Warning for South Africans living in sectional titles

As sectional title living becomes increasingly popular in South Africa, experts have warned that disputes are common and can even escalate to court in some cases.

Demand for sectional title properties remains a dominant feature of South Africa’s residential property market.

According to ooba Home Loans’ oobarometer for the fourth quarter of 2025, 66% of individual buy-to-let investors applying for home loans in 2025 chose sectional title properties.

Over the past five years, demand has steadily increased across investor and owner-occupier segments, ooba reported.

Realty Property Group CEO Grant Smee said that while sectional title schemes offer buyers affordability and security, disputes can arise in shared living environments if expectations are not well managed.

“Sectional title ownership works best when everyone understands their role and responsibilities,” Smee explained.

“Problems typically arise when communication breaks down or when owners aren’t fully aware of the rules that govern their scheme.”

While owners have responsibilities to maintain their individual sections, Smee said they also have clearly defined rights under the Sectional Titles Schemes Management Act. These include –

• The right to well-maintained communal areas, funded through levies
• The right to challenge unlawful or incorrect charges and claim reimbursement where appropriate
• The right to access body corporate records, including budgets, financial statements and meeting minutes.

“Owners are often aware of what they have to pay, but not always aware of what they are entitled to. Knowing your rights makes it much easier to resolve disputes calmly and quickly,” Smee said.

Disputes within sectional title schemes tend to follow familiar patterns, he explained. One common area of conflict is maintenance and repairs, especially where it is unclear whether the issue concerns common property or a private section.

Financial disagreements, such as levy increases, special levies, reserve fund contributions or concerns around how funds are managed, also commonly lead to disputes.

Another common area of concern is rule enforcement, including noise complaints, pets, parking, short-term letting, and use of shared spaces.

Finally, boundary wall disputes between neighbouring property owners and trustee conduct – where owners feel decisions are inconsistent or outside the trustees’ authority – are also often sources of dispute.

“These are not unusual problems,” Smee said. “In most cases, they are manageable if they are addressed early and through the correct channels.”

How to approach dispute resolution

“Many disputes can be resolved internally if both parties are willing to engage constructively,” Smee explained.

“Trustees must act in good faith and in the best interests of the body corporate, and owners should allow the internal process to work before escalating the matter.”

According to Smee, the best approach to resolving any sectional title dispute is to engage directly.

“Owners must submit their concerns in writing to the trustees or managing agent, outlining the issue and referencing the relevant management or conduct rules,” Smee said.

Trustees also play a vital role in preventing disputes, with transparent communication, accurate record-keeping, and consistent enforcement of rules helping build trust and reduce friction within schemes.

“In certain instances, establishing a dispute resolution committee consisting of impartial owners can be beneficial, as they can objectively review the situation and make a recommendation,” he explained.

If internal engagement fails, Smee said that the Community Schemes Ombud Service (CSOS) can resolve issues such as –

• Levy disputes and special levies
• Maintenance failures or misuse of scheme funds
• Enforcement of scheme rules
• Allegations of improper trustee conduct

“CSOS is the practical next step for smaller or straightforward disputes. Its rulings are legally binding, and the process is generally faster and more affordable than litigation,” he said.

A recent Supreme Court of Appeal ruling confirmed that owners and bodies corporate are not required to exhaust CSOS processes before approaching the courts. This is relevant for more complex or high-value disputes.

“The ruling gives owners more flexibility. While court action should never be the first choice because of costs and time, it’s important to know that CSOS is not the only route available,” he said.

According to Smee, the most effective dispute resolution strategies focus on practicality rather than confrontation. These include –

• Mediation, either through CSOS or private mediators, to reach mutually acceptable outcomes
• Reviewing governing documents to ensure disputes are addressed in line with approved rules
• Seeking legal advice early in matters involving governance, levies or trustee misconduct
• Amending scheme rules, where necessary, to prevent recurring disputes

“With sectional title ownership continuing to grow, understanding the rules and avenues for disputes is vital when investing,” he said. “The support structures are there – owners just need to know how and when to use them.”