Latest News


Feb

24

2016
Can a trustee also be appointed as a caretaker?

Can a trustee also be appointed as a caretaker?

It is important to note that only trustees who are owners can be appointed as caretakers due to the disqualification contained in Prescribed Management Rule (“PMR”) 5(b). Trustees are empowered to employ a caretaker. In terms of section 38(a) of the Sectional Titles Act 95 of 1986 (“the Act”), the body corporate has the power to appoint such agents and employees as it may deem…

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Feb

24

2016
The right to privacy

The right to privacy

One of the contributing factors to the increasing popularity of living in a sectional title scheme is the security which these schemes offer. The costs of installing security and other protective and preventative measures is a shared or common expense between the scheme’s members. As such, many schemes are able to afford to secure their boundaries with electric fencing, high tech security cameras, on site…

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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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Mar

25

2015
Duties of Managing Agents

Duties of Managing Agents

  By Anton Kelly (Paddocks) Managing agents get a lot of criticism from owners. No doubt some is justified – we all make mistakes and sometimes have gaps in our expert knowledge. To manage owners’ expectations of what their managing agent should be doing and how, we should establish what exactly a managing agent’s job is instead of criticising how well any particular managing agent does…

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Sep

07

2014
Can a Body Corporate Lend Money to its Employees?

Can a Body Corporate Lend Money to its Employees?

By Anton Kelly This question comes up repeatedly in our discussion forums. It is difficult to answer because neither the Sectional Titles Act nor the prescribed rules make a definite provision one way or the other. There are strong indications that a body corporate can’t lend money to its employees. The functions of the body corporate are specified in detail in section 37. They cover…

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Sep

07

2014
Keeping a pet in a complex – the rules?

Keeping a pet in a complex – the rules?

The Prescribed Conduct Rule 1 in Annexure 9 of the Regulations provides that an owner or occupier of a section shall not, without the consent in writing of the trustees, which approval may not unreasonably be withheld, keep any animal, reptile or bird in a section or on the common property. When granting such approval, the trustees may prescribe any reasonable condition. The trustees may…

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Aug

21

2014
Reduction in the Prescribed Rate of Interest

Reduction in the Prescribed Rate of Interest

From 1 August 2014 the “official” rate of interest on overdue debts will be reduced from 15,5% to 9% per annum. Prescribed management rule (“PMR”) 31(6) allows the trustees to charge interest on arrear amounts due to a body corporate at such rate as they may determine from time to time. But there is no part of the Sectional Titles Act, 1986 or any prescribed…

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