Property Law and Sectional Title

Freehold ownership means you have full ownership of both the land and the buildings on it. You are responsible for all maintenance, insurance, and rates.

Sectional title ownership means you own a specific "section" (like a flat or townhouse) within a larger complex, and you have a shared ownership stake in the "common property" (e.g., gardens, driveways, swimming pools).

A conveyancer is a specialized attorney who handles the legal transfer of property ownership. In South Africa, a conveyancer is legally required to draft and register the transfer of a property at the Deeds Office. Their role is to ensure the process is legally compliant and that the new owner's rights are properly recorded.

A title deed is the official, legal document that proves who owns a property. It's registered with the Deeds Office and contains all the property's details, including its description, the name of the owner, and any conditions or restrictions on the property.

The process typically takes 8 to 12 weeks from the date the sale agreement is signed. The timeline can vary depending on factors like how quickly the seller provides all the necessary documents and how long it takes to obtain municipal clearance certificates.

Besides the purchase price, a buyer must pay several costs, including:

  • Transfer duty: A tax paid to the South African Revenue Service (SARS) on the value of the property.
  • Conveyancing fees: The legal fees for the conveyancer's services.
  • Deeds Office registration fees: A fee to officially register the property in the new owner's name.
  • Bond registration fees: If you're getting a mortgage, this is a fee for registering the bond against the title deed.
Show more FAQs in Category

Property Law and Sectional Title Law

Unlock Your Property Potential - Expert Guidance in South African Property & Sectional Title Law

Navigating the intricacies of property ownership in South Africa can be a complex journey. Whether you're buying your first home, developing a new property, or managing a sectional title scheme, DVL Attorneys offers unparalleled expertise and dedicated support. We specialize in all facets of property law and sectional title law, ensuring your investments are protected and your rights are upheld. With us, you gain a trusted legal partner committed to your success.

Property Law & Sectional Title Law - Understanding the Landscape

In South Africa, Property Law broadly governs the ownership, use, and transfer of immovable assets like land and buildings. It defines and protects your proprietary rights. Sectional Title Law is a specialized area within Property Law that deals with the unique ownership structure of individual units within a larger complex (e.g., apartments, townhouses), along with the shared ownership and management of common areas.

Understanding the distinctions is key

Freehold Ownership
  • What it is: Traditional, full ownership of both the land and the buildings on it. You have complete control and sole responsibility for maintenance, security, and all associated costs.
  • Best for: Those seeking maximum autonomy, privacy, and direct control over their property. This includes free-standing houses, cluster homes, and smallholdings.
Sectional Title Ownership
  • What it is: You own a specific "section" (your unit, including its interior) and an undivided "participation quota" share in the "common property" (areas like hallways, gardens, pools, and recreational facilities). This form of ownership is governed by the Sectional Titles Act 95 of 1986 and the Sectional Titles Schemes Management Act (STSMA) of 2011.
  • Management: A Body Corporate, comprising all unit owners, is responsible for managing the scheme, enforcing Conduct Rules (governing behaviour, noise, pets, etc.), and maintaining common property. This is funded by monthly levies.
  • Exclusive Use Areas: Designated portions of common property, like a parking bay or balcony, for which an individual owner has exclusive usage rights.
  • Best for: First-time buyers, investors, or those seeking a managed, secure, and often more affordable lifestyle with shared responsibilities for upkeep.
Freehold in an Estate (HOA):
  • What it is: You own a freehold property, but it's part of a private, walled community managed by a Homeowners' Association (HOA). You automatically become a member of the HOA, which oversees communal affairs like parks, roads, and security.
  • Key Difference from Sectional Title: HOAs typically operate under their own constitutions (often as non-profit entities) and manage shared spaces, but you still own your land and building outright. Sectional titles involve shared ownership of the structure itself.
  • Best for: Those desiring freehold benefits within a secure, managed community with specific aesthetic or conduct rules.

Why Choose DVL Attorneys for Your Property Journey?

Whether you're embarking on your first property purchase, developing a new venture, or navigating a dispute, our experienced team provides strategic and practical legal support.

Expertise Across the Property Spectrum

Property Transactions Simplified
  • Contract Mastery: We expertly draft and review all property-related contracts, including sale agreements, lease agreements, and building contracts, ensuring they are legally sound and fiercely protect your interests.
  • Seamless Conveyancing: Our conveyancing specialists handle the entire legal process of transferring property ownership, meticulously registering title deeds, mortgage bonds, and other crucial documents.
  • Development Guidance: From township establishment to subdivision and consolidation of land, we ensure your property development projects comply with all zoning, environmental, and legal regulations.

Navigating Sectional Title Nuances:

  • Body Corporate & HOA Governance: We assist in setting up, managing, and ensuring compliance for Bodies Corporate and Homeowners' Associations. We provide guidance on roles and responsibilities, draft and review rules and constitutions, and help resolve complex governance-related disputes.
  • Dispute Resolution Masters: From disagreements between owners, trustees, and managing agents to issues concerning levies, maintenance, noise, or rule enforcement, we offer effective mediation and litigation services. We also assist with developer handover processes, ensuring statutory obligations are met.
  • Common Property Management: We advise on the legalities of managing and using common property, including the sale or lease of portions.

Safeguarding Your Interests Through Any Challenge:

  • Strategic Dispute Resolution: We prioritize resolving property-related disputes efficiently, whether through skilled negotiation and mediation to avoid court, or through robust litigation when necessary. Our goal is to achieve favourable outcomes while minimizing stress and cost.
  • General Property Law Advice: We offer clarity and assistance on:
    • Servitudes: Registration, modification, or termination of legal rights allowing use of another's land.
    • Landlord and Tenant Law: Advising both parties on their rights and obligations under lease agreements.
    • Evictions (PIE Act): We guide landlords through the strict legal process under the Prevention of Illegal Eviction from Unlawful Occupation of Land Act (PIE), ensuring compliance and protecting your rights while managing the complexities of unlawful occupation.

Understanding the Benefits and Potential Drawbacks of Sectional Title Ownership

Sectional title living offers clear advantages, but also requires careful consideration:

Key Benefits

  • Cost-Effective Maintenance: Shared levies reduce the financial burden of property upkeep.
  • Enhanced Security: Complexes often feature controlled access, CCTV, and on-site guards, providing peace of mind.
  • Access to Amenities: Many schemes offer shared facilities like pools, gyms, and gardens.
  • Predictable Running Costs: While you cover your unit's rates and internal upkeep, many external costs are covered by the levy, aiding budgeting.
  • Strong Rental & Resale Potential: High demand makes these properties attractive for investors and contributes to good resale value.
  • Community Living: Shared spaces can foster a sense of community.

Potential Drawbacks:

  • Levies & Special Levies: Monthly levies are fixed costs and can increase. Special levies for unexpected major repairs can be a significant financial burden.
  • Limited Control: You're bound by Body Corporate rules, which can dictate everything from pet ownership to renovations and external appearance.
  • Body Corporate Management: A poorly managed Body Corporate can lead to neglected maintenance, financial mismanagement, and disputes.
  • Dependence on Others: Common property maintenance relies on the Body Corporate and other owners; their unwillingness to contribute can impact the entire complex.
  • Financial Risks: A financially unstable Body Corporate can affect your unit's value, and owners may be liable for scheme debts in certain circumstances.

Crucial Steps Before Buying a Sectional Title Property -  Your Due Diligence Checklist

Before purchasing, thorough due diligence is paramount. Our team can provide comprehensive legal advice and conduct this on your behalf:

  • Review the Financials: Request Body Corporate financial statements to assess the scheme's health, looking for adequate reserve funds and timely levy payments. Be wary of high levels of outstanding levies or debt.
  • Understand the Rules: Obtain a copy of the scheme's rules and regulations, especially regarding pets, renovations, and common property use, to ensure they align with your lifestyle.
  • Inspect the Common Property: Look for signs of neglect in common areas like gardens, fencing, or pools, which can indicate poor management.
  • Speak to Current Residents: Gain valuable insights into the scheme's management and potential issues from those living there.

Sectional Title Insurance - What You Need to Know

Understanding insurance is crucial for financial protection:

  • Body Corporate Insurance: Mandated by law, this covers the building structure and fixtures of all sections and common property (e.g., fire, floods, burst pipes). The cost is part of your levies.
  • What's Not Covered: Body Corporate insurance does not cover your movable contents (furniture, décor, personal belongings). You need your own home contents insurance for these.
  • Your Responsibilities: Review the policy, understand the replacement values, know the claims process, and be aware that the claiming owner usually pays the insurance excess.

Choose DVL Attorneys -  Your Partner in Property Confidence

Whether you're transferring property, drafting agreements, navigating foreclosures, developing land, or dealing with complex sectional title matters, you need specialized legal assistance.

People choose DVL Attorneys when they need help with:

  • Transferring property ownership (conveyancing).
  • Drafting and reviewing property agreements, deeds of sale, leases, and building agreements.
  • Representing lenders or owners during foreclosure processes.
  • Legal guidance for group housing developments and opening sectional title registers.
  • Assistance with property development at all stages.
  • Registering and cancelling mortgage and notarial bonds.
  • Registering land consolidations and subdivisions.
  • Defending, challenging, or modifying servitudes.
  • Township registration and compliance.

We are dedicated to providing expert guidance on property transactions, assisting with drafting and reviewing legal agreements, and offering robust support in resolving disputes with Bodies Corporate or HOAs.

Ready to make informed decisions and protect your property investment? Contact DVL Attorneys today for expert guidance tailored to your unique property law needs.