21 Nov How to deal with improvements in sectional title schemes

The Sectional Title Schemes Management Act (STSMA) provides clear instructions as to how improvements should be handled in sectional title schemes. In the blog post below, we detail below some guidelines on how to deal with improvements in your unit or exclusive use area, and improvements on common property and the requirements for making such improvements.

Improvement of your unit

Owners are allowed to make alterations to their sections but there are conditions to this. The Sectional Titles Act provides that the body corporate:

• give consent for the structure or building improvement if they are satisfied that it does not require compliance.
• prescribe any reasonable condition regarding the use or appearance of the structure or building improvement; and
• withdraw any consent if the member or other occupier of a section breaches any such condition.

Approval required: Ordinary resolution

An ordinary resolution is passed by, what is referred to as, a ‘simple majority’ of members, meaning that the votes ‘for’ must equate to more than 50% of the total votes cast by each member’s voting rights.

Improvement of your exclusive use area

An owner who has the right of exclusive use may opt to improve the area by adding a structure or making a building improvement to the area.

Approval required: Ordinary resolution

All that is required to authorise the alteration to the exclusive use area is the consent of the body corporate by ordinary resolution.

Improvement on common property

Regulation 29 (2) makes provision for the body corporate proposing “to make alterations or improvements to the common property that are reasonably necessary; provided that no such proposal may be implemented until all members are given at least 30 days written notice with details of:

1. the estimated costs associated with the proposed alterations or improvements;
2. details of how the body corporate intends to meet the costs, including details of any special contributions or loans by the body corporate that will be required for this purpose; and 
3. a motivation for the proposal including drawings of the proposed alterations or improvements showing their effect and a motivation of the need for them; 

What approval is required: Special resolution

If a member requests a general meeting in writing to the body corporate to discuss the proposal, the proposal must not be implemented unless it is approved, with or without amendment, by a special resolution adopted at a general meeting.

Special resolutions are often needed for more important decisions or decisions affecting the constitution of a company. Special resolutions require at least 75% of shareholders to agree on a decision.

In conclusion

In terms of section 37(1)(j) of the Sectional Titles Act 95 of 1986, the body corporate is obliged to maintain and repair the common property and the trustees do not need the permission of the owners in general meeting before they decide to do so.

However, they are not entitled to effect improvements to the common property without first consulting owners. In terms of prescribed management rule 33(1), a unanimous resolution must be obtained before a luxurious improvement (deemed necessary) to the common property can be affected. In terms of PMR 33(2), a special resolution is required to authorize a non-luxurious improvement (not reasonably necessary), or its removal, should any owner request a special general meeting to discuss the trustees’ proposal.

Unanimous resolution: The requirement for the unanimous resolution is that it should been have passed unanimously by all the members of the body corporate at a meeting at which at least 80% (calculated both in value and in number) of the votes of all the members of a body corporate are present or represented.