Oobarometer Reveals Strong Shift Towards Sectional Title Property Investment

New data from ooba Home Loans’ oobarometer Q4 2025 reveals that 66% of individual buy-to-let investors applying for home loans last year opted for sectional-title homes, underscoring their appeal as both lifestyle and investment assets.

With demand rising steadily among investors and owner-occupiers over the past five years, interest in sectional-title living has brought renewed focus on ownership rights, community governance and the effective management of disputes within shared property developments.

Grant Smee, chief executive officer of Only Realty Property Group, says that while sectional-title schemes offer buyers affordability and security, disputes can arise in shared living environments if expectations are not well managed.

“Sectional-title ownership works best when everyone understands their role and responsibilities,” says Smee. “Problems typically arise when communication breaks down or when owners aren’t fully aware of the rules that govern their scheme.”

Understanding owners’ rights

While owners have responsibilities to maintain their individual sections, Smee says they also have clearly defined rights under the Sectional Titles Schemes Management Act. These include:

• The right to well-maintained communal areas, funded through levies.
• The right to challenge unlawful or incorrect charges and claim reimbursement where appropriate.
• The right to access body corporate records, including budgets, financial statements and meeting minutes.

“Owners are often aware of what they have to pay, but not always aware of what they are entitled to,” says Smee. “Knowing your rights makes it much easier to resolve disputes calmly and quickly.”

Common disputes in sectional-title schemes

Disputes within sectional-title schemes tend to follow familiar patterns, Smee says, with the most common areas of conflict being:

• Maintenance and repairs, especially where it is unclear whether the issue relates to common property or a private section.
• Financial disagreements, such as levy increases, special levies, reserve fund contributions or concerns around how funds are managed.
• Rule enforcement, including noise complaints, pets, parking, short-term letting and use of shared spaces.
• Boundary-wall disputes between neighbouring property owners.
• Trustee conduct, where owners feel decisions are inconsistent or outside the trustees’ authority.

“These are not unusual problems,” Smee explains. “In most cases, they are manageable if they are addressed early and through the correct channels.”

Best practice for dispute resolution

“Many disputes can be resolved internally if both parties are willing to engage constructively,” says Smee. “Trustees must act in good faith and in the best interests of the body corporate, and owners should allow the internal process to work before escalating the matter.”

Smee says the best approach follows this format:

Communication and internal resolution

“The first step in resolving any sectional-title dispute should be direct engagement,” advises Smee. “Owners must submit their concerns in writing to the trustees or managing agent, outlining the issue and referencing the relevant management or conduct rules.”

He says that trustees also play a vital role in preventing disputes: “Transparent communication, accurate record-keeping and consistent enforcement of rules help build trust and reduce friction within schemes. In certain instances, establishing a dispute-resolution committee consisting of impartial owners can be beneficial, as they can objectively review the situation and make a recommendation.”

Involving the CSOS

If internal engagement fails, Smee says that the Community Schemes Ombud Service (CSOS) can resolve issues such as:

• Levy disputes and special levies
• Maintenance failures or misuse of scheme funds
• Enforcement of scheme rules
• Allegations of improper trustee conduct

“CSOS is the practical next step for smaller or straightforward disputes,” Smee explains. “Its rulings are legally binding, and the process is generally faster and more affordable than litigation.”

Involving the courts

A recent Supreme Court of Appeal ruling confirmed that owners and bodies corporate are not required to exhaust CSOS processes before approaching the courts. This is relevant for more complex or high-value disputes.

“The ruling gives owners more flexibility,” says Smee. “While court action should never be the first choice because of costs and time, it’s important to know that CSOS is not the only route available.”

Tips for dispute resolution

According to Smee, the most effective dispute-resolution strategies focus on practicality rather than confrontation. These include:

• Mediation, either through CSOS or private mediators, to reach mutually acceptable outcomes.
• Reviewing governing documents to ensure disputes are addressed in line with approved rules.
• Seeking legal advice early in matters involving governance, levies or trustee misconduct.
• Amending scheme rules, where necessary, to prevent recurring disputes.

“With sectional-title ownership continuing to grow, understanding the rules and avenues for disputes is vital when investing,” Smee concludes. “The support structures are there; owners just need to know how and when to use them.”