QUESTION 1.

Q: What do I acquire if I / we purchase a Residential Unit?

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A: As a purchaser in the Residential development, you will be acquiring a sole ownership freestanding residential home and /or a sectional tile owned apartment, plus an undivided share of the common residential property as defined in the purchase agreement. The collective property purchased is referred to as a Residential Unit. The residential common property is that part of a residential development which does not form part of any erf and or section. Structures and areas in this category include driveways, gardens, parking bays, outer walls, foundations, roofs.

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QUESTION 2.

Q: How is my ownership registered at the Deeds Office?

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A: The project Conveyancing Attorney will register the ownership with the deeds registry at the Deeds Office. In the case of a sectional title ownership, the registration includes a list of all the sections in the scheme and specifies the name and details of each owner. A section extends to the mid-point of outer or dividing walls, the lower part of the ceiling, and upper part of the floor.  

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QUESTION 3.

Q: What do I acquire if I / we purchase a Retail Unit?

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A: As a purchaser in the Retail development, you will be acquiring a retail store /shop, plus an undivided share of the retail common property as defined in the purchase agreement. The collective property purchased is referred to as a Retail Unit. The residential common property is that part of a residential development which does not form part of any erf and or section. Structures and areas in this category include driveways, gardens, parking bays, outer walls, foundations, roofs.

 

QUESTION 4.

Q: What is a Body Corporate?

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A: A body corporate is an association, not a company or a partnership – with the ability to contract, sue and be sued. All Unit owners are automatically members of the Body Corporate. The function of the body corporate is to administer and manage the common property of all the Units. The body corporate has the authority to make decisions at one of two levels, i.e.

1. meeting of the Owners

2. meeting of the Trustees   

All Unit owners are automatically members of the body corporate. Owners, through a transparent voting process, elect trustees who will then be in charge of the daily management of the sectional title scheme. The Trustees are allowed to appoint a managing agent to assist them with this responsibility. The Trustees are required to manage the scheme in accordance with the provisions of the Sectional Titles Act, the Housing Development Schemes for Retired Persons Act and the scheme rules and any restriction or direction which the owners decides upon during a general meeting.

 

QUESTION 5.

Q: What do you own if your property is part of a Home Owners Association (HOA)?

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A: If you are part of a Homeowners Association, you own the building and the land it’s built on. The land the building is built on is known as an erf. You are personally responsible for maintaining and repairing your own property as well as arranging proper home insurance.

 

 

QUESTION 6.

Q: What do you own if your property is part of a Sectional Title Body Corporate?​

 

A: If you are part of a Sectional Title Body Corporate, there are two types of ownership, namely exclusive and joint ownership. You will own your apartment or retail unit exclusively but share ownership of common property areas such as passages, ablutions, security with other sectional title owners. In the case of the Klein-Begin Lifestyle Village, Sectional Title Owners will be required to form part of the Home Owners Association (HOA).
 

QUESTION 7.

Q: What are the Levies Payable by members of a Home Owners Association?​

 

A: The Homeowners Association is an association formed to manage and maintain common roads, communal areas and general security. The levy you pay to the Homeowners Association is used to cover the management and maintenance costs incurred for the Klein-Begin. The duties of a Homeowners Association will depend on the Constitution, but generally consist of the following:

•          Overseeing the maintenance of all buildings and common areas such as gardens within the development.

•          Ensuring that all residents comply with the rules of the estate.

•          Managing agreements with the local authorities or those supplying any type of service to the estate.

•          To ensure that any activities within the estate comply with local municipal laws.

QUESTION 8.

Q: What are the Levies Payable by members of a in Sectional Title Bodies Corporate?​

 

A: The levies collected in Sectional Title Bodies Corporate not only cover the maintenance of the buildings and common property areas, but also include certain defined building insurance cover. This explains why levies in a Sectional Title Body Corporate are often higher than those in a Homeowners Association. In a Sectional Title Body Corporate, the management of the common property falls on the Body Corporate, which is made of elected people who own units in the Scheme. The Body Corporate in turn elects trustees whose duties may include, but are in no way limited to the following:

• Setting up a budget for the administration and reserve levy funds from which all levies are paid. These funds are then used for the management, maintenance and administration of the common property.

• Arranging insurance for the buildings and common property.

• Dealing with the local authorities and if need be entering into agreements with the local authority or any other person for the supply of electricity, gas, water, fuel, sanitary and other services.

• Enforcing the Management and Conduct Rules amongst the residents of the Scheme.

Although the responsibilities of both Sectional Title Bodies Corporate and Homeowners Associations are rather similar, there is one important difference. In a Sectional Title Body Corporate, the Body Corporate is also responsible for arranging insurance cover and carrying out repairs to the outside of the building – homeowners are only responsible for the ‘interior shell’ of their particular units and their exclusive use areas. Bodies Corporate are also obliged to formulate, budget for, and act on a 10 Year Maintenance Plan. Whereas, in a Homeowners Association, individual owners are entirely responsible for the inside and outside of their property which includes the buildings and gardens on the erf on which they have.
 

QUESTION 9.

Q: What laws and legislation govern Home Owners Associations and Sectional Title Body Corporates?​

 

A: In a Homeowners Association, through title deeds, each individual owner is automatically a member of the Association which exists as a separate legal entity from its members. The common property is transferred to and registered in the name of the Homeowners Association. A Homeowners Association is normally a Section 21 non-profit, and is subject to the Companies Act, No. 71 of 2008. The owners elect a Board of Directors who are responsible for management of the Association.

A Sectional Title Body Corporate is subject to the Sectional Titles Act of 1986 and the Sectional Titles Scheme Management Act 8 of 2011. The owners in a Sectional Title Body Corporate make up the Body Corporate and elect Trustees to carry out the duties required and defined in the Act.

Both the Homeowners Association and the Sectional Title Body Corporate are subject to the Community Scheme Ombud Service Act 9 of 2011 which requires that every Scheme must be registered with the Ombud Service, charge the applicable levies to each of their members on a monthly basis and pay such levies collected to the Ombud Service every 3 months.