Sectional Title or HOA?

Are you house hunting? Please make sure you are aware of the rules and regulations governing a Sectional Title complex and a Home Owners Association, so that you can make an informed decision. Here are a few points on each option that can assist you.

Sectional Title:

• You own a section as indicated on the Sectional Title Plans – this section is exclusively owned by you, but you also own an undivided share of the common property, along with all other owners.
• Common property is maintained and controlled by the Body Corporate.
• Common property is all areas of the building / scheme that are not included in a section, this includes roofs.
• Exclusive Use Areas is a part of the common property that designated owners can enjoy the use of. It remains common property, but the owner must attend to the maintenance etc.
• Levies are usually higher in a Sectional Title complex, due to more maintenance required, due to a greater area of common property.
• The Body Corporate is administered by a Board of Trustees that you as owners elect at the Annual General Meeting.
• You are governed by the Sectional Title Schemes Management Act and the conduct rules of the Body Corporate.

Home Owners Association:

• There are 2 types of Home Owners Associations – either registered as a NPC or voluntary.
• The common property area is a lot less than Sectional Title, due to the roofs of each unit being the responsibility of each individual owner.
• Levies are less.
• If registered, the Home Owners Association is administered by a Board of Directors.
• You are governed by the Association’s Memorandum of Incorporation and Constitution, as well as the Company’s Act.

The biggest challenge faced are owners that do not educate themselves prior to purchasing a property in a complex. Do your homework and make the best decision based on the needs of you and your family.