Checklist for buying sectional title property

In addition to carefully considering the content of the offer/sale document, prospective purchasers of sectional property should also carry out the following checks before committing to a purchase:

  • Look at the sectional plan to determine your section boundaries, the scheme boundaries and that any section you are buying has not been informally 'extended' or altered. An informal extension of a section is irregular and gives rise to inequities in levy liabilities ? in order to cure such a situation the section has to be formally/legally extended and this has cost implications.

  • Establish by looking at the sectional plan and the rules of the scheme who owns or has exclusive use rights to parking, garden, storage areas, etc. Make sure that you are obtaining rights to any area you expect to be able to use exclusively such as a parking bay or garden area and whether they will be recorded at the Deeds Registry or in terms of the scheme rules.

  • Check the participation quota of the sections. This usually determines your share of the body corporate expenses which you pay monthly in the form of a levy and the value of your vote.

  • Get a copy of the scheme rules ? read these and look particularly for any rules that change your liability for levies, restrict your rights to deal with your property or create exclusive use rights.

  • Check what, if any, title deed conditions were imposed by the developer or the local authority for the scheme ? these could restrict your ability to lease or transfer your property.

  • Check the current monthly levies and what expenses are included in the most recent operating budget.

  • Inspect the condition of the scheme's common property, to assess the likelihood of any significant expenses for repairs and maintenance in the near future.

  • Read the most recent set of financial statements ? look particularly to see if there are sufficient reserves for maintenance and unexpected expenses.

  • Find out whether the body corporate owes money to a levy financier (An entity which lends money to a body corporate to supplement its funds depleted by the non-payment of levies so as to give it the cash flow it needs to pay its regular expenses), the local authority or a supplier and if it is involved in litigation or has judgments against it.

  • Check the amount and type of insurance cover and the current insurance replacement value allocated to the section.

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