Fidelity insurance is a crucial safeguard for bodies corporate managing sectional title buildings in South Africa. It protects the financial health of the scheme and shields members from the potentially devastating consequences of theft or mismanagement of funds. Let’s look at why this type of insurance is essential, what it protects against, and the procedure to obtain it. Why fidelity insurance...

A recent ruling by the Johannesburg High Court has brought some clarity for sectional title schemes, especially on collecting overdue levies and recovering legal costs when members do not pay. The case, SS Glen High Body Corporate v. M. Kruger NO (2023/055133), addressed issues many schemes face: can they recover legal fees incurred when chasing unpaid levies? Why this matters for...

For trustees and owners in sectional title schemes, effective maintenance planning is essential to ensure the long-term value of the property and prevent costly repairs. Maintenance isn't just a responsibility – it’s a legal obligation under the Sectional Titles Schemes Management Act, which requires the establishment of a 10-year maintenance, repair, and replacement plan. Why is maintenance planning important? It preserves...

In sectional title schemes, disputes over unpaid levies are all too common, leading to a big question: Can bodies corporate cut off the electricity of owners who fall behind on payments? Earlier this year, the Gauteng High Court tackled this issue in two cases, offering insight into the legal complexities involved. A closer look In 2022, a case came before the court...

Disputes often happen in sectional title schemes because people share spaces, costs, and infrastructure. These disagreements can involve various individuals such as tenants, property owners, trustees, and managing agents. The main two types of disputes are: Financial and Administrative Issues: These can include problems with bookkeeping, audits, taxes, and legal matters. Physical Issues: These involve maintenance, improvements, alterations, and extensions....