Sectional Title versus Full Title: Key differences to consider

When it comes to buying property, it is important to understand the different property classes. Every registered property has a Title Deed which sets out the type of property and any restrictions that may apply.

The two main types of property in South Africa is Sectional Title and Full Title (also referred to as Freehold).

Where the property market was dominated by mostly full title property, the balance is slowly shifting with more and more Sectional Title property being developed. This is driven by the lack of land in the urban areas, but also by a need for security and more affordable housing, especially for first time buyers.

Jason Paans, Property Consultant for Coastal Property Sales and Letting says that aside from the security benefits, sectional title property also offers the convenience of a lock-up-and-go lifestyle with minimum fuss, especially when it comes to maintenance. You often also do not have a yard to worry about either, especially in high density urban areas.

Full Title (or freehold) means that you have full ownership rights of the property, both the land and building/s and other improvements thereon such as a swimming pool for example. This type of property includes free standing houses and cluster houses, even if they are located in an estate as well as smallholdings.

Sectional Title means that you only own a share of a particular complex or development along with an undivided share of the common property. The properties are generally referred to as units and include for example apartments or flats, townhouses and semi-detached houses. Shared facilities include parking areas, a clubhouse, swimming pool and playgrounds or golf estate and other amenities as applicable. Different developments tend to offer different facilities, says Paans.

Sectional title property is governed by a specific Act, the Sectional Titles Act which makes provision for various aspects of managing the complex including the maintenance and upkeep of the grounds. This includes the Body Corporate (BC) which is a collection of all the property owners who form a board to make decisions about various aspects of the complex or estate.

A managing agent, such as Coastal Properties, is usually appointed by the BC to manage various aspects such as 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 BC rules.

Most sectional title developments also require the property owner to pay a monthly levy that includes rates and taxes and a share of the maintenance costs and any other expenses that the Body Corporate may agree on and implement.

You can therefore see that the key difference between full title and sectional title is that the latter, while it offers many benefits, is governed by certain rules in regard to conduct and use of your property and the shared facilities.

Where a full title property owner is responsible for the upkeep, maintenance and security of his/her property alone, it is shared in the case of a sectional title property. You are also restricted in terms of renovations and need permission in most cases and are especially restricted in regard to the exterior finishes and aspects such as visible items. Pot plants are for example forbidden in some developments.

If you are looking at buying or renting in a sectional title complex or development, it is advisable that you check with the respective estate agent or property owner on what rules and regulations may apply. Pets for example are not permitted in many complexes and this will be a deciding factor for pet lovers.