Greenleaf Property Developers

It is quite staggering how negligent buyers can be when examining the plans for properties bought off plan in sectional title projects, says Lanice Steward, MD of Anne Porter Knight Frank.

"Our experience has shown that the agent cannot insist too much on making the client examine his plans. Time and again we have found that they have not fully understood what they have signed for. Then, when they awaken to reality, they find themselves either having to pay more to get what they want – or blocked because their changes would not fit the overall design."

Steward says buyers must realise that contractors buy in bulk and that the materials they offer have usually been secured at a discount. Any change, therefore, is likely to be expensive.

Changes to the structure e.g. an extra window are very unlikely to be accepted because they compromise the design proportions.

An effort needs to be made by the buyer to understand what the developer plans to provide in the garden. According to Steward, this comprises only a stretch of roll-on lawn and a shrub or two, when the buyer expected full plantings, as shown in the marketing brochures.

Levies are another cause of misunderstanding. People moving into sectional title schemes are often unaware for the need for high levies. These levies have to be fairly high because they cover not just the upkeep and security of the property but also the rates and taxes. Also they do not understand that levies are provisional: developers cannot predict with complete accuracy how the building's running costs will pan out in a few years time.

Schemes, such as those in certain retirement villages which reduce levy increases by subsidising costs through a small percentage levy on resales, can often provide a solution to levy increases, said Steward. Similarly, loans by companies like Propell can put matters right and reinstate values.