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February 2014 (Volume 9, Issue 2)
Dear Paddocks Press Fan,
Last Saturday I spent an hour answering sectional title owners' questions at a function hosted by one of our Managing Agent clients, and I was struck by the high level of questions and the general familiarity with scheme management issues. Whatever we are all doing - it is definitely working. I have no doubt that the average sectional title owner is more informed and educated, by far, than he or she was in the past. It is both a challenge and a pleasure to see.

In this month's edition of Paddocks Press:
1. Anton's article on Invalid Trustee Consents;
2. My report on the settlement of the Debt Collectors Act issue in regard to managing agency;
3. Jen's piece on what you need to know about Reserve Funds; and
4. The usual Q&A extracts from Paddocks Club.

Good luck for the financial year end(s).
Kind regards,

P.S. Click here to see the dates for the upcoming courses.
Invalid Trustee Consent
By Anton Kelly
In our experience, most permissions given by trustees are not valid. The Sectional Titles Act, 1986 (“the Act”) and the prescribed rules specify that trustee consent is required for several processes and that consent must be in writing. These written consents must be signed by two trustees or one trustee and the managing agent, but are dependent on a trustee resolution authorising the consent.

In this article, Anton describes trustee consent in terms of Prescribed management rule 27. (reading time ± 2 min)
Read the full article...
Debt Collectors Act
Application of the Debt Collectors Act to Managing Agency
By Graham Paddock
For some time there has been confusion as to whether managing agents must register with the Council for Debt Collectors and operate a separate trust account under the provisions of the Debt Collectors Act, 114 of 1998 ("the DCA"), in addition to the trust account they must operate under section 32 of the Estate Agency Affairs Act, 112 of 1976 ("the EAAA").

In this article, Graham informs readers of the recent settlement of this matter. (reading time ± 1 min)
Read the full article...
Thinking Inside the Box - Blog post
Reserve Funds – What You Need to Know
By Jennifer Paddock
Once the Sectional Titles Schemes Management Act comes into force Reserve Funds for bodies corporate will be mandatory and the Minister will prescribe mandatory minimum amounts. This means that the lax attitude most bodies corporate in South Africa have been taking towards reserve funds will no longer be an option.

In this article, Jennifer explains what Reserve Funds and Reserve Fund Planning is and provides 4 steps to Developing a Reserve Fund Plan. (reading time ± 3 min)
Read the full article...
Questions and Answers
Monthly Q&A
By The Paddocks Club Team

  • Maintenance of geyser on the common property
  • Can trustees force owners to upgrade window frames? (reading time ± 2 min)
Read the full article...

Upcoming Training
Short courses:
UCT Sectional Title Meetings course
Registrations close: 14 March 2014
Teaches students to control and manage meetings with clarity and confidence through acquiring a broad and thorough understanding of the law of sectional title meetings.
Find out more about this course.
UCT Sectional Title Sales and Transactions course
Registrations close: 14 March 2014
Students will learn to deal with the different aspects of the sales process, as well as consumer protection provisions and how to monitor conveyancing processes.
Find out more about this course.
Sectional Title Trustee Training course
Registrations close: 14 March 2014
Students will be introduced to the administrative, financial, legal and physical aspects of sectional title scheme management and the trustees’ role therein.
Find out more about this course.
Paddocks Free Basics of Sectional Titles course
Registrations close: 30 May 2014
Students will gain a broad overview of the applicable terms and concepts in sectional titles.
Find out more about this course.
UCT Sectional Title Scheme Management course
Registrations close: 6 June 2014
Be equipped to manage sectional title schemes according to the legal aspects of scheme management with this benchmark course.
Find out more about this course.
Home Owners' Association Management course
Registrations close: 25 July 2014
Learn all about the legal aspects of home owners' association (HOA) management.
Find out more about this course.
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