The difference between Sectional title and Freehold
Category Property Advice
To understand the differences between SECTIONAL TITLE and traditional FREEHOLD property ownership, it is important to define them.
FREEHOLD or full title describes the transfer of full ownership rights when you own a property, which includes the building and the land it is built on. These kinds of properties include free-standing houses, cluster houses, residential property used for business purposes, and smallholdings. Homes within gated communities may be held under either freehold or sectional title forms of property ownership.
Freehold is a more traditional form of residential property ownership in which the owner is responsible for all the bills and maintenance of the property, including taxes, insurance, upkeep, security, electricity and water bills.”
SECTIONAL TITLE on the other hand, describes separate ownership of units or sections within a complex or development. When you buy into a sectional title complex, you purchase a section or sections and an undivided share of the common property. These are collectively known as units. Sectional title dwellings include detached houses, townhouses, flats or apartments.
When you buy a sectional title property you are buying exclusive ownership of the unit or section that you have purchased, while at the same time becoming a joint owner of the common property of the development.
The administration and maintenance of the common property is the responsibility of a Body Corporate, which consists of all the owners of the townhouse complex or apartment block, who then elect trustees to handle its day-to-day management, . Depending on the type of property purchased, you may also be entitled to the exclusive use of a garden, parking space, storage facility and staff quarters.
A managing agent is often appointed to take care of the duties of a Body Corporate, which includes collecting monthly levies, paying the scheme’s insurance premiums, arranging meetings, ensuring compliance with the Sectional Titles Act, and ensuring that the owners and tenants comply with the Body Corporate rules.
Author: Upton Properties
