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    Home»Property»Difference between sectional and full title property
    Property

    Difference between sectional and full title property

    The Free StaterBy The Free StaterOctober 16, 2020Updated:October 16, 2020No Comments3 Mins Read
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    I have been asked to explain the difference between a sectional title and a full title property and which could be a better option to buy.

    We are very lucky in South Africa to have an exceptionally good land registration system at the Deeds Office.

    Every single piece of land in the country has been surveyed in great detail — down to .5 centimetres — and is accurately mapped.

    Each piece of ground is registered at the Deeds Office and has what is called a title deed which gives a diagram of the site and any restrictions on the property.

    These could include whether or not it can be used for business or residential purposes or if there are road widening servitudes and the like.

    A full title property is one where there is a single undivided erf or stand – a typical house would be a full title erf, but so would a farm or a railway station.

    Since 1976 people have been able to buy a part of a building or complex under sectional title, which gives the buyer a part title in a property.

    This means there will be more than one owner for the building or complex and that each owner has rights to a particular part of the property – as opposed to being the joint owner of the entire building.

    This is called a sectional title property.

    One would buy a townhouse or flat in a bigger building and what you own is the inside of the box – that is your flat or townhouse.

    And based on the size of your property, you may also own a percentage of the common property which is not part of your unit.

    So, which is better between the two?

    Neither – it all depends on what your needs are.

    For example, in my opinion a house is not usually a good investment for rental because the risks are much higher compared to a flat or townhouse.

    Further, caring for a house is more difficult because maintenance is not shared.

    If you have storm damage in a house and the tenant is not there when it happens nobody will tell you that you have a problem, but in a flat or townhouse it would immediately be repaired under the common insurance by the body corporate.

    However, if you want to do your own thing then a house or a full title property could be ideal as you may not like having close neighbours which is common in flats or townhouses and will not enjoy having to abide by the rules of a complex. 

    • Mike Spencer is the founder and owner of Platinum Global. He is also a professional associated property valuer and consultant.

    body corporate housing investment mike spencer platinum global property property property matters real estate sectional title title deeds
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    The Free Stater is an independent English-language newspaper published in and for the Free State province of South Africa that offers authoritative and trusted journalism cutting across various quality-of-life issues.

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