A sectional title is a property divided into sections, of which each section is owned privately. Last week we touched on common property within a sectional title, and what the common property entails. This week we will go into a little more detail regarding common property, and what this property is in the legal sense.
Common property is owned as an undivided share. This means that no owner has particular ownership of any part of the property. However, in monetary value, the proportion of the common property owned by each owner is proportionate to the quota of their respective sections owned. This means that if an individual owner owns 50% of the property value in sectional titles, in monetary value he/she owns 50% of the common property.
The Sectional Title Deed
The deed to the sectional title outlines the laws regarding the use of the common property. It is here that the quota system is explicitly discussed, but also simultaneously explains the disposal of the property in association with the undivided property as a single unit. Furthermore, if insurance is taken out for a sectional title property, then that insurance also covers the undivided share of the common property ‘belonging’ to the sectional title owner. This is not necessary explained in the title deed, but rather applies in every event.
Common Property Resolution
The owners of the sectional titles may, by a unanimous vote, direct the Body Corporate to either sell or lease a portion of the common property. This is done by a property resolution, and the resolution is drafted to include any necessary information referring to the property. This is the only time that a land’s deed can be changed from that of common property to otherwise. The Body Corporate is required to reregister the land and involve a Surveyor-General to agree to the repurposing.
There are a few more intricate and complex laws regarding common property, some of which are not understood widely by the entire Body Corporate or the owners of the sectional titles. Therefore, it is important that Body Corporates hire the services of attorneys to assist them in cases regarding sectional titles, and litigated procedures that involve property. In these events, make sure that you contact Ivan Zartz Attorneys. We are always willing to help!