We all know times are tough, and the reality is that some people cannot afford to pay their levies. They should sell, and as quickly as possible, but often they hold on too long and run up major debt to the body corporate in the form of unpaid levies. Once the legal fees are added,…
It is often hard to get sectional owners to attend meetings and for the body corporate to get a quorum of owners present or represented. The normal quorum requirement is one third of all owners’ voting values, but it is not unusual for general meetings to be automatically adjourned for a week because there is…
Sectional owners frequently complain that trustees spend scheme money on expenses that are not covered by the body corporate’s approved budgets, sometimes on unnecessary expenses, or that they spend more than the budgeted amounts. What can owners do when this happens? The law requires that trustees must spend the body corporate’s money in accordance with…
So you live in a sectional title unit, and suddenly you get a message from the managing agent or trustees saying your family is making too much noise. The message is headed “Final Warning” and says you have broken the scheme’s rules. If it happens again, you will be fined. The complaint may relate to…
Sectional Title Scheme Rules under the New Legislation. In the light of the new sectional titles schemes management legislation, I have re-examined the subject of sectional title body corporate rules. First I look at the four types of rules a developer or body corporate can make. Then I examine the law and other legal principles…
A sectional title body corporate is responsible for management and administration of its scheme. It must ensure that the provisions of the Sectional Titles Schemes Management Act (the Act) are complied with and it must enforce the provisions of its management and conduct rules. These responsibilities must be carried out in the best interests of…
The Provincial Ombud for the Western, Eastern and Northern Cape, Maletsatsi Wotini, opened the proceedings and welcomed those present. Sindisiwe Ngxongo, the National Department of Human Settlements’ Acting Director General: Chief Operational Officer confirmed that the meeting was an attempt to address the reputational issues that have arisen and restore confidence in the Community Schemes…
Choosing a portfolio manager for your scheme can often be a difficult task. Not only do you want to find a manager or management firm that can promptly and effectively deal with any issues that may arise, but you also want their services to be as good and as affordable as possible. To help you…
The Community Scheme Ombud Service Act, No. 9 of 2011 (“the CSOS Act”) came into force on 7 October 2016. In terms of the CSOS Act, “community schemes” include: 1. Sectional titles development schemes in terms of the Sectional Titles Act (Act 95 of 1986); 2. Share block companies governed by the Share Blocks Control…
Historically there has been some confusion as to the legal nature of sectional title scheme rules. The academic thought leaders, in the law of sectional titles in South Africa (Professors CG van der Merwe and GJ Pienaar) agree that rules made by bodies corporate are “the product of the legislative power of an autonomous statutory…
In this video tutorial we introduce you to Zerlinda van der Merwe, who we have welcomed to the Paddocks team as a Specialist Community Schemes Consultant. Article reference: Paddocks Press: Volume 10, Issue 3, Page 1. As a Community Member of Paddocks Club not only do you receive a Video Tutorial weekly, you also have…
The Supreme Court of Appeal (“SCA”) recently handed down an important judgment in regard to the nature of a homeowners association’s right to prevent transfer when an owner is insolvent and unable to pay outstanding levies.The full citation of the case is: Willow Waters Homeowners Association (Pty) Ltd v Koka N.O. and Others (768/2013) [2014]…
The Companies Act, 71 of 2008 (“the Act”) has been in operation since 1 May 2011. It provides for a two–year grace period for existing companies to update their governance documents. During this period most of the provisions of the pre-existing articles of association continued to be valid, even if they were not in accordance…
The week after Graham Paddock released the Executives Meeting Video Tutorial to the Paddocks Club Community Members he released the above Video Tutorial. In this video Graham gives three follow ups regarding the Community Scheme Ombud Service. The Guide to CSOS Applications for Dispute Resolution Paddocks has designed a free, online guide to assist you…
It is not unusual for well-managed sectional title bodies corporate to accumulate considerable amounts of money. Particularly where the owners comply with the requirements of the Sectional Titles Act,1986, and budget on an accrual basis for the costs of future maintenance and repairs, they will set aside substantial amounts for future painting, re-surfacing, lift repairs…
