How is Sectional Title Different? – Lonehill Village Estate

Judging by the questions raised with the Estate Managers and some reactions it is apparent that several owners (and tenants) do not fully understand the concept of Sectional Title ownership. The legislation “Sectional Titles Schemes Management Act” & the Prescribed Management Rules and the Conduct Rules define your rights and responsibilities in the Estate.

There is a big difference in ownership rights between Sectional Title and other forms of community ownership. Below is a brief explanation for those who are looking for clarification. The Lonehill Village Estate Estate Office can answer most questions, or you can read the many articles on this web site, or speak to our managing agent.

To know more about sectional title, Whitfields our managing agent, also has an article on Sectional Title: WHITFIELDS

A variety of other websites are available with information on Sectional Title.

Click to download:

OWNERSHIP
Those moving into a sectional title scheme for the first time may find the change confusing. Although ST has been around a long time the different types of ownership are often not clearly understood by many new estate agents, and buyers and tenants are often misinformed or ill advised resulting in unhappy residents.

FREEHOLD is the typical house where you own the land and the building and can do anything to it subject only to the city bylaws and common law. You manage all costs and maintain your own property, including painting and all repairs and pool services. You fight with your neighbours dogs, the council, gardeners, plumbers, security company etc
“CLUSTER” is a community scheme similar to freehold in that you own a piece of land and the building on it. You maintain your own home and garden and pay all your own costs etc but your title deeds will also require you to abide by a constitution and rules of a “Home Owners Association” (HOA). This may limit what is acceptable, including the look, colour and style of your home, your garden, what you may do etc. The house or conduct rules are about behaviour, noise, animals etc. The HOA is only the registered owner of the common property like boundary walls, central pools and gates, driveways, street lights etc and they collect a levy to cover those costs. They may also handle security and other selected services. These may fall under the Companies Act or be managed by a Constitution. The structures vary. The split of costs is not regulated other than by the constitution of the HOA.
The are also Retirement Estates that may consist of a combination of community schemes and there are Life Right retirement estates that are controlled by special legislation. These are similar to “Leasehold” properties where you do not own anything other than the right. Sectional Title is different in many way

SECTIONAL TITLE is community living in a real democratic sense.

You are part of a group of owners collectively known as the “Body Corporate” (BC) that jointly own all the common property (land, buildings, walls, gates, roads, infrastructure and facilities). The body corporate is responsible for the administration of the whole estate in accordance with the requirements of the Sectional Titles Schemes Management Act. They manage all the costs which are then recovered from owners by way of contributions (levies) based on your unit size, and other direct charges for services used like Electricity.

Your “section” consists of the UNit you exclusively own and are personally responsible for. It is only the INSIDE of your unit. Your private garden, your exterior walls, your roof and carports are all common property, even if you do have exclusive use.

Your section also consist of an undivided share of the common property with all the other owners. You have a democratic vote about the running of the body corporate and must attend body corporate general meetings and vote, and occasionally even attend trustee meetings to express your views or hear what is being done by the trustees that you appoint every year.

You should participate and volunteer to help the BC, including becoming a trustee sometime. It is vital that you know about the Sectional Titles Schemes Management Act and the unique limitations and restrictions of the schemes Conduct Rules. You must pay your levies and charges every month to maintain the financial stability of the estate and always abide by the conduct rules to maintain harmony and a pleasant environment for all fellow owners to live in.

To protect all the members of the body corporate, the Sectional Titles legislation including the Management and Conduct Rules define how the estate must be run and the owner’s responsibilities. This determines what an owner can do to their unit, and how a resident must behave in the estate.

These rules are decided upon by all the members of the BC at a special meeting and are registered at the Ombuds office. These rules apply to all tenants, guests and contractors, although the owner always remains ultimately responsible for their actions. Trustees are appointed by the BC to enforce these rules and manage the estate’s day to day needs on behalf of the Body Corporate

An important overriding principle is that all residents are entitled to live in a reasonably harmonious environment and enjoy fairly undisturbed use of their unit with reasonable privacy. They must all conform to the conduct rules, pay their levies and respect the common property.