BUYER’S CHECK LIST before BUYING INTO SECTIONAL TITLE

1) Have a really good look at the general standard of the building; to establish e.g. how well run it is, going forward if it is going to need money (from you) to maintain it, the state of the paint; the appearance of the pool; how well maintained the garden is; was the security strict and efficient when you entered; what is the general standard of cleanliness; what is the availability of parking?

2) What do you get with your section (door number)?

E.g. Storeroom/s?      Parking bay/s?   Garage/s?      Staff room?

Need to see actual proof – either as a title deed or a stamped exclusive use schedule, or the SG diagram, as the seller may not have the actual right to what he is using (only renting it)

3) Open ground? Check on the sectional title plan and ask management, (especially if a new complex) whether the Developer has rights to extend. This can be very disruptive.

4)  Who is the Managing Agent? One registered with NAMA & with a current fidelity fund certificate from the EAAB or is it self- managed which can presents problems.

5) Get a copy of the Conduct Rules. See that there is nothing that could make you reconsider.  If you don’t like the rules, don’t buy into the scheme!

6) Review the most recent AGM Package especially the audited financial statements. If they are more than 6 months old, ask for the current management accounts.

7) Investigate the arrear levy situation; this can heavily affect the cash flow of the complex and impact the services and maintenance etc.

8) Get proof of current insurance on the building and the value of the flat in which you are interested.

9) Get a copy of the most recent levy certificate from the owner which will indicate what monthly charges you will need to budget for.

By S.  Baillie

www.fitzanne.co.za/property-management/