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Frequently Asked Questions

1. WHY BUY DIRECTLY FROM A PROPERTY DEVELOPER?

Buying directly from a developer has a number of financial benefits as there are no transfer costs to pay, as there is no previous homeowner. M&T Development also includes the bond registration fees if the bond is with either First National Bank, Absa Bank, Nedbank, Standard Bank or SA Home Loans, if the developer’s appointed bond registration attorneys is used.

2. WHAT IS THE DIFFERENCE BETWEEN A SECTIONAL TITLE DEVELOPMENT SCHEME AND A FULL TITLE DEVELOPMENT?

A sectional title scheme is when a building has been divided into a number of sections to be sold under Sectional Title in accordance with the Sectional Title Act No.95. It is often simply referred to as the scheme. There is one erf number for all the units on the property and each will have its own individual Sectional Title Scheme number.

A full title development is when there is one dwelling on the erf and is not shared with other dwellings.

3. WHAT IS SECTIONAL TITLE OWNERSHIP?

Sectional title is a form of ownership whereby the owner holds/owns title to a section of a building that has been divided in to two or more sections. 

4. HOW MANY UNITS / SECTIONS ARE ALLOWED IN A SECTIONAL TITLE CHEME?

There is no limit to the number of sections in a scheme, as the number of sections is pre-determined by the size of the land on which the development is built.

5. WHAT WILL I OWN IN A SECTIONAL TITLE SCHEME?

You will own the section or sections as per the Offer To Purchase signed and registered into your name as well as an undivided share in the portion of the property known as the common property.

6. WHAT IS COMMON PROPERTY?

Common property is the land included in the scheme along with all the part/s of the building/s that are not included and described in the various sections. Typical examples would be driveways, gardens, paved areas, staircases, under cover verandas, parking bays, walls, foundations and the roof, as well as the main entrance to the development and any facilities for example a club house, swimming pool etc.

7. WHO IS THE OWNER OF THE COMMON PROPERTY?

The body corporate is the owner of the common property.

8. WHAT IS A BODY CORPORATE?

A Body Corporate is the legal term for the combined registered owners of all sections in a sectional title scheme.

9. WHAT ARE THE BODY CORPORATE’S MAIN FUNCTION?

A Body Corporate is managed by trustees who are elected by the owners at an annual general meeting (AGM). The Body Corporate has to manage the daily affairs of the scheme as well as its financial affairs. 

10. WHAT / WHO ARE THE TRUSTEES?

The Trustees (or Board of Trustees) is a management committee elected out of body corporate members (owners of sections).  

11. WHAT ARE THE MAIN FUNCTIONS OF THE TRUSTEES?

The Trustees are responsible to manage the daily affairs and ensure that levies are optimised when it comes to spending – including the maintenance of the common property, building insurance, security etc.

12. WHAT IS A MANAGING AGENT?

A managing agent is a company appointed by the trustees of a property to manage that property in accordance with the terms of the statutory requirements.

13. WHAT ARE THE MAIN FUNCTIONS OF THE MANAGING AGENT?

The managing agent provides the trustees with regular financial information and assists them to make decisions. The managing agent taking primary responsibility for administrative and record keeping requirements and assisting in the physical management of the scheme. 

14. WHAT ARE EXCLUSIVE AREAS AND WHO OWNS IT?

These are areas that have been allocated exclusively to a specific section and which then befall the owner of that section, e.g. an enclosed yard.

15. WHAT IS THE PARTICIPATION QUOATA (PQ)?

This is the size of the section you own in relation to all the sections combined. Example, you have purchased 60m² in a scheme of 20 units all of the same size. Your PQ is therefore 60m² of 1200m² which is equal to 5%.  The participation quota is always shown on the Sectional Plan of the Scheme.

16. WHY IS THERE A PARTICIPATION QUOTA AND HOW IS IT CALCULATED?

A Participation Quota is used to calculate the financial portion of each owner towards:

  • Levies
  • Special levies
  • The undivided share in the common property of each owner of a section
  • Any other items where levies paid is mentioned
17. WHY DO I PAY LEVY AND HOW IS IT CALCULATED?

Levies in sectional title complexes are used for things like general maintenance, payment of building insurance, security, reparations, maintenance of communal areas.

Levies are calculated according to the participation quota of your unit.

18. WHY DO I PAY RATES AND TAXES?

Rates and Taxes are the charges or fees which are payable to the Local Municipality.  All properties have rates and taxes, irrespective if the property is a full title property or a sectional title property. 

19. FROM WHEN AM I RESPONSIBLE FOR THE RATES AND TAXES?

From date of registration (when ownership of the property is passed to you).

20. WILL THE DEVELOPER ASSIST ME WITH OBTAINING A BOND?

Yes, M&T Development have an inhouse team of experts to assist with all your bond related questions and will communicate with the various financial institutions to obtain the best interest rate on a bond for you.

21. CAN I APPOINT MY OWN ATTORNEY TO DO THE TRANSFER?

No, not if your property is bought directly from the developer.

22. WHAT IS A BOND ORIGINATOR?

A bond originator’s role is to procure a bond on your behalf. We essentially act as an intermediary between you and the banks, assisting you in compiling one set of paperwork, and then submitting the home loan application to all the major banks on your behalf.

23. CAN I BUY A UNIT FROM PLAN?

Yes, you can. As a developer we market before construction commences and once a show house similar to your unit is available you will be invited back for a viewing. Before final sign off with the bank you will need to do an inspection on the property as well.  The Bank will also send out a valuator to ensure that the property sold from plan is the same as the building constructed. 

24. CAN I BUY THE SHOW HOUSE?

As developers we sell the show house only once all the other units are sold.

25. WHO HAS ACCESS TO THE FACILITIES ON SITE?

Only home owners or their tenants that live in the scheme has access to the facilities.

26. WHAT IS A BIOMETRIC ACCESS SYTEM?

The Biometric Access Control system is an electronic system that allows a person who is registered on the system to access the premises (information from the person must match the data on the system).

27. WHAT IS SMART METERING?

Smart metering is an electronic device that records information such as consumption of electric energy, voltage levels, current, and power factor. Smart meters communicate the information to the consumer for greater clarity of consumption behavior and customer billing. 

28. WHEN CAN I OCCUPY THE PROPERTY?

The property can be occupied on registration of the property to your name or if an occupation date was specified on the Offer to Purchase, on said date. 

29. HOW DO I KNOW WHAT MY REPAYMENT WILL BE AND IF I CAN AFFORD THE PROPERTY?
A Home Loan calculator works out the repayment of a specific bond amount you can apply for. For easy reference our website has a calculator available for each property.

For affordability, an affordability calculator with your salary after tax, total monthly expenses, interest rate and loan term (years over which you will pay off your bond) are used to estimate the total loan amount you can afford with the monthly repayment amount.

30. WHAT HAPPENS AFTER I SIGNED AN OFFER TO PURCHASE?
  • The OTP is sent by the agent to the developer to accept.
  • Once signed, you will receive a copy of OTP and M&T’s bond department will contact you to arrange finance via the four major banks.
  • Once a bond is approved, and you have accepted the bank’s offer, the instruction to proceed is sent to the developer’s attorneys.
  • The attorneys will contact you to sign documents required for transfer and registration.
  • Once the unit is ready for transfer (as per conditions on the contract) the attorneys will proceed to lodge the matter at the Deeds Office.
  • Upon registration, the keys of your new home will be handed over to you by your agent on site.