Latest News


Jul

24

2014
AMENDING THE RULES FOR LEVIES DISPENSATION

AMENDING THE RULES FOR LEVIES DISPENSATION

Section 32(4) of the Sectional Titles Act 95 0f 1986 (as revised): Which Rules did the Legislature have in Mind? Standard Management Rule 31 (1) prescribes the ‘participation quota standard’ for determination of the value of owners’ votes or the apportionment of their financial liabilities, unless a different formula should have been introduced in terms of Section 32(4). Section 32(4) allows a developer, or later the…

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Jun

06

2014
Claims Ratio in a nutshell

Claims Ratio in a nutshell

It is important for Managing Agents and Trustees to understand the concept of claims ratio and the effect it has on the renewal of policies. A claims ratio (or loss ratio) on a buildings policy is the ratio of claims to premiums; in other words, the percentage of claims to premium over a given period. A loss ratio for the year, say 55%, means that…

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May

29

2014
Trustees and decisions…

Trustees and decisions…

The Sectional Titles Act, 1986, provides that the functions and powers of the body corporate are performed and exercised by trustees. The practical necessity for having an executive committee to make the day to day decisions of sectional title co-owners is borne out by the frequent complaint that owners do not attend meetings. If owners are reluctant to attend the AGM, where vital decisions for the coming…

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May

04

2014
Community Scheme Ombud Service – An Overview

Community Scheme Ombud Service – An Overview

An overview of the ‘CSOS’ by Prof. Graham Paddock, lead co-author of the pending legislation: The Community Scheme Ombud Service Act, No. 9 of 2011 (“the Act”) will come into force on a date to be fixed by the President by proclamation in the Gazette. In terms of the Act the term “community schemes” includes: 1. Sectional titles development schemes in terms of the Sectional Titles Act (Act 95 of…

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May

01

2014
Sectional Title: Look out for any right to extend

Sectional Title: Look out for any right to extend

When a new sectional title (ST) complex is launched, the developer can elect to build fewer units than may be allowed on the site, and reserve the right to develop the rest at a later stage. This is known as a “Section 25 right to extend”, and those buying homes in both new and established sectional title schemes should always check, before signing an agreement…

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May

01

2014
Exclusive use – the technicalities and what they mean for owners

Exclusive use – the technicalities and what they mean for owners

The concept of exclusive use in sectional title schemes is not always clearly understood and it should be, for three very good reasons. Firstly it is an arrangement that gives rise to legal rights that are associated with the ownership of the sectional property and are passed on to subsequent owners of that property; second there are specific things that the owner who holds the…

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Apr

14

2014
Reserve Funds – What You Need to Know

Reserve Funds – What You Need to Know

By Jennifer Paddock (as authorised and extracted from a post dated February 5, 2014 on the www.mystrata.com blog. 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 amount. This means that the lax attitude most bodies corporate in South Africa have been taking towards reserve funds will no longer…

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Apr

14

2014
PARAMETERS / LIMITATIONS OF MEMBERS’ POWERS TO INSTRUCT TRUSTEES

PARAMETERS / LIMITATIONS OF MEMBERS’ POWERS TO INSTRUCT TRUSTEES

Article by Tertius Maree (Attorneys) as published in MCS Courier Issue No 45 December 2013  May owners issue directives to trustees regarding pets? May members impose restrictions regarding maintenance? Is it possible for trustees to establish a ‘policy’ regarding pets? May owners’ actually instruct trustees as to how a ‘pets policy’ must be implemented? In terms of section 39(1) of the Act the owners may…

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Apr

14

2014
BUILDING ALTERATIONS BY OWNERS

BUILDING ALTERATIONS BY OWNERS

This article is upon a seminar presented by Tertius Maree (Tertius Maree Associates) to STASWEST during March 2014 When dealing with alterations to the common property by owners of sections in a sectional title scheme, there are three important points to keep in mind:Alterations or improvements by owners do not equate to improvements to the common property effected by the body corporate, even if such ‘private’…

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Mar

27

2014
Rules must be attached to lease agreement

Rules must be attached to lease agreement

The amendments to the Rental Housing Act 50 of 1999 (RHA) once signed into law, most likely before 7 May 2014, will make it compulsory for a copy of the house rules applicable to the leased dwelling must be attached as an annexure to the lease. The RHA defines “House Rules” as the rules in relation to the control, management, administration, use and enjoyment of…

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