Tag: Sectional Title


Aug

23

2017
When the Body Corporate must pay for my repairs

When the Body Corporate must pay for my repairs

By Anton Kelly Owners in sectional title schemes often think that the body corporate is automatically responsible to repair damage to their section if the damage is the result of some failure of the common property. The basic maintenance and repair responsibilities are set out in the Sectional Titles Schemes Management Act “the Act” in Section 3, Functions of the body corporate and Section 13,…

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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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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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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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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
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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