes about exclusive use areas often arise when documentation is unclear or rights are assumed without formal registration.

Consult an Experienced Property Lawyer for Sectional Title Transactions

With over 35 years’ experience in conveyancing, litigation and compliance, our property lawyers are here to assist you with expert legal advice and guidance.

Working with an experienced property lawyer ensures that your rights under the Sectional Titles Act are fully protected. Whether you need assistance with transfers, disputes, levy queries, or exclusive use rights, expert advice is essential for avoiding costly mistakes and safeguarding your property interests.