ISSN: 2347-7474
International Journal Advances in Social Science and Humanities
Available online at: www.ijassh.com
RESEARCH ARTICLE
An Evaluation of Sectional Title Schemes on the Provision of
Residential Housing in Gaborone
Kampamba Johnson1*, Nkwae Boipuso2, Ramagonono Gaisi3
Department of Civil Engineering, University of Botswana.
Abstract
Sectional title schemes are a new form of property ownership in Botswana. The purpose of this study was to identify the problems that are faced in development, registration and management of sectional title schemes in Gaborone, Botswana. Furthermore, the study seeks to establish the growth rate of sectional title schemes and its contribution to housing provision in Gaborone. The methods that were used in this study included literature review on previous similar researches in order to gain sufficient knowledge on the subject. Questionnaires were administered using simple random sampling technique and interviews were also utilised. Finally physical record searches were conducted at the Deeds Office and Council Building Registry Office. The significance of carrying out this study was that it provides the government with information about the problems that are faced in sectional title tenure hence appropriate policy interventions can be designed. Since this study was the first of its kind in Botswana, property developers will benefit because the study reveals the groups that prefer residing in sectional title apartments hence the developers will know prior to development their probable target market. The results from the study revealed that the most common problems faced in development of sectional titles schemes was low buying rate and complex administrative procedures involved whereas failure to comply to work requirements by outsourced service providers and too much noise in multi residential dwellings are identified as the problems faced in the management of the schemes. The problems faced during registration included taking a long time to open a sectional title register due to lack of expertise by officers involved. The other result from the study shows that sectional title housing can contribute to housing delivery however; the current status in Gaborone is still low (not significant).The implication of the above results is that some changes needs to be introduced such that all the stakeholders can fully benefit from this tenure regime. Sensitizing the public that sectional title housing is a way forward to reducing the housing challenges and shortage; and making sectional titles cheaper as compared to conventional housing is one way through which sectional title housing can be promoted. Also policy interventions need to be made so as to make the rules and regulations flexible to addressing sectional title housing issues.
Keywords: Section, Sectional titles, Sectional titles development schemes, Housing, Gaborone, Botswana.
Introduction
Throughout the world, the growth in population and high urbanization rate has led to an acute shortage of housing for accommodation [1] Botswana is no exception as it also faces this problem especially in urban areas [2]. Shortage of housing accommodation is associated with increase in the price of land, shortage of serviced land and high buildings construction costs which have all made home ownership beyond the reach of the average family. Once more, the changing economic and social needs and the
requirements to make the optimum use of the available limited land had led to the growth of the multiunit development schemes broadly categorized as sectional title schemes [1]. In Botswana, sectional title ownership had been unknown because the common law which applies in the country did not recognize separate ownership of apartments in a building [3]. It was in the
year 1999 when the Sectional Titles Act was
This Act provides for the division of buildings into sections and common property, for the acquisition of separate ownership of sections coupled with joint ownership of common property [4].
As a result of a steady flow of the population from the rural areas to urban areas in Botswana in the past years, a scarcity of accommodation was being experienced in urban areas [3]. To alleviate the problem of shortage of accommodation in urban areas, the Botswana Housing Corporation was compelled to build a block of flats in some urban areas [3]. The flats were rented out to tenants instead of being sold and because of this practice, the much needed capital which could have been used in building more flats was locked up because tenants were not allowed by law to buy individual ownership of apartments in a building [3]. This then necessitated the government to pass a law enabling the Botswana Housing Corporation and other developers to sell the flats they have built and also for individuals to buy such flats. The Botswana Sectional Titles Act was enacted in 1999, the Regulations to
the Act were published on 23rd September
2002 and the Act commenced on 1st May
2003. The Act enabled landowners and developers to build blocks of flats or convert existing buildings into sections for the purpose of selling them.
Problem Statement
Ever since the inception of sectional title schemes in Botswana, a few sectional title scheme developments have been developed, registered and opened. Although some sectional units are up for sale, very few Batswana are buying into these schemes as many are still in the dark about this form of ownership. Many still believe that this tenure is not true ownership as they are accustomed to living in large plots where there are fewer restrictions as compared to sectional titles schemes. Again, one of the major problems with this form of ownership in Botswana is that since the Sectional Titles Act commenced, there has not been any reports that reflect how this form of property is performing and this has contributory impact to the reasons why Batswana are not buying into this form of ownership.
Objectives
In order to address the above mentioned problem, the following objectives guided this research:
To outline the challenges faced in the
development, registration and
management of sectional title schemes in Greater Gaborone.
To assess how sectional title schemes has
impacted on housing delivery in Gaborone.
Literature Review
Sectional ownership is a form of tenure where each resident household owns their individual unit but equally shares ownership and responsibility for the communal areas and facilities of the building such as elevators. Van der Merwe & Du Plessis [5] & Booysen [6] further pointed out that sectional title ownership consists of three elements which are individual ownership of a section, joint ownership of the common parts of the sectional title scheme and membership of the body corporate which governs the sectional title community. All
the three abovementioned elements
naturally have a reciprocal influence on each other hence they cannot be separated from one another; thus, they can only be dealt with as an entity [6].
The possible benefits of Sectional Title Development Scheme (STDS) as outlined by Serumula [3] are;
Reduced costs: to many people the cost of
maintaining the common areas, the costs incurred in maintaining the scheme
therefore are reduced unlike the
conventional housing where the sole owner is responsible for the maintenance of the property.
Provision of accommodation: these
schemes offer medium and high density developments that provide accommodation to all income levels in urban areas or cities.
Efficient construction and utilization of
accommodate multitudes of people since the land can be used for high rise developments.
Home ownership: sectional titles
ownership also gives accommodation seekers security of tenure, and satisfies their psychological need for home ownership, which is not fulfilled by renting a flat.
Protection against inflation: sectional title
schemes gives people the opportunity to purchase a unit rather than renting hence will protect people against increases in rentals [3]. Buying a unit also enables the purchaser to use the unit as security for loans borrowed in lending institutions such as banks.
According to Christensen & Wallace [7] there are five main common categories of disputes in condominium buildings. These categories of disputes are financial disputes, pet issues, management issues, personal interactions and architectural control and structural defects.
Financial disputes: one of the major
challenges faced by body corporate in providing efficient management and regular maintenance of buildings is lack of financial resources. Disputes that are related to financial resources involve issues such as maintenance of common property and common charges such as electricity charges for common property, property rates and taxes [7].
Architectural control and structural
defects: Disputes involving architectural control or physical improvements of individual units or common property such as repairs, renovations, painting and landscaping are also common in sectional
title schemes [8].
Common complaints by the unit owners
are that the management body is not doing a good job in servicing the schemes while
expensive maintenance fees or
contributions are imposed on them. Structural defects resulting in water seepage from the above unit to the unit below have been one of the most common disputes in Peninsular Malaysia and
Singapore [8]. The management body on the other hand also faces disputes with
unit owners who make physical
renovations on the units without prior permission from those in control.
In most jurisdictions pets are not allowed
in sectional title buildings. This is done in order to prevent problems such as noise from barking, health problems such as allergies and pollution on common property due to animal wastes and hair drops. However some residents of the schemes keep pets although it is against the management rules. This causes disputes between the owners of the
sections and between those in
management of the common property.
Disputes that may arise due to personal
interactions involve anti-social behaviours such as noise, vandalism and clash of personalities. These disputes may results in severe consequences such as death as it was recorded in Malaysia that a man was murdered by his neighbour after the former scolded the latter for dumping rubbish in front of his flat unit [8].
Some of the Methods of dealing with disputes in sectional title schemes are as follows:
Mediation: these are a non-binding
facilitated negotiation process [9]. It involves the use of impartial individuals who are trained in the technique of negotiation and facilitation. A mediator can either be chosen through disputing
parties mutually agreeing to the
appointment of a mediator or the disputing
parties can be referred to an ombudsman
who is legally recognized to provide the services of acting as a mediator. Mediation is an effective method as it is cheaper and less time consuming as compared to other methods such as litigation.
Negotiation: may be referred to as an
informal way of resolving a dispute. Mehnert defines negotiation as the process of making joint decisions when the
parties involved have different
agreement that is acceptable to all parties. This method can only be successful when all parties involved cooperate in agreeing to a negotiated settlement and if the settlement is made legally binding to all those that are involved.
Arbitration: according to Bennet [10]
arbitration is defined as the institution by which a third party decides on a dispute between two or more parties by exercising the jurisdictional mandate conferred upon him (the arbitrator). Arbitration is a suitable method to be used where mediation has failed. Arbitration is preferred over litigation because the proceedings are kept private and decision making process is made within a short period. Arbitration is also preferred because of the ability to choose an arbitrator by the disputing parties; this means that the expert in the field can be appointed to solve the dispute.
Research Design and Methodology
Study Design
This study utilized both the qualitative and quantitative research methods so as to address the aim and objectives of the study. Quantitative research uses numbers and statistical methods to derive explanations and to predict future outcomes [11] whereas qualitative research is based on a gathering of larger multitudes of data, usually verbal information, that are hoped to throw light on the research problem.
Population and Sample Size
The target population for the research was all the owners of sectional title units who bought their units from 2006 to March 2015 in Gaborone. The total numbers of the owners was 275 and this information was acquired from deeds Office in Gaborone. Also developers of residential sectional title developments were included as part of the study population and lastly the Deeds Office which provided a record about the registered sectional title development was consulted, thus it form part of the study population. From the total number of 275 owners, only 100 were chosen as the sample size using the simple random sampling at 90% confidence level plus 35% of the sample size added for the non-response and refusals.
Data Collection
Data that was used in this study was collected using three methods of data collection, and these methods were self-administered questionnaires, interviews and physical record searches at Deeds office.
Data Analysis
Statistical data obtained was presented in tables and charts which enabled easy interpretation of the results and extraction of meaning. An example of the expected graph was a graph showing the rate of growth or decrease of Sectional Titles Development Schemes in Gaborone. The charts, graphs and tables which showed the
frequency, percentage, cumulative
percentages were drawn using the SPSS software and Microsoft excel. Textual data gathered was summarized using content analysis in order to establish differing results and establish common meanings in identified themes. The data was thereafter interpreted, analysed and the conclusions presented.
Discussion of Results
The demographic data from the study showed that 50.7% of the owners of sectional title units were males while the remaining 49.3% are females. The results are not surprising as women empowerment is still going on in Botswana and a few empowerment practices like Abolition of Marital Power Act which gave men and women equal rights in property holding is one of the contributing factor which led to a small difference in terms of property ownership between males and females. Furthermore, 27.4% of the owners who responded to the questionnaire are aged between 24-35 years, 37% are aged between 35-44 years, 26% are aged between 45-54 years, and 8.2% fall in the category of 55-64 years while the remaining 1.4% is for the sectional owners who are aged 65 years and above. The results imply that the youth prefer buying sectional units because physically they can manage to stay in apartments as compared to the elderly.
shows that being married improves the household status of wealth hence married people have more leverage to buy sectional units compared to the singles. Also 58.9% of the respondents indicated that they are citizens of Botswana while the remaining 41.1% are foreigners. The results are not surprising because the government of Botswana through BHC only sells to citizens.
The respondents were requested to indicate the problems the encounter whilst living in a sectional title scheme, 38.4% stated that outsourced service providers fail to satisfy the work requirements, 31.5% stated that there is too much noise in sectional titles schemes whereas 23.3% stated that they face the problems of dispute over parking bays and the remaining 6.8% of the respondents said that they do not face any problems. Therefore it can be concluded that the most common problem is failure to meet work
requirements by outsourced service
providers like cleaning companies and refuse collection companies. Furthermore, the respondents were requested to indicate how the identified problems can be solved, and 25% said nothing can be done to solve the problem, 50% said they asked noise makers to reduce the noise and 12.5% said they reported to the police and the remaining 12.5% said they reported to property managers.
The respondents were also requested to indicate the problems they face in providing sectional title housing, 50% of the developers confirmed that they face the problem of low take up rate of sectional title schemes, 70% said the sectional title development is
coupled with complex administrative
procedures which turn out to be one of the major problems they face and 50% also confirmed that provision of sectional housing is expensive.
From the interview, it was confirmed that a total of 29 residential sectional title schemes have been registered with the Deeds Office since 2007 to March 2015 and from the registered schemes, 17 schemes has been developed by the government through parastatal organisations like BHC while the remaining 12 schemes have been developed
by private developers. Therefore it can be concluded that the government is more active in the provision of sectional title housing than private developers because it has contributed 58.6% to sectional housing compared to 41.1% contributed by the private developers. The developers were further asked if they see growth in development of sectional title schemes and 90% of the respondents were in agreement while 10% were pessimistic. It is not surprising that developers anticipate a further growth because with the estimated population of Gaborone being 1.26% more people will have to be housed and since there is a shortage of land to build stand free houses, sectional title schemes will be the only option to be utilized.
The developers were asked to indicate between Batswana and foreigners, who are the most involved in buying of sectional title schemes, 80% of the respondents said that foreigners are active in buying while 20% are convinced that Batswana are active in buying sectional title. The reason why Batswana may not be interested although they are given priority is that most Batswana are not used to living in congested areas, they prefer one large plot where traditional activities can be held and this is not the case with sectional title living.
The sectional title scheme owner were asked if sectional units satisfy their lifestyle needs, 75.3% of the owners said that sectional units satisfy their lifestyle needs, 24.7% said sectional units do not satisfy their lifestyle needs. The reason might be influencing some people not to enjoy living in multi residential such as too much noise, lack of privacy, disputes with other members over parking bays. Lastly they were asked what they think can be done to promote sectional title housing and 50% of the respondents believe that awareness programmes should be held in order to promote sectional housing and the remaining 50% believe that making sectional title housing cheaper will foster buying.
Conclusion and Recommendations
include among others complex administrative procedures that have to be followed until the sections have all been bought. The other significant problem that the researcher noted is that most developers complain about the low uptake rate/buying rate of sections which alternatively result in capital lock up which could have been used in developing other multi residential dwellings.
From this research, it is also picked up that the problems that are faced by the owners of sectional titles are:
Failure to comply with the work
requirements by outsourced service
providers.
Too much noise in apartments
Disputes over parking bays
Most of the occurring problems are related to ignorance of the rules and regulations governing each sectional scheme.
The problems that are faced during registration include:
Lack of expertise
Extended registration period
Some aspects of registration not catered
for in the Act e.g. non existence of sectional title schemes in tribal land. From the research, sectional title housing is a way through which challenges that impact on housing delivery such as shortage of land for housing can be addressed because more people are accommodated in smaller areas than is the cases with houses built on single plot. However it is worth noting that currently in Gaborone sectional title housing has not yet matured fully reflect a significant contribution towards housing delivery.
The conclusion that is also raised is that many respondents are not against sectional housing but rather insufficient education on sectional living, cultural preference and affordability are the major contributing factors which result in low take up rate of sectional title units. The other factors which contribute to slow growth of sectional title housing is that there is lack of expertise by different officers (e.g. conveyancers, deeds examiners) involved in the process of providing sectional housing.
Some of the recommendations of the study are:
Policy formulation: the government needs
to change the acts particularly the Sectional Title Act since it does not provide for the existence of sectional title schemes in tribal land and this is one area which can be introduced.
Computerization of records: the Deeds
Registry Office should computerize its records because the current status is not effective as it is cumbersome and time consuming thus making it very difficult for researchers and even the entire public to access such records.
The public should be sensitized about
sectional living as it is apparent from the findings of the study that most people are not fully educated about sectional title housing.
The use of alternative dispute resolution
technique such as mediation to solve problems faced by occupiers of sectional title schemes should be used. Qualified property managers should be involved in the running of daily activities of the
schemes because they are more
knowledgeable about sectional title
housing.
References
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