Sectional title corner – How much do parking bays cost?
Hi, I came across this article and am in need if some assistance.
I bought a two bedroom flat in July 2013. The Chairperson of our board of trustees owns 90% of the garages on the property and now with more tenants and owners moving in, there is very little parking bays left on the premises to accommodate the residents.
It’s been a struggle since I bought and have requested that parking bays be allocated and finally they have agreed, BUT they will be selling the parking bays for R75,000 per bay to convert common property to exclusive use areas.
Our levies are R1,500 a month per unit (35 units in total) and they advised that in order to convert the common property to exclusive use areas, they would have to pay a great deal for administration costs. Our General Meeting will be held in September 2017 and I would just like to know how they have justified selling these bays at such a huge disadvantage to that of the owners when we have already paid so much for our units to begin with.
So my question is, how does one come up with the costs and are they in their right to sell it instead of giving residents and tenants bay allocations. Thanks – Renee
Hi Renee, The article you quoted is useful to you in the sense that it states how parking bays can actually be sold. The most important factor to consider is the fact that all owners need to unanimously vote in favour of converting the parking areas to exclusive use areas before it can be sold.
In other words, the trustees will need to consult with all owners to get a unanimous resolution. The conversion to exclusive use cannot be done without the knowledge and of all owners.
In terms of the costs, there is no set pricing structure. The price a parking area can be sold for depends on the location of the complex. In Cape Town parking is gold and worth top dollar. I’ve also known of cases where trustees get input from estate agents to determine a reasonable market related value.
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Who is Karien Coetzee?
Karien Coetzee is the national property management consultant at property management company, Trafalgar. She holds qualifications in sectional title schemes management and homeowners association management.