19 May 2025

Property Ownership in Residential Complexes

Common Types

In South Africa, property ownership in residential complexes typically falls under a few key types, each with different legal and practical implications. The most common types include:

1. Sectional Title Ownership
This is the most common form of ownership in residential complexes (such as townhouses and apartments).
  • Ownership Includes:
A unit (e.g., an apartment or townhouse).
An undivided share of common property (e.g., gardens, corridors, swimming pools).

  • Managed by: A Body Corporate, made up of all the unit owners.
  • Governing Law: Sectional Titles Schemes Management Act, 2011 (STSMA) and the Sectional Titles Act, 1986.
Key Features:
  • Owners are automatically members of the body corporate.
  • Monthly levies are paid for the maintenance of common areas.
  • You have exclusive use areas (e.g., parking) if allocated.
2. Share Block Scheme
Less common, but still found in some older or coastal developments.
  • Ownership Includes:
Shares in a company that owns the building.
The right to occupy a specific unit via a use agreement.

  • Managed by: The Share Block Company.
  • Governing Law: Share Blocks Control Act, 1980.
Key Features:
  • You own shares, not the physical property.
  • The company holds title to the land/buildings.
  • Harder to finance through traditional home loans.
3. Full Title Ownership (in a Gated Estate)
More common in freestanding homes within estates rather than apartment-style complexes.
  • Ownership Includes:
Full ownership of the land and all structures on it.

  • Managed by: A Homeowners’ Association (HOA) if in a gated estate.
  • Governing Law: Companies Act (if HOA is a non-profit), and common law principles.
Key Features:
  • Greater control over your property.
  • Still subject to HOA rules and levies.
  • Often found in lifestyle or golf estates.
4. Life Rights Scheme
Common in retirement villages.
  • Ownership Includes:
The right to live in a unit for the rest of your life (or a fixed period).

  • Managed by: A management company or developer.
  • Governing Law: Housing Development Schemes for Retired Persons Act.
Key Features:
  • No transfer of title—just a right to occupy.
  • Generally less resale flexibility.
  • Typically includes care services or communal facilities.