SKG Homeloans

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Explained: The differences between freehold and sectional title ownership

When it comes to property ownership, there are two main types: freehold ownership and sectional title ownership. Here’s an explanation of the difference between these two types:

  • Freehold Ownership: Freehold ownership is where you own the land and any buildings on it outright. This means that you have full control over your property, and you can do whatever you want with it, subject to local zoning and building regulations. You are also responsible for maintaining the property and any improvements made to it.
  • Sectional Title Ownership: Sectional title ownership is where you own a portion of a larger property, such as an apartment or a townhouse, and share ownership of the common areas with other owners in the same building or complex. This means that you have less control over your property, as you will need to adhere to the rules set out in the sectional title agreement, which typically includes restrictions on alterations, use of common areas, and the like. You also share the costs of maintaining the common areas with the other owners in the complex.

 

Here are some key differences between these two types of ownership:

  1. Control: Freehold ownership gives you more control over your property, while sectional title ownership gives you less control and more shared responsibilities.
  2. Maintenance: Freehold owners are solely responsible for the maintenance and upkeep of their property, while sectional title owners share the costs and responsibilities of maintaining the common areas.
  3. Costs: Freehold ownership typically involves higher costs, as the owner is solely responsible for all maintenance and repairs. Sectional title ownership involves lower costs, but the owner must share the expenses with the other owners in the complex.
  4. Flexibility: Freehold ownership provides more flexibility in terms of what you can do with your property, while sectional title ownership involves more restrictions.

 

In summary, freehold ownership gives you more control over your property but comes with higher costs and maintenance responsibilities. Sectional title ownership involves less control but lower costs and shared maintenance responsibilities. Which one is best for you depends on your needs and preferences.