Property Law and Sectional Title

When purchasing a townhouse in South Africa, it's common for the property to fall under a sectional title scheme. In such arrangements, you own your specific unit and share ownership of common areas with other residents. However, some townhouses are sold as freehold properties, where you own both the unit and the land it occupies. It's essential to verify the property's title type—sectional or freehold—before proceeding with the purchase to understand your ownership rights and responsibilities.

Levies are calculated based on the estimated costs of running the sectional title scheme for the upcoming financial year. The trustees prepare budgets for both the administrative fund (day-to-day expenses) and the reserve fund (long-term maintenance). These budgets are presented to owners for approval at the Annual General Meeting (AGM). Owners may request adjustments before final approval is granted.
Once approved, contributions (levies) are divided among owners according to their Participation Quota (PQ). The PQ is determined by calculating the floor area of an owner’s section as a percentage of the total floor area of all sections in the scheme.
For example: If an owner’s section is 50 square metres, and the total floor area of all sections is 1000 square metres, the PQ is 5%. The owner will then pay 5% of the total approved budgeted expenses.
In most cases, levies are collected in monthly instalments over the financial year to make payments manageable for owners.

To help keep levy costs as low as possible, owners can take an active role in the management of the scheme.
* Get Involved as a Trustee Serving as a trustee allows you to participate in the annual budgeting process and make decisions about expenses. Trustees, not managing agents, have the final say on service providers for insurance, security, maintenance, and other contracts. Appointing more cost-effective providers can save significant amounts and reduce levies.
* Review the Budget and Financial Statements Before approving the budget at the Annual General Meeting (AGM), carefully study the proposed expenses and financial statements. Query any costs that seem unusually high or unnecessary. This encourages trustees to investigate alternatives and ensure costs are justified.
* Suggest Alternatives If costs seem excessive, approach the trustees with suggestions or assistance as a partner, not an accuser. Trustees may welcome advice, especially as many are not formally trained in financial management.

By actively participating and holding the trustees accountable for careful financial management, owners can help control expenses and keep levies reasonable.

Levies are contributions paid by all owners in a sectional title scheme to cover the costs of maintaining and managing the property. These are collected by the Body Corporate as required by the Sectional Titles Schemes Management Act.
Levies are allocated to two funds
The Administrative Fund – Covers day-to-day expenses, such as maintenance, cleaning, security, and utilities, based on the approved annual budget.
The Reserve Fund – Allocates funds for long-term repairs and maintenance as outlined in the 10-year Maintenance, Repair, and Replacement Plan.
Levies typically cover
Maintenance of common property (gardens, roads, swimming pools)
Cleaning and security services
Insurance premiums
Managing agent fees
Professional services (auditors, attorneys)
Municipal rates, taxes, and utilities
Banking fees and administrative costs
Major maintenance projects (like repainting, reroofing, and repaving)
In short, levies ensure the property remains well-maintained and financially sustainable, benefiting all owners in the scheme.

Rules for Pets in Sectional Title Schemes
Owning pets in sectional title schemes (e.g., complexes or flats) is regulated by the Sectional Title Schemes Management Act (STSMA). Unlike standalone homes, pet ownership in these schemes requires compliance with specific rules.

Key Rules for Pet Ownership
Trustees’ Written Consent 

• Residents must obtain written permission from the trustees to keep pets.
• Trustees cannot unreasonably withhold consent but must consider the request’s circumstances and the scheme’s best interests.
• Conditions may be attached to the approval, such as
• Proper control of the pet.
• Cleaning up after the pet.
• Ensuring the pet does not disturb other residents.

‘No Pets’ Policies
A strict ‘no pets’ rule is allowed if adopted through a special resolution, requiring at least 75% approval (both in value and number) of those present at the vote.
Without this resolution, such a rule cannot be enforced.

Service Dogs 
Service dogs (e.g., guide dogs, hearing dogs, or therapy dogs) are automatically permitted under Rule 1(2) of the STSMA.
Proof of disability must be provided to the body corporate.

Removing Pets That Break Rules

If a pet breaches body corporate rules (e.g., persistent barking, disturbance, or lack of permission), the body corporate can do the following 

• Approach the Community Schemes Ombud Service (CSOS), private arbitration, or the courts to have the pet removed.
• Withdraw consent if there is a valid reason.
• Need Assistance With Pet Ownership Rules?

For expert advice on navigating pet ownership disputes in sectional title schemes, contact us today. We’ll help you understand your rights and responsibilities.