18 Jun 2020
What does it really mean to be an owner in a complex?
When you buy into a complex you will be buying a sectional title property or a cluster.
What is the difference?
A cluster is a stand-alone unit where you fully own the property inside and outside as well as the piece of land that the unit is positioned on.
A sectional title unit you do not own the exterior of the building or the land on which it stands.
What does this mean?
Usually in a sectional title development you will pay a levy which covers the cost of regular maintenance and repairs to the exterior of the building. This will also cover insurance and gardening and if applicable a guard or access system.
The levy for a cluster development is structured differently as the insurance for the building is the responsibility of the owner. The maintenance of the exterior of the building is for the owners, and the gardening in the space is for the owner.
This is a very simple explanation.
However, what is common in both cases is that management is very important for several reasons:
To keep the costs of the levies as reasonable as possible
To manage and prevent as far as possible any surprise special levies
To maintain the value of the property for resale purposes
A well-managed complex is always sought after, and banks and insurances are looking closely at how the asset is protected in terms of their liability and responsibility.
This is why CSOS have strictly pushed the policy of 10-year maintenance plans for all complexes which have either a body corporate or a homeowner’s association to ensure that everyone is protected.
Talk to us today and we can assist you to avoid surprises – quote the following code RAC 056 and you could be eligible to 10% discount on your first inspection.