It is important for every sectional title buyer to make very sure about what exactly they are buying into. Unfortunately, there is no legal requirement on the owner of a sectional title unit owner to disclose all the material facts about the unit and the sectional title scheme. The responsibility for learning all the facts about a sectional title unit is for the prospective buyer.
The Estate Agency Affairs Board does require a real estate agent, who has been instructed to sell a sectional title property, to disclose certain important information to every prospective buyer.
Sectional Title Scheme Rules
The real estate agent should provide a prospective sectional title purchaser with a copy of the rules that govern the sectional title scheme. And for buyers planning on buying directly from the owner of a sectional title property, according to the prescribed management rules, the trustees must provide a copy of all the rules governing the sectional title scheme, if a buyer applies for such a copy.
Contact Details
A real estate agent should provide prospective purchasers with a list of names for the body corporate trustees, and if applicable, the sectional title scheme's managing agent.
Levy Information
Buyers are also entitled to be informed of the levy payable in respect to the sectional title property, as well as whether any increase in the levy is being contemplated. Details about levy increases can be obtained from the seller, the trustees of the body corporate, or the sectional title managing agent.
Financial Provision
A real estate agent, mandated to sell a sectional title property, should also provide prospective buyers with details about the extent to which the body corporate has made provisions for future repairs and maintenance expenses for the sectional title scheme. Details about bodyt corporate provisions for future expenses can be obtained from the seller of the sectional title property, or the trustees of the body corporate.
Right To Extend
If the developer of a sectional title scheme, or the sectional title body corporate, has a right to extend the scheme by building additional sectional title units in the scheme, this right to extend should be included in the contract of sale of every sectional title property in that scheme. If the right to extend is not contained in such a contract clause, the contract of sale will be voidable by the buyer, if he/she so wishes.
Sectional Title Disclosure
It is in every sectional title buyer's interest to find out as much as possible about the sectional title scheme they are considering. Once again, what you DON'T know can hurt you.
Don't be afraid to ask, because you have a right to know exactly what you are buying, when making an offer to purchase a sectional title property.
