Published: 12 May 2026
Common property is one of the most valuable assets owned collectively by a Sectional Title Scheme. Trustees are often approached with proposals to lease or even sell portions of the common property in exchange for financial benefit to the scheme.
These proposals may involve cellphone towers, coffee shops, storage areas, parking bays or even portions of unused garden space. While these opportunities may generate valuable income, Trustees must ensure that the correct legal processes and approvals are obtained before granting any rights over common property.
This article explains the difference between the letting and alienation of common property, the resolutions required, and some practical examples commonly encountered in sectional title schemes.
These proposals may involve cellphone towers, coffee shops, storage areas, parking bays or even portions of unused garden space. While these opportunities may generate valuable income, Trustees must ensure that the correct legal processes and approvals are obtained before granting any rights over common property.
This article explains the difference between the letting and alienation of common property, the resolutions required, and some practical examples commonly encountered in sectional title schemes.
1. Back to Basics: What is Common Property?
Common property refers to all areas of the scheme not owned by an individual owner, for example:
The Body Corporate controls this property on behalf of all owners.
Sometimes these areas like gardens, parking bays, or patios may be allocated to a specific owner — these are called exclusive use areas.
2. The Difference Between Letting & Alienation
A. Letting (Leasing) Common Property
This means renting out a portion of common property.
The key issue is not what is being installed/done — it’s whether an outsider is obtaining rights over common property.
If a third party is making money from your common property, Trustees should immediately stop and ask what approval is legally required.
B. Alienation of Common Property
This means selling or permanently transferring ownership of common property.
Alienation usually happens where a portion of common property has little value to the scheme in its current form, but value to someone else.
Alienation means the Body Corporate permanently gives up ownership — this is very different from merely allowing someone to use the area.
These require different approvals and have very different consequences.
3. Letting Common Property: What the Law Allows
3.1 Short-Term Letting (Less than 10 years)
Is governed by Section 4(h) of the STSMA (Act 8 of 2011), requires a special resolution and can ONLY be to an owner or occupier.
Examples:
⚠️Important:
If the person moves out or sells, the lease must end automatically
3.2 Long-Term Letting (10 Years or More)
Is governed by: Section 5(1)(a) (STSMA) + Section 17 of the ST Act, is considered long term if it is 10 years or longer, or renewable to exceed 10 years or for someone’s lifetime, this lease requires a unanimous resolution and in addition the written consent of a holder of a right of extension.
3.3 Letting to Outsiders (Non-Owners / Non-Occupiers)
Letting to outsiders will in most cases require a unanimous resolution, regardless of the lease duration.
Examples:
A unanimous resolution may either be obtained in writing from all owners (round robin), or at a properly convened meeting where at least 80% of the owners are present or represented, and all votes cast are in favour of the resolution.
4. Alienation of Common Property (Selling It)
Is governed by: Section 5(1)(a) + Section 17 of the Act requires a unanimous resolution, the written consent of a holder of a right of extension, compliance with land laws (subdivision, registration, etc.) and possible involvement of the Surveyor-General and Deeds Office.
This is far more serious than letting.
Examples:
⚠️Important:
Once sold, the Body Corporate loses control permanently
5. Practical Summary
Common property refers to all areas of the scheme not owned by an individual owner, for example:
- Gardens
- Parking bays (unallocated)
- Roof space
- Guard houses / clubhouses
- Passages and shared facilities
The Body Corporate controls this property on behalf of all owners.
Sometimes these areas like gardens, parking bays, or patios may be allocated to a specific owner — these are called exclusive use areas.
2. The Difference Between Letting & Alienation
A. Letting (Leasing) Common Property
This means renting out a portion of common property.
The key issue is not what is being installed/done — it’s whether an outsider is obtaining rights over common property.
If a third party is making money from your common property, Trustees should immediately stop and ask what approval is legally required.
B. Alienation of Common Property
This means selling or permanently transferring ownership of common property.
Alienation usually happens where a portion of common property has little value to the scheme in its current form, but value to someone else.
Alienation means the Body Corporate permanently gives up ownership — this is very different from merely allowing someone to use the area.
These require different approvals and have very different consequences.
3. Letting Common Property: What the Law Allows
3.1 Short-Term Letting (Less than 10 years)
Is governed by Section 4(h) of the STSMA (Act 8 of 2011), requires a special resolution and can ONLY be to an owner or occupier.
Examples:
- Renting a garden space to an owner
- Allocating an extra parking bay to a resident
- Allowing an occupier to use a storeroom for a fee
⚠️Important:
If the person moves out or sells, the lease must end automatically
3.2 Long-Term Letting (10 Years or More)
Is governed by: Section 5(1)(a) (STSMA) + Section 17 of the ST Act, is considered long term if it is 10 years or longer, or renewable to exceed 10 years or for someone’s lifetime, this lease requires a unanimous resolution and in addition the written consent of a holder of a right of extension.
3.3 Letting to Outsiders (Non-Owners / Non-Occupiers)
Letting to outsiders will in most cases require a unanimous resolution, regardless of the lease duration.
Examples:
- Leasing roof space to a cell phone company
- Leasing land for a coffee shop, kiosk or laundry
A unanimous resolution may either be obtained in writing from all owners (round robin), or at a properly convened meeting where at least 80% of the owners are present or represented, and all votes cast are in favour of the resolution.
4. Alienation of Common Property (Selling It)
Is governed by: Section 5(1)(a) + Section 17 of the Act requires a unanimous resolution, the written consent of a holder of a right of extension, compliance with land laws (subdivision, registration, etc.) and possible involvement of the Surveyor-General and Deeds Office.
This is far more serious than letting.
Examples:
- Selling part of the garden to an owner
- Converting common property into a new section
- Disposing of unused land
⚠️Important:
Once sold, the Body Corporate loses control permanently
5. Practical Summary
6. Important Rules to Remember
The Trustees & the Body Corporate cannot act alone - the appropriate owner approval is required.
Trustees should also ensure that the area concerned is not already subject to registered or rule-created exclusive use rights.
Trustees should always check:
Even where the required resolution can legally be obtained, Trustees should still carefully consider the broader impact on the scheme, including security, aesthetics, parking, noise, owner expectations and long-term operational implications. A proposal that is financially attractive may not always be in the best interests of the scheme as a whole.
Risks & Common Mistakes:
CONCLUSION
Proper management of common property can create valuable opportunities for sectional title schemes, including additional income streams, and better utilisation of underused areas. However, Trustees must ensure that the correct resolutions are obtained and that the long-term interests of the scheme are carefully considered before granting rights over common property.
Short-term use of common property by residents is relatively easy to approve, but the moment it becomes long-term, involves outsiders, or affects ownership, the law generally requires a significantly higher level of owner approval, often by unanimous resolution. The more permanent the decision, the higher the level of approval required.
The Trustees & the Body Corporate cannot act alone - the appropriate owner approval is required.
Trustees should also ensure that the area concerned is not already subject to registered or rule-created exclusive use rights.
Trustees should always check:
- The Scheme rules
- Whether bondholder or conveyancing requirements apply
- The impact on owners
- Any Exclusive use rights in terms of the plans or rules
Even where the required resolution can legally be obtained, Trustees should still carefully consider the broader impact on the scheme, including security, aesthetics, parking, noise, owner expectations and long-term operational implications. A proposal that is financially attractive may not always be in the best interests of the scheme as a whole.
Risks & Common Mistakes:
- Renting to outsiders without unanimous approval
- Entering into long-term agreements without proper authority
- Forgetting leases must end when an occupier leaves
- Not checking for registered exclusive use rights either in terms of section 27 of the ST Act or created in the rules of the scheme
CONCLUSION
Proper management of common property can create valuable opportunities for sectional title schemes, including additional income streams, and better utilisation of underused areas. However, Trustees must ensure that the correct resolutions are obtained and that the long-term interests of the scheme are carefully considered before granting rights over common property.
Short-term use of common property by residents is relatively easy to approve, but the moment it becomes long-term, involves outsiders, or affects ownership, the law generally requires a significantly higher level of owner approval, often by unanimous resolution. The more permanent the decision, the higher the level of approval required.
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