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    Home»Property»Duets are sectional title too
    Property

    Duets are sectional title too

    The Free StaterBy The Free StaterJuly 29, 2022No Comments2 Mins Read
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    A duet unit is by definition a two-unit sectional title scheme. Or at least is supposed to be.

    However, I have seen these mini schemes with up to five units. Not sure how they get away with it.

    Either way they are still mini sectional title schemes and have to be treated like their big brothers – but they aren’t.

    Usually, each owner has their own rates account, own water and electricity account and just does their own thing. But that is where the complications come in.

    Some owners have a bond and thus insurance. Some bought cash and forgot.

    A body corporate is supposed to have a body corporate policy on all the buildings.

    Let’s say that there is a fire in an insured unit but it also results in the building down of an uninsured unit.

    And because this is a body corporate and all parties are trustees that are expected to have a body corporate policy, they will be equally negligent.

    That means that the owner will have to pay 50 percent — or whatever the Participation Quota (PQ) ratio is — of the uninsured unit owner’s loss.

    Would you like to be in that position? I don’t think so.

    The same applies to maintenance.

    So, if your neighbour thinks that his roof needs to be replaced, you will be liable for that same PQ part of the replacement cost.

    The trouble is that nothing will happen while everyone is happy and things are running smoothly, but when there is a major problem, people look for solutions to their financial crisis.

    It’s not worth it.

    Run your mini scheme properly and contact Community Schemes Ombud Service if your neighbour won’t.

    • Mike Spencer is the founder and owner of Platinum Global. He is also a professional associated property valuer and consultant with work across the country as well as Eastern Europe and Australia.

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