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Freehold, Sectional Title and Estates

Freehold, Sectional Title and Estates…What is the difference?

If you have decided to start your homeownership journey, you will be exploring different kinds of properties in the locations you would like to live in. In South Africa we have three different kinds of residential property types:

  • Freehold
  • Sectional Title
  • Freehold in an Estate

All three of these residential property types of have different pro’s and con’s as well specific features which may suit your lifestyle better. Lets dive in with freehold houses.

Freehold

A freehold or full title home is when the building and land are all transferred into your name. These kinds of properties include free-standing houses, cluster houses, residential property used for business purposes, and smallholdings. Most property in South Africa is freehold.

Sectional Title

A sectional title house is where there is separate ownership of units or sections within a complex or development. So when you purchase in a sectional title development you are purchasing a section or sections and an undivided share of the common property.

Sectional title developments are managed by a Body Corporate. The Body Corporate is made up of all the owners.

Freehold in an Estate

You also get freehold homes in an estate. Here you will be buying a freehold property which usually forms part of a private, walled community. You will automatically become a member of the homeowner’s association which manages and runs the communal affairs of the estate.

So, before buying your home think about your lifestyle and what property type would suit you best. Remember to ask your agent what type of property it is that you are looking at, so that you can be sure to understand the different costs associated with it.

For example although freehold in an estate is freehold, you may still be governed by specific rules in the Home Owners Association.

 

Sectional Title has advantages related to shared costs of some items such as garden, lawn, pool and maintenance the exterior of the units.

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