What is the difference between a share block scheme and sectional title?
What is the difference between a share block scheme and sectional title?
The share block holders thus convert their shares in the company to ownership of immovable property. In the sectional title context, the share block company is the representative of all its members who still occupy apartments on the basis of their shareholding and contract with the share block company.
What is a Shareblock apartment?
Share block schemes are a means whereby people can get to own, say, an apartment in a high-rise building. Technically, you own a share in a company, which owns the building, but your share is linked to a particular apartment, perhaps with particular additional amenities – an undercover garage, for example.
Do you pay transfer duty on share block?
With effect from 1 January 2013, transfer duty is no longer payable in respect of a transaction contemplated in Item 8 of Schedule 1 to the Share Blocks Control Act, No 59 of 1980, whereby a right to or interest in the use of immovable property conferred by virtue of the ownership of a share in a share block company is …
What is sectional title in South Africa?
Sectional title describes the separate ownership of a unit within a group-owned complex or development. When applying for a bond on a sectional-title property, the bank will need to look at the financials of the scheme’s body corporate.
Can you bond a share block?
You may not be able to get a home loan to buy a unit in a share block scheme (unlike buying a freehold or sectional title property), because there is no property that can be bonded as security for the money advanced by the bank.
How much is transfer fees on a house in South Africa?
Transfer Duty
| Value of the property (R) | Rate |
|---|---|
| 1 250 001 – 1 750 000 | R10 500 + 6% of the value above R 1 250 000 |
| 1 750 001 – 2 250 000 | R40 500 + 8% of the value above R 1 750 000 |
| 2 250 001 – 10 000 000 | R80 500 +11% of the value above R2 250 000 |
| 10 000 001 and above | R933 000 + 13% of the value above R10 000 000 |
Do you pay tax when selling a house in South Africa?
You will only pay tax on a portion of the profit that you make from the sale. This means that you can deduct the cost of the asset (the base cost) from the proceeds of the disposal, as well as the agent’s commission on selling.
What are the disadvantages of sectional title?
The Disadvantages of Sectional Title Schemes
- Unreasonably high community levies.
- Restrictive rules and regulations.
- A possible lack of privacy due to a confining living space and social environment.
What are my rights as a sectional title owner?
An Automatic right attaches to owners making them members of the body corporate. The body corporate will then appoint Trustees of the Property to ensure its day to day running. As a Sectional Title Owner you have a responsibility to take care of your portion of the Property and pay your levies on time.
What is share title?
The shares entitles the owner the right to occupy a defined area (usually an apartment in the building) owned by the company. Unlike with strata title, the buyer of a company title home unit does not receive a certificate of title to the property. Instead, they receive a share certificate.