Can I Sell My Section Title Even When Occupied By Tenants?

A homeowner can sell his property even when leased out to a tenant. Tenants should be made aware of this fact.  For a homeowner of a sectional title who is no longer in a position to pay off the mortgage, bond or levies, this is good news.

Owners of sectional titles are expected to pay levies belonging to a scheme. Owners are sometimes unable to pay the levies and/or pay off the mortgage and will then be required to sell.  If the sectional title is being rented at the time of an owner wanting to sell the proper, there would be nothing that legally prevents the owner from selling the property to another party in such an event.

In this case, the tenants have the right to stay on the property until such time as their lease agreement is up. The new owner is made aware of the tenants living on their property, and their right to stay until the time their lease agreement expires. It is the tenants’ duty to find out from the new owner whether or not the owner will extend the lease or offer a new lease agreement. Tenants are also expected to make alternative accommodation plans in case the owner intends to use the property for their own use, or if they do not feel comfortable with the new agreement.

Tenants have responsibilities to honor and the fact that the house belongs to a new owner does not release the tenants from their responsibilities. The buying of the house by the new owner doesn’t release tenants from their responsibilities either. Changes to the lease will have to be made and decided on by both tenants and new owners before the sale is concluded. Penalties will be issued if tenants do not continue paying the lease as normal until their contract expires. After the point of sale, the previous owner is released from fulfilling any requirements.

Ensure that you acquire the services of a skilled and experienced debt collection and sectional title attorney if you are any of the following:

  • Existing homeowner
  • Owner to a sectional title
  • A tenant
  • A head of a body corporate of a sectional title

JA Attorneys are specialist sectional title lawyers and have years of experience in dealing with sectional title disputes. Contact us today.