Property News & Updates

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Follow up – Management of Sectional Title Schemes during Lockdown

09
Apr
Category Updates

Following on from our article dealing with the use of common property in Sectional Title Schemes during the COVID-19 lockdown we have received a number of queries asking whether this same advice applies to owners in Homeowners’ Associations and Share Block Schemes. In order to answer these queries one needs to compare the nature of ownership in each of these three schemes.

In a Sectional Title Scheme you own a section, and a share of the common property, for residential purposes. It is the ownership of a share of common property that in our opinion grants owners the right to use such areas during the lockdown.

A Homeowners’ Association is a legal body in which individuals properties are exclusively owned, and the communal infrastructure and facilities are owned by the Association. There is therefore no joint ownership of common property and as such owners should be confined to their particular property during the lockdown period.

In a Share Block Scheme individuals own a share in the Shareblock company, which in turns owns the building in particular. By virtue of a use agreement individuals are then granted the right to use a particular unit in the scheme. Once again, there is no joint ownership of common property and therefore owners in a Share Block scheme should be confined to their particular property during the lockdown period.

As can be seen above, it is the unique nature of ownership in sectional title schemes that gives owners the legal right to use common property during the lockdown period and therefore our advice cannot be applied to HOA’s and Share Block schemes.

 

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