What You Should Know When Selling Or Buying A Sectional Title Unit Or Apartment
Category Sectional Titles and Body Corporate
Sectional title units have grown in popularity over the last number of years because of the increased security and affordability that these units offer. This is particularly true for first-time buyers or young couples starting out.
Many would think that the sale process would be rather straightforward, but as with any transaction, there are a number of key points that should be considered. The following should be taken into account by both the seller and prospective buyers when it comes to the transfer of a sectional title unit:
The role of the body corporate in the sale
The body corporate acts as a governing body of a sectional title scheme. This body is responsible for providing a number of documents that would not be required in the transfer of a freehold property. A levy clearance certificate that indicates that the seller is up to date with all levy payments is always required as part of a sectional title property transfer, and will be issued after payment of the required amount is made by the seller.
The purchaser’s bank might also request certain documents such as the sectional title scheme financial statements to assess its financial status and to ensure that the scheme is effectively managed. These will also be provided by the body corporate.
Additional information required
Before an offer to purchase is signed, the rules of the sectional title scheme should be discussed with the prospective buyer and a copy of these should be provided to him or her. This will ensure that there is no misunderstanding between the parties regarding what is expected of each person living in a unit and what is allowed. For example, not all sectional title schemes are pet friendly and this might be a deciding factor for a purchaser. Some schemes may also place a limit on the number of occupants allowed per unit.
The seller should provide the necessary documents and information to the agent before the property is advertised or have them on hand if they intend to sell the property privately. Further, if there are any special levies that are being charged, these should be made clear to the purchaser.
Buyers must be vigilant before signing an offer to purchase as investing in a property is a long-term commitment. If a purchaser neglects to request the documents mentioned, he or she might pay the price at a later stage.
Assistance from professionals
Any seller or purchaser should consult with an experienced estate agent or a conveyancing attorney when a decision to buy or sell is made. This will ensure that there are no hidden costs or unpleasant surprises. Working with reputable property professionals means that each party is able to focus their attention on what is important to them and will help ensure a successful property transfer and a positive experience.
Author: Snymans Inc Attorneys