The 101 on Sectional Title

You might be wondering what processes one needs to undergo in order to establish a Sectional Title Scheme. What are the “dos and don’ts” that one needs to execute in order to run an orderly and successful Sectional Title Scheme? The key to understanding any form of theory is by actually tapping into its roots and knowing its history. Ask yourself what a Sectional Title Scheme is. How did the Sectional Titles Act originate? What year was the Sectional Title Act actually implemented?

Allow me to exercise your imagery skills and paint a vivid picture in your mind. A simple scenario. A large piece of land where property can be built is available for sale and we have ten individuals who each want to buy a piece or ‘section’ of that land. Each person has purchased a piece of that land and therefore each owner has a ‘section’ of the main land that he/she owns. Due to each individual owning a section of the land, it is morally incorrect for a single individual to manage and administrate all that goes on within the land. Therefor a Body Corporate is established. All owners collectively forms the Body Corporate auotmatically. Basically, the Body Corporate has a duty to manage and administer the Sectional Title scheme. The Body Corporate is managed and controlled by the Trustees who are elected by the owners, usually at an annual general meeting (AGM). The first act put in place was the Sectional Title Act 66 of 1971 and later replaced with the Sectional Title Act 95 of 1986

The size of the piece of the land that you have bought is your percentage of the total land and is called the Participation Quota (PQ). The PQ is used to determine your contribution percentage of the annual budget.
If you are looking for more insight on how to establish a Sectional Title Scheme and wish to receive training on the discussed. Do not hesitate to contact us as we do offer Sectional Title as well as Trustees training.