Sectional Title News


Sep

09

2019
Creating parking bays in your scheme

Creating parking bays in your scheme

By Ané de Klerk Record shows that the number of registered vehicles in South Africa has doubled in the past 20 years. With more than 12 million registered vehicles on our roads today, it comes as no surprise that some schemes built a number of years ago, quite simply do not sufficiently cater for the amount of vehicles its occupiers have today. If your body…

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Jul

25

2018
Unpacking special resolutions

Unpacking special resolutions

In sectional title schemes, there are many different types of decisions that can be taken, and in each case, the requirements for such a decision or vote is different and often more complicated than the prior resolution. It is important in order for the proper administration and management of the scheme that the requirements for taking decisions are known, understood and applied. This article looks…

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Jul

25

2018
What you need to know about replacement trustees

What you need to know about replacement trustees

By Paddocks It is a fact that owners can appoint another person as a proxy to attend general meetings. In contrast, trustees cannot appoint a proxy to attend trustee meetings on their behalf. It is not unusual for trustees to incorrectly assume that if they are not able to attend a meeting, they are entitled to appoint someone else to do so in their place….

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Sep

19

2017
Agent accreditation in community schemes

Agent accreditation in community schemes

By Zerlinda van der Merwe (Paddocks) In our consulting department, we are often instructed to review the governance documentation of community schemes, especially in light of the changes introduced by the Sectional Titles Schemes Management Act 8 of 2011, and the Community Schemes Ombud Service Act 9 of 2011. When undertaking these instructions, we often advise our clients, as scheme executives, managing agents and members,…

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Feb

22

2017
The two Body Corporate funds

The two Body Corporate funds

The Sectional Titles Schemes Management Act 8 of 2011 (“the STSMA”) and the Prescribed Management Rules (“PMRs”) contained in Annexure 1 to the Regulations made thereunder provide for bodies corporate to have two separate funds, a reserve and administrative fund. This article will distinguish between these two funds, and set out what each fund must be used for. 1. Reserve fund In terms of section…

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Feb

22

2017
Meetings – quorum and voting

Meetings – quorum and voting

This article takes a look at the quorum requirements and voting procedures at annual general meetings (“AGMs”) and special general meetings (“SGMs”), as provided for by the Sectional Titles Schemes Management Act 8 of 2011 (“the STSMA”) and Prescribed Management Rules (“PMRs”). This article takes a look at the quorum requirements and voting procedures at annual general meetings (“AGMs”) and special general meetings (“SGMs”), as…

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Jan

08

2016
Three ways for trustees to take resolutions

Three ways for trustees to take resolutions

By Anton Kelly (Paddocks) Trustees, as the executive of the body corporate, are tasked with the day-to-day management of the scheme. This means that they need to meet regularly to discuss governance issues and take resolutions. As trustees are mostly volunteers who offer their time for free and who have their own families and jobs to consider, it is often difficult for trustees to meet…

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Apr

13

2015
How to protect your sectional title investment from the number one cause of devaluation

How to protect your sectional title investment from the number one cause of devaluation

Sectional title owners are often lulled into a false sense of security, believing that they can safely hand off all management, maintenance and repair responsibilities to their Body Corporate with no repercussions. According to Tony Clarke, Managing Director of the Rawson Property Group, this kind of disinterest from owners, especially common with buy-to-let investors, has seen the deterioration and subsequent devaluation of many sectional title…

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Apr

13

2015
The Tenant-landlord-body corporate triangle

The Tenant-landlord-body corporate triangle

Many, many sectional titles units are bought as investments and the sections occupied by tenants – I wonder what the proportion is? Normally, the lease of a property gives rise to two relationships: the relationship between the landlord and the tenant, and the relationship between the tenant and the leased property. However, when the lease is of sectional title property, a third relationship exists: the…

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Apr

13

2015
Keeping the lights on in sectional title schemes

Keeping the lights on in sectional title schemes

Generators in Sectional Title schemes With no relief from load shedding and rolling blackouts on the near horizon, an increasing number of sectional title schemes are making plans to install generators, solar panels and other equipment to keep the lights on. Many are also having to look at additional tanks and booster pumps to secure a steady supply of water when council pumping stations are…

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