Sectional titles have many benefits

2018-05-16 06:01
Raceway Park, a new development in Bloemfontein, offers the advantages of sectional title ownership.

Raceway Park, a new development in Bloemfontein, offers the advantages of sectional title ownership.

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What is the difference between Freehold and Sectional Title ownership?

Freehold or full title describes the transfer of full ownership rights when you own a property, which includes the building and the land it is built on.

These kinds of properties include free-standing houses, cluster houses, residential property used for business purposes and smallholdings.

Sectional title on the other hand, describes separate ownership of units or sections within a complex or development.

When you buy into a sectio­nal title complex, you purchase a section or sections and an undivided share of the common property. These are collectively known as units.

Sectional title dwellings comprise mini subtype houses, semi-detached houses, townhouses, flats or apartments, and duet houses.

What are the benefits of Sectional Title ownership?

  • The Body Corporate

Sectional title developments are governed by a Body Corporate, which is the collective name given to all the owners of units within any complex.

The Body Corporate is responsible for managing the scheme and taking care of its finances.

A managing agent is often appointed to take care of the duties of a Body Corporate, which includes collecting monthly levies, paying the scheme’s insurance premiums, arranging meetings, ensuring compliance with the Sectional Titles Act, and ensuring that the owners and tenants comply with the Body Corporate rules.

  • Security

Living in close proximity to your neighbours and in a more communal environment, is perceived by many to be more secure than living on a freehold property.

Added to this, most sectional title developments have excellent security around the perimeter and at the entrance of the development, which is all included in the monthly levies.

With regards to freehold properties on the other hand, owners are entirely responsible for their own security – they need to pay to secure their own peri­meter, and often for an armed response security company to patrol their area.

  • A fixed monthly cost

Unlike freehold properties, where the owners must pay for their own home insurance and for the upkeep of the pavement, garden and exterior of their homes, owners of sectional title units pay a monthly levy instead.

The levy includes the following costs – insurance premiums, maintenance of the common property, wages and salaries of cleaners, security and other staff involved in maintaining the common property, as well as any water and electricity required for the common property.

As a result, owners of sectional title units only need to pay for their rates and taxes, the unit’s insurance, the contents of their home, their own private gardens and for their monthly electricity and water consumption.

The cost of maintaining pools, tennis courts, communal park areas and clubhouses in the development is shared, which contrasts with freehold property, where the owner is responsible for all costs.

  • Affordability and communal living

Generally speaking, a sectional title unit within a complex is more affordable than a freehold house.

  • Also, on average, communities living in sectional title schemes boast close-knit communities and far greater interaction with their neighbours when compared to freehold neighbourhoods. If you would like to know more and have a look at the latest off-plan developments for sale at Raceway Park in Bloemfontein, contact our dedicated sales agents at National Real Estate on 051-405-9990, or on 079-824-0064, send an email to, visit and like the Facebook page @racewayparkbloemfontein.

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