Sectional Title And Common Property Laws. What You Need To Know.
A property that is divided into sections is called a sectional title, each section is owned privately. Previously we touched on common property within a sectional title, and what the common property entails. In this section, more detail regarding the common property will be discussed and also what this property is in the legal sense.
Owning an undivided share is called a common property. In effect, this means that no owner has particular ownership of any part of the property. The proportion of the common property owned by each owner in monetary value is proportionate to the quota of their respective sections owned. If an individual owner owns 50% of the property value in sectional titles, in monetary value he/she owns 50% of the common property.
The Sectional Title Deed
The laws regarding the use of the common property are outlined in the deed to the sectional title. The deed also explicitly discusses the quota system as well as simultaneously explaining the disposal of the property in association with the undivided property as a single unit. In the case where insurance is taken out for a sectional title property, insurance also covers the undivided share of the common property ‘belonging’ to the sectional title owner. This is not necessarily explained in the title deed, but rather applies in every event.
Common Property Resolution
The Body Corporate can be instructed by the owners of the sectional titles, through a unanimous vote, to either sell or lease a portion of the common property. This action is done by a property resolution that is drafted to include any necessary information referring to the property and is the only time that a land’s deed can be changed from that of common property to otherwise. The land re-registration must be done by the Body Corporate and involve a Surveyor-General to agree to the repurposing.
It is important that Body Corporates hire the services of attorneys to assist in cases regarding sectional titles and litigated procedures that involve property because there are more intricate and complex laws regarding the common property of which some are not understood by the entire Body Corporate or owners of sectional titles.
JA Attorneys have vast experience in dealing with sectional title disputes. Contact us today.