Sectional title properties — apartments, townhouses, cluster homes — follow the same basic transfer process as freehold properties. The same Deeds Office registration requirements apply, the same transfer duty scales are used, and the same conveyancing steps are followed. However, sectional title transfers come with additional requirements and costs that freehold transfers do not.
If you are buying or selling a sectional title unit in Pretoria, understanding these differences upfront will help you budget accurately and avoid delays. This guide covers the additional costs, common complications, and the regulatory framework that governs sectional title scheme transfers.
Additional Costs for Sectional Title
Beyond the standard transfer costs (transfer duty, Deeds Office fees, rates clearance, and attorney fees), sectional title transfers involve costs specific to the scheme management structure.
Levy Clearance Certificate
The body corporate, through its managing agent, must issue a clearance certificate confirming that all levies are paid up to date. Without this certificate, the transfer cannot be registered at the Deeds Office.
The managing agent charges a fee for issuing this certificate — typically between R1,500 and R3,500, depending on the managing agent and the complexity of the scheme's finances.
Managing Agent Administrative Fees
Some managing agents charge separately for transfer-related administration. This can include providing financial information to the conveyancer, issuing consents on behalf of the body corporate, confirming the scheme's rules, and verifying exclusive use area allocations. These fees vary by managing agent and are not standardised.
Body Corporate Consent
Where the body corporate rules require trustee consent for the transfer of a unit, this may involve a separate fee. The requirement for consent — and any associated cost — depends on the specific scheme's management rules.
Special Levies
Outstanding special levies must be cleared before transfer can proceed. If a special levy has been raised but not yet invoiced, clarity is needed on who bears the cost — the seller or the buyer. This should ideally be addressed in the offer to purchase to avoid disputes during the transfer process.
Our Fixed Fee Applies
Our R20,000 fixed professional fee applies to standard sectional title transfers. There is no premium for sectional title — the fee is the same as for freehold transfers.
The additional regulatory requirements that come with sectional title — corresponding with the managing agent, obtaining levy clearance, securing body corporate consent where required — are part of the standard transfer work we include in our fixed fee. These are not treated as extras or billed separately.
What Is Included
- All correspondence with the managing agent
- Obtaining levy clearance certificate
- Securing body corporate consent where required
- Verifying exclusive use area allocations
- All standard transfer work (FICA, document preparation, Deeds Office lodgement)
Third-Party Charges
The managing agent's own fees (for issuing levy clearance, admin charges, etc.) are third-party charges paid directly to the managing agent. These are not part of our professional fee and are itemised separately on your statement of account, just like transfer duty and Deeds Office fees.
Common Delays
Sectional title transfers can take longer than freehold transfers because of the additional parties involved. Here are the most common causes of delay and what we do to mitigate them.
Unresponsive Managing Agent
Some managing agents are slow to issue clearance figures or respond to correspondence. This is one of the most common causes of delay in sectional title transfers. We follow up proactively and escalate where necessary to keep the process moving.
Levy Disputes
If the seller disputes a levy amount, the managing agent cannot issue clearance until the dispute is resolved. This can add weeks to the transfer timeline. Sellers should resolve any levy disputes before listing the property to avoid this complication.
Special Levies
A newly raised special levy can delay clearance if the seller has not paid. If the special levy was raised after the offer to purchase was signed, the question of who bears the cost needs to be resolved between buyer and seller before clearance can be issued.
Rule Changes
Some bodies corporate update their management rules, which may affect transfer requirements. If rules have recently changed, there may be additional consents or documentation required that were not anticipated when the offer was signed.
Trustee Consent
Where the scheme's rules require trustee consent for the transfer, getting the necessary signatures can add days or even weeks — particularly in schemes where trustees meet infrequently or where not all trustees are readily available.
Exclusive Use Areas
Parking bays, storage units, gardens, and balconies in sectional title schemes are often designated as exclusive use areas (EUAs). Understanding how EUAs work is important because their transfer is handled differently from the unit itself.
Key Facts About Exclusive Use Areas
- Not separate units: EUAs are common property that has been allocated for the exclusive use of a specific unit owner. They are not independently registrable units.
- Separate transfer: Transfer of EUAs is handled separately from the transfer of the unit itself. The EUA right must be ceded from the seller to the buyer.
- Rules or cession: The body corporate rules or a cession document governs how EUAs are allocated and transferred between owners.
- Verify the OTP: If the offer to purchase includes parking bays or storage units, verify whether they are EUAs or separate sectional title units. This affects the transfer process and documentation required.
- Additional documentation: EUA cessions may require additional documentation and body corporate consent, which can add time to the transfer process.
The STSMA: Key Provisions
The Sectional Titles Schemes Management Act 8 of 2011 (STSMA) is the primary legislation governing the management of sectional title schemes in South Africa. Several of its provisions directly affect the transfer process.
| Provision | Effect on Transfers |
|---|---|
| Section 15(3) | The managing agent must issue a levy clearance certificate before the transfer can be registered at the Deeds Office. This is a mandatory requirement — no clearance, no registration. |
| Section 3(1) | The body corporate is established automatically when the sectional title scheme is registered. It exists as a legal entity with its own rights and obligations from that point forward. |
| Management Rules | The body corporate's management rules govern what consents are needed for transfer. These rules vary between schemes — some require trustee consent, others do not. |
| Superseded Legislation | The STSMA replaced the management provisions of the old Sectional Titles Act. The Sectional Titles Act 95 of 1986 still governs the registration and subdivision of sectional title schemes, but scheme management is now governed by the STSMA. |
Get a Quote
Buying or selling a sectional title unit in Pretoria? Our R20,000 fixed professional fee covers the full transfer — including all managing agent correspondence, levy clearance, and body corporate requirements. Use our transfer cost calculator for an instant estimate, or contact us for a detailed quotation.
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