When buying a sectional title unit, it’s important to do your homework, says Lolly Unterslak, property consultant at Jawitz Properties Atlantic Seaboard.
She advises potential sectional title owners to check the following five things:
1 Body corporate financial statements: Ascertain whether the body corporate is solvent, and look for large or unusual expenses that could indicate a problem.
2 Body corporate minutes: Will tell you whether the body corporate plans to raise a special levy for a major maintenance project or levies in general.
3 Benchmark your monthly levy: Compare the levies with those of similar complexes. Unusually high levies could have a negative impact when you sell.
4 Understand the difference between ‘common’ and ‘exclusive use’ areas: Within the body corporate property as a whole, there are areas zoned as common property and exclusive use areas.
5 Become familiar with the house rules: These will provide an indication about the owners and their values to help you decide whether to live there .