A sectional title home can offer security, convenient locations, shared facilities and lower day-to-day maintenance. It can also conceal financial and practical risks that are not visible during a viewing.
When you buy an apartment, townhouse or duplex in a sectional title scheme, you also become a member of its body corporate. You accept a share of responsibility for the common property and agree to live within the scheme’s financial and behavioural rules.
A well-run scheme can protect every unit’s condition and long-term value. A poorly managed one can expose owners to rising levies, special contributions, neglected maintenance and disputes.
The safest approach is therefore to investigate both the property and the scheme before signing an offer to purchase.
What does sectional title ownership actually mean?
A sectional title unit consists of a defined section, together with an undivided share in the common property. Common property may include the land, roofs, passages, lifts, gardens, driveways, security infrastructure and shared facilities.
Every owner automatically becomes a member of the body corporate. It administers the scheme, maintains common property, raises contributions, arranges insurance and enforces the rules. Trustees manage these responsibilities on behalf of owners, often with the assistance of a managing agent.
Your unit may be in excellent condition, but its value can still be affected by the scheme’s finances, governance, maintenance standards and reputation.
1. Confirm exactly what is included in the sale
Do not assume that every area shown to you forms part of the registered section.
A balcony, garden, storeroom, garage or parking bay may be:
• Part of the registered section
• A separate registered section
• An exclusive-use area
• Ordinary common property allocated informally
Ask for the sectional plan and written confirmation of the legal status of every parking bay, garage, garden and storeroom included in the transaction.
If the marketing material and registered documents do not align, the discrepancy should be resolved before the offer becomes unconditional.
2. Understand the full monthly levy
The advertised levy is only meaningful if you know what it includes.
Request a current levy statement and a breakdown of all recurring charges. These may include:
• The administrative levy
• A reserve-fund contribution
• The Community Schemes Ombud Service levy
• Security expenses
• Building insurance
• Water and refuse charges
• Generator or backup power costs
• Shared electricity charges
Some developments also fall within a larger estate or homeowners’ association, creating a second levy.
Ask whether utilities are individually metered or allocated through another formula.
When comparing property listings across South Africa, compare the total likely monthly ownership cost rather than focusing only on the purchase price and bond repayment.
3. Check how your contribution is calculated
Levies are commonly influenced by the unit’s participation quota. This is generally linked to the unit’s floor area relative to the total floor area of all sections in the scheme.
The participation quota can also influence an owner’s voting value and share of certain liabilities.
Valid rules or resolutions may allocate some expenses differently, especially where a cost benefits only certain owners. Exclusive-use areas may also carry separate contributions.
Ask for the unit’s participation quota and confirm whether any alternative allocation rules apply. This is particularly important in mixed residential and commercial schemes or developments where unit sizes vary substantially.
4. Read the latest audited financial statements
The financial statements show whether the scheme collects enough income, pays its creditors, maintains appropriate administrative and reserve funds, and manages arrears effectively.
Review the latest audited financial statements, preferably together with the previous year’s figures.
Look for:
• Cash available to the scheme
• Municipal or supplier debt
• Outstanding loans
• Unusual or unexplained expenses
• Levy arrears
• Audit qualifications or concerns
• Significant changes from the previous year
An adverse item does not automatically make the scheme a poor purchase.
The important questions are whether the issue has been disclosed, whether the trustees understand it, and whether there is a credible plan to resolve it.
5. Examine the reserve fund and 10-year maintenance plan
South African sectional title schemes must maintain a reserve fund and prepare a written maintenance, repair and replacement plan covering major common-property items expected to require work during the next 10 years.
The plan should address items such as:
• Roofing
• Waterproofing
• Exterior painting
• Plumbing systems
• Electrical infrastructure
• Lifts
• Roads and paving
• Security infrastructure
It should record the condition of these items, their anticipated repair or replacement date, and the estimated cost.
Do not judge the reserve balance in isolation.
Compare the money available with the timing and cost of the planned work, as well as the annual contributions budgeted to close any funding gap.
A large shortfall may eventually lead to increased levies or special contributions.
6. Identify existing or likely special levies
A special contribution may be raised when an expense is not adequately covered by the approved budget or reserve fund.
It could be used to fund:
• Waterproofing
• Structural repairs
• Security upgrades
• Municipal debt
• Major insurance excesses
• Another urgent capital project
Ask whether a special contribution has already been approved, proposed or discussed.
Meeting minutes and maintenance reports may reveal a project that has not yet reached the formal voting stage.
Responsibility between the seller and buyer can depend on the date of the resolution, the transfer date, the payment schedule and the wording of the sale agreement.
The offer to purchase should clearly state who will be responsible for an existing special levy, with the conveyancer confirming the legal position.
7. Measure the scheme’s levy arrears
Levy arrears weaken the body corporate’s cash flow and can shift financial pressure onto owners who pay on time.
Ask for:
• The total value of outstanding levies
• The number of units in arrears
• The age of the debt
• The collection process being followed
• Whether legal action has been necessary
A small amount under active collection may be manageable.
Persistent arrears are more concerning, particularly if one investor, developer or commercial owner controls several units and owes a substantial amount.
A scheme can appear solvent on paper while struggling to meet its monthly obligations in practice.
8. Read the AGM and trustee meeting minutes
Financial statements show what happened to the money. Meeting minutes show what owners and trustees are worried about.
Review the latest annual general meeting minutes, any subsequent special general meeting minutes and recent trustee minutes where available.
Look for recurring references to:
• Water leaks or waterproofing problems
• Structural concerns
• Security failures
• Insurance claims
• Delayed maintenance
• Special levies
• Municipal disputes
• Governance conflict
• Legal proceedings
Debate among owners is not necessarily negative. It can indicate active participation and proper oversight.
The greater concern is a pattern of unresolved problems, weak record-keeping or decisions repeatedly postponed without a workable plan.
9. Check the management and conduct rules before you buy
The scheme’s rules affect how you use the property, who may occupy it and what alterations you may make.
Read the current approved rules rather than relying on a verbal summary from the seller or agent.
Pay particular attention to rules dealing with:
• Pets
• Long-term letting
• Short-term or holiday letting
• Noise
• Parking
• Renovations
• Contractor working hours
• Air conditioners
• Solar equipment and inverters
• External appearance
• Occupancy restrictions
This is particularly important for investors.
A unit may appear suitable for short-term letting, but the scheme may restrict that use. A buyer planning renovations, solar panels or backup power may also need prior written approval.
Obtain any necessary approval before committing to the purchase.
10. Confirm the insurance and maintenance boundaries
The body corporate normally insures the buildings and common property.
Owners still require insurance for their furniture, personal possessions and other contents. Additional cover may also be needed where improvements inside a unit exceed the replacement value recorded by the body corporate.
Request the current insurance schedule, policy expiry date, replacement valuation and relevant claims history.
Check for:
• Significant insurance excesses
• Recurring water-damage claims
• Exclusions from cover
• Inadequate replacement values
• Unresolved insurance disputes
Also establish who is responsible for maintaining windows, doors, balconies, pipes, geysers, waterproofing and exclusive-use areas.
These responsibilities can depend on the sectional plan, legislation, scheme rules and the source of the damage.
Where a defect is already visible, obtain written confirmation of responsibility before transfer.
11. Inspect the common property as carefully as the unit
The most expensive risks may sit outside the front door.
Inspect the following areas where access is permitted:
• Roofs
• Exterior paintwork
• Boundary walls
• Paving and driveways
• Drainage systems
• Stairwells
• Lifts
• Basements
• Gardens
• Refuse areas
• Security systems
• Utility infrastructure
In coastal markets, salt exposure can accelerate corrosion.
In high-rainfall areas, waterproofing and stormwater management deserve particular attention.
In older urban complexes, lifts, plumbing stacks and electrical capacity can create significant future capital costs.
A professional inspection of the unit remains valuable, but it should not replace an investigation of the common property and maintenance records.
12. Investigate disputes, compliance and future development rights
Ask whether the body corporate is involved in litigation, Community Schemes Ombud Service proceedings or material disputes with owners, contractors, the managing agent, developer or municipality.
Establish the potential financial and operational consequences of any dispute.
Confirm that the scheme is registered with the Community Schemes Ombud Service and that its governance documents are in order.
In newer developments, ask whether the developer holds a registered right to extend the scheme.
Future phases can change:
• The density of the development
• Existing views
• Construction activity and noise
• Traffic and parking
• The number of residents using shared facilities
• The number of owners sharing common expenses
A buyer should understand what further development may still take place.
How should the offer to purchase protect the buyer?
Due diligence is most effective before the offer is signed.
Buyers sometimes feel pressured to submit an unconditional offer immediately, but doing so transfers more risk to the purchaser.
If important records have not yet been supplied, consider making the offer subject to a defined review period or a satisfactory assessment of specified documents.
The clause should identify:
• The documents to be supplied
• The deadline for supplying them
• Who will assess them
• What happens if a material concern emerges
Relevant conditions may address:
• Bond approval
• Sectional plans
• Exclusive-use rights
• Financial statements
• Levies and special contributions
• Pet approval
• The buyer’s intended use
• Responsibility for known defects
The wording should be checked by the estate agent and conveyancer to ensure that it deals with the actual risk clearly.
How should buyers interpret red flags?
No sectional title scheme is perfect.
An older complex may need substantial maintenance but still have disciplined trustees, realistic planning and adequate reserves.
A new development may look immaculate while having an untested budget, limited operating history and little evidence of how effectively the body corporate will function.
The objective is to distinguish between a disclosed, funded and competently managed issue and an uncontrolled liability.
Be especially cautious where several warning signs appear together:
• Unusually low levies
• Visible neglect
• Inadequate reserves
• Major maintenance work approaching
• High levy arrears
• Repeated audit concerns
• Missing records
• Serious unresolved disputes
• Pressure to sign before documents are provided
Transparent trustees and managing agents should be able to explain a problem and show what is being done to resolve it.
Evasive, incomplete or contradictory answers increase the risk.
Frequently asked questions about buying sectional title property
Is a low levy always an advantage?
No. It may reflect efficient management, but it can also mean maintenance or reserve contributions are being deferred.
Compare the levy with the services provided, the age of the scheme, the reserve fund and the 10-year maintenance plan.
How much money should a scheme have in reserve?
There is no single ideal amount.
Adequate funding depends on the development’s age, condition, size and planned capital work. Assess the reserve balance against the approved maintenance plan rather than treating it as a standalone figure.
Can levies increase after I buy?
Yes.
Contributions may change as operating costs, insurance premiums, municipal charges and maintenance requirements increase.
Special contributions may also be raised where permitted by legislation and the scheme’s rules.
Who pays a special levy when a unit is sold?
It depends on the timing of the resolution, the transfer date, the instalment schedule and the wording of the sale agreement.
Responsibility should be stated explicitly and confirmed by the conveyancer.
Can a body corporate stop me from keeping a pet or renting out the unit?
The answer depends on the valid conduct rules and the specific circumstances.
Pets commonly require written trustee consent and may be subject to reasonable conditions.
Letting, particularly short-term letting, may also be regulated. Obtain any necessary approval before committing to the purchase.
Which documents should I request?
Buyers should generally request:
• The sectional plan
• The current management and conduct rules
• A current levy statement
• The latest audited financial statements
• The approved budgets
• Details of the reserve fund
• The 10-year maintenance plan
• Recent AGM and trustee meeting minutes
• Details of special levies
• The building insurance schedule
• Proof of exclusive-use rights
Conclusion
A sectional title property should be evaluated as two connected assets: the private unit and the scheme supporting it.
Buyers who inspect only the interior may miss the financial, legal and maintenance issues that have the greatest effect on long-term affordability and resale value.
The strongest purchasing decision is based on verified documents, realistic monthly costs and a clear understanding of future obligations.
A few days of careful investigation before signing can prevent years of avoidable expense and frustration.
