You just bought the townhouse of your dreams, and all of a sudden you are bombarded with new words, principles and things you have never heard of before.
Buying into a sectional title scheme — whether a flat, townhouse, or unit in an estate — is different from buying a freehold property. You’re not just buying walls and a roof; you’re buying a share in a community. Here’s what those often-confusing legal terms really mean.
1. Section / Unit
Your section is the part you own exclusively — usually the flat or townhouse itself. You hold a title deed for this section, registered in your name at the Deeds Office.
2. Exclusive Use Area (EUA)
An Exclusive Use Area is a space you don’t technically own, but you alone have the right to use it.
Examples: your parking bay, garden, or storeroom.
Always check if the EUA is registered on the title deed (best option) or only allocated in the management rules.
3. Common Property
This includes all areas shared by everyone — corridors, lifts, driveways, gardens, and the pool. The Body Corporate maintains these areas, using funds from your levies.
4. Participation Quota (PQ)
Your PQ is your share in the entire scheme, based on the floor area of your section.
It determines:
- Your voting power in the Body Corporate, and
- Your levy contribution (your portion of shared costs).
5. Body Corporate
When you buy into a sectional title scheme, you automatically become a member of the Body Corporate — all the owners together.
The Body Corporate manages the scheme’s finances, maintenance, and insurance.
6. Trustees
Trustees are elected by owners to manage the day-to-day affairs of the Body Corporate. They ensure rules are followed, levies are collected, and repairs are done.
7. Managing Agent
The Managing Agent is a professional company appointed to assist trustees with admin, accounting, and compliance. They’re not the “boss” but act under the trustees’ authority.
8. Levy
A levy is your monthly contribution to cover communal expenses — insurance, maintenance, security, and management fees.
Unpaid levies can lead to legal action and even loss of your unit, so budgeting for them is essential.
9. Special Levy
When major unexpected expenses arise — like roof replacement or lift repairs — a special levy may be raised in addition to your normal levy. Always ask the seller or managing agent if any special levies are pending before buying.
10. Conduct Rules
These are the “house rules” of the scheme — covering pets, noise, parking, renovations, and more. Read them carefully before buying to avoid nasty surprises.
When you buy a sectional title property, you’re buying:
- Ownership of your section.
- Shared ownership in the common property.
- A stake — and a say — in the Body Corporate.
Understanding these terms will help you know exactly what you’re paying for, what your rights are, and what responsibilities come with community living.