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...
The Sectional Title Schemes Management Act (STSMA) brought many new compliance requirements for sectional title schemes. Although some of these are from the old legislation prior to 2016, most are new and require more frequent assessment. Community Schemes Ombud Service (CSOS) All sectional title schemes are obliged to be registered with CSOS and each owner in a scheme must contribute a monthly...
Changes to the Sectional Titles Schemes Management Act 8 of 2011 (STSMA) on 7 October 2016 made fidelity insurance compulsory for bodies corporate. This means that the body corporate must insure itself against the potential loss of its funds by way of fraudulent or dishonest conduct by the trustees, managing agent or anybody who has access to these funds. Before the...