Sectional title property is a concept that may not be very well-known to investors and buyers. This is a form of property ownership that strikes a balance between individual and shared ownership. 

In essence, a sectional title property allows you to own a specific unit (e.g., apartment or townhouse) within a larger complex or development. Meanwhile, you also share ownership of common areas (e.g., parking lots, lobbies, elevators, gardens). 

Let’s ponder on how sectional title works, how it differentiates between freehold property, and its pros and cons.

How Does Sectional Title Property Work?

In its core, sectional title property is a model of ownership popular in modern developments. These sectional title properties include apartment buildings, townhouses, and more. 

This means that you will get exclusive ownership to a specific unit but are also responsible, along with other owners, for the communal areas. It brings about convenience and a sense of community between property owners.

Additionally, a sectional title property model is usually composed of three main elements. 

• Owners’ section pertains to your unit where it is registered under your name.
• Exclusive use areas refer to sections in the building or development where you need to pay a fee to gain exclusive rights (e.g., parking space, storerooms).
• Common property are areas that every owner in the building or development can freely use and enjoy.

Sectional Title vs. Freehold

To fully grasp what sectional title property is, it is important to compare it with freehold property ownership. Let’s discuss the sectional title and freehold in detail for better understanding.

Freehold Property

With freehold property, you own both the property and the land it’s built on. You also have full control and responsibility over the property. This includes all decisions, maintenance, insurance, utility bills, and modifications. Moreover, freehold properties mostly refer to villas, standalone homes, cluster homes, and more. 

Sectional Title Property

In sectional title property, you own a specific “section” or “unit” within a larger development or building. This could be an apartment, townhouse, or residence that’s part of a shared complex.

While you hold exclusive ownership to your unit, you share ownership of the common areas with other unit owners. These common areas include amenities like gym facilities, swimming pools, gardens, and more.

Moreover, the maintenance and management of the common areas are usually handled by the committee of unit owners. The upkeep will then be paid through the contributions from all the unit owners.

Differences Between Sectional Title Property and Freehold Properties

Advantages and Disadvantages of Sectional Title Property

Advantages of Sectional Title Property

One of the advantages of sectional title property is its affordability and convenience. Usually, these properties are more affordable than owning both units and land. Plus, there’s also the convenience from shared responsibilities for the upkeep of common areas. 

Another benefit is the access to amenities that might be too expensive to maintain on your own. In many complexes and developments, you’ll have shared access to amenities like gyms, tennis courts, 24-hour security services, and more. You’ll only have to pay for the portion of the overall cost of maintaining the condition of these amenities. 

Moreover, sectional title properties often have tight security and are located in prime areas. This offers you peace of mind and great connectivity. 

Key Advantages

• Affordable properties
• Variety of amenities
• Heightened security
• Shared maintenance cost

Disadvantages of Sectional Title Property

Despite the many perks, sectional title property does come with some limitations. The biggest drawback is that you have less control over your property. You might find it hard to make changes in your property, host events, or even adopt a pet. 

Additionally, since the management of communal areas is managed by a body corporate, there are cases when owners feel it’s not managed properly. Plus, maintenance fees that you pay monthly may increase over time, which can impact your budget.

Furthermore, for changes in rules and regulations, you might have limited influence as an individual. Lastly, living close to others may not be all too pleasing for you as well, which can cause you stress.

Key Disadvantages

• Limited control
• Prone to mismanagement
• Limits influence in rules and regulations
• Living close to others

Conclusion

Overall, sectional title property in Dubai is a unique form of ownership that blends exclusive and shared responsibilities. It’s an excellent choice if you want the convenience of community living with premium amenities without high individual maintenance costs. However, it does have limitations when it comes to making changes and freedom.

If you’re considering purchasing a sectional title property, it’s important to weigh the advantages and disadvantages to see if it fits your lifestyle and long-term plans. 

Additionally, if you’re looking for properties or want expert advice on real estate investment in Dubai, APIL Properties is here to guide you. Our expertise and extensive experience can help you navigate the complexities of sectional title ownership.

FAQs

What is the sectional title property description?

Sectional title property allows you to own a specific unit within a larger complex or development. 

What are the key points that differentiate sectional title property from freehold?

The main criteria that differentiate sectional title from freehold are ownership type, maintenance responsibility, and extent of control.

What are the sectional title advantages?

Sectional title properties are typically more affordable, with a variety of amenities within the larger development or complex. Most of these complexes offer heightened security and shared maintenance costs for communal areas.