Sectional Title
There are several important things to realise when attempting create a Sectional Title Scheme over your property:
- Only existing buildings can be registered for sectional title.
- Building plans must be up to date.
- Existing tenants need to be informed.
- Allow 3 to 6 months for the survey and registration of your scheme.
- A Body Corporate will have to be set up to run the Scheme.
- All shareholders and the bondholder will have to give consent.
- Rates must be up to date.
- Consult your accountant on the implications of Capital Gains Tax, VAT and Transfer fees, especially if the property is held by a CC or Trust.
Briefly the process is that the Surveyor will:
- check that the buildings conform to the approved Building Plans.
- survey the beacons and boundaries of your site.
- measure up each proposed division.
- measure up any Exclusive Use Areas.
- draw up the plans as well as a Participation Quota.
- submit these plans to the Surveyor General’s Office for registration.
- Once approved, you must appoint an attorney to set up register the Sectional Scheme and arrange for the transfer of each Section as you sell it.
- You and your attorney will also need to set up a Body Corporate to run the Scheme.