Understanding Your First Property Purchase Sectional Title vs Homeowners Association

Buying your first home is an exciting milestone—but it can also feel overwhelming, especially when you’re faced with unfamiliar terms like Sectional Title and Homeowners Association (HOA). These two types of property ownership are common in South Africa, and while they may seem similar at first glance, they come with very different rights, responsibilities, and lifestyle implications.

Whether you’re eyeing a trendy apartment in the city or a freestanding home in a secure estate, understanding the key differences between these ownership models is essential. This guide breaks down the five most important distinctions to help you make an informed decision that suits your lifestyle, budget, and long-term goals.

1. Ownership Structure

•  Sectional Title: You own a specific unit (like an apartment or townhouse) and share ownership of the common property—such as gardens, corridors, and parking areas—with other unit owners.

•  HOA: You own the entire property, including the land and the building. The HOA governs the broader estate or development, but you have full ownership of your stand.

Why it matters: If you prefer a lock-up-and-go lifestyle with shared maintenance, sectional title might suit you. If you want more autonomy and space, an HOA property could be better.

2. Governance

•  Sectional Title: Managed by a Body Corporate, which is automatically formed when the scheme is registered. All unit owners are members and vote on decisions.

•  HOA: Managed by a Homeowners Association, typically a non-profit company. Homeowners elect a board to make decisions on behalf of the community.

Why it matters: Governance affects how rules are made and enforced, and how disputes are resolved. Understanding who makes decisions is key to knowing your rights and responsibilities.

3. Rules and Regulations

•  Sectional Title: Governed by the Sectional Titles Schemes Management Act and Prescribed Management Rules, which apply to all schemes.

•  HOA: Governed by the HOA’s Constitution or Memorandum of Incorporation, which can vary widely between estates.

Why it matters: HOAs often have stricter or more customized rules (e.g., paint colors, pets, renovations), while sectional title rules are more standardized.

4. Levies and Financial Contributions

•  Sectional Title: You pay monthly levies to the Body Corporate, which covers maintenance of common areas, insurance, and administrative costs.

•  HOA: You pay levies to the HOA for services like security, landscaping, and communal facilities. However, you must insure and maintain your own property.

Why it matters: Levies can differ significantly. Always ask for a breakdown of what’s included and check the financial health of the Body Corporate or HOA.

5. Maintenance Responsibilities

•  Sectional Title: The Body Corporate maintains the exterior of buildings and common areas. You’re responsible for the interior of your unit.

•  HOA: You’re responsible for maintaining your entire property, including the exterior, garden, and any structures.

Why it matters: Consider how much time and money you’re willing to spend on upkeep. Sectional title offers more convenience, while HOA homes offer more control.

Final Thoughts

Choosing between a sectional title and an HOA property depends on your lifestyle, financial situation, and long-term goals. If you value convenience and shared responsibility, a sectional title might be ideal. If you prefer more independence and control over your property, an HOA home could be the better fit.

Before signing any offer to purchase, make sure you:

•  Review the scheme or HOA’s financials and rules.

•  Understand your rights and obligations.

•  Consult a property attorney or estate agent if needed.