What you need to know when selling a sectional title property for the first time

Selling sectional title property can be a complex and exciting process, involving unique rules and the involvement of a Body Corporate or Homeowners Association.

While apartments and townhouses are attractive to first-time buyers for their affordability and community feel, selling them involves navigating shared ownership and specific regulations. By understanding these elements, you can transform your selling experience into a rewarding journey, helping your property shine and attract the right buyer.

How to sell a sectional title property

Selling a sectional title property involves several essential steps, starting with preparation and concluding with the final transfer of ownership. Lew Geffen Sotheby’s International Realty has simplified the process to guide you through:

1. Understand the market: Begin by researching the local property market to determine the right price for your sectional title unit. Analyse comparable properties in your area and consult with a property practitioner who specialises in sectional title sales.
2. Get the right paperwork in order: Ensure you have all necessary documentation ready, including the title deed, the property’s management rules, and financial statements from the body corporate. This information will be crucial for potential buyers.
3. Consider upgrades and repairs: Evaluate the condition of your property. Small repairs and aesthetic upgrades can significantly increase your property’s appeal. Fresh paint, well-maintained appliances, and tidy landscaping can make a lasting impression.
4. Market your property: Work with a qualified property practitioner to create a comprehensive marketing strategy. Utilise online platforms, social media, and traditional advertising methods to reach potential buyers. High-quality photographs and well-written descriptions can attract more interest.
5. Host viewings: Organise open houses or private viewings for prospective buyers. Ensure that your property is clean and presentable, allowing buyers to envision themselves living there. Be prepared to answer questions about the property and the sectional title scheme.
6. Negotiate offers: Once you receive offers, collaborate with your agent to negotiate terms that reflect your objectives. Be sure to consider any additional expenses, including transfer fees and commissions, as grasping the costs associated with buying and selling property is crucial for both parties involved.
7. Complete the sale: Once an agreement is reached, the sale will go through the legal processes of transfer, which typically involve the conveyancer. They will ensure that all necessary documentation is in order and that the transaction complies with legal requirements.

The role of the body corporate in the sale

In a sectional title scheme, the body corporate plays a crucial role in managing the property and enforcing rules. Understanding their influence on your sale is essential:

• Management and governance: The body corporate manages the common property and makes decisions that affect the entire scheme. Buyers will want to know how well the body corporate is managed, so be prepared to provide information about their financial health, maintenance schedules, and any outstanding issues.
• Rules and regulations: Each sectional title scheme has specific rules governing the use of the property, which can impact potential buyers. These might include restrictions on pets, renovations, or usage of common areas. Be transparent about these rules, as they can influence a buyer’s decision. It’s also advisable to provide prospective buyers with a copy of the scheme’s rules and regulations before they sign the offer to purchase, as this can prevent issues related to strict policies that could arise later.
• Levy payments: The body corporate collects levies to cover maintenance and other communal costs. Ensure that you are up-to-date with your levies and provide potential buyers with information about the costs involved. Buyers will want to know what to expect in terms of monthly expenses.
• Additional documents: In addition to standard sale documentation, you'll need a levy clearance certificate from the Body Corporate and relevant documentation for the buyer’s bank to assess the financial status and management history of the sectional title scheme. Request these documents early to avoid delays in the sale process.
• Communication: Facilitate clear communication between your buyers and the body corporate. This could involve providing contact information for the body corporate’s managing agent or making arrangements for the buyer to attend an upcoming meeting to understand community dynamics. Both buyers and sellers should also be aware of factors such as the body corporate’s ability to restrict short-term rentals like Airbnb, as well as the importance of having reliable managing agents and checking city plans for future developments.

Unique factors to consider when selling your sectional title property

Selling a sectional title property requires you to be mindful of specific factors that are unique to this type of ownership:

• Shared spaces: The communal areas can significantly impact the desirability of your property. Highlight the benefits of shared amenities like swimming pools, gardens, or gyms. Ensure these spaces are well-maintained, as they contribute to the overall appeal of your unit.
• Market demand: Understand the demand for sectional title properties in your area. Buyers often seek out these types of properties for their affordability, convenience, and community feel. Tailor your marketing efforts to emphasise these advantages.
• Investment potential: Many buyers view sectional title properties as investment opportunities. Provide information on rental potential, local market trends, and any recent developments in the area that could enhance the property's value over time.
• Disclosures and transparency: Be upfront about any issues related to the property or the body corporate. Full disclosure builds trust with potential buyers and can prevent legal complications later.

Your home should inspire you

Your sectional title property should attract potential buyers, helping them envision a lifestyle within its walls. While selling a sectional title property for the first time may seem challenging, with the right preparation, clear communication with the body corporate, and transparency with buyers, it can be a rewarding experience. 

At Lew Geffen Sotheby’s International Realty, we combine cutting-edge technology and real-time data with the expertise of local specialists to give you an accurate property valuation. Our tailored marketing program, backed by proprietary tools, connects your property to a global audience, ensuring it reaches buyers worldwide. Connect with one of our property practitioners to help you sell your sectional title property.