Buying property in a community scheme remains a popular choice for many buyers whether they are first-time buyers or established buyers. Community schemes come in various shapes and sizes, and includes security estates, sectional title complexes, retirement developments and housing estates. Why are certain developments more suited to security estates or sectional title schemes? A developer may be motivated to develop a...
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...
Short term letting is a controversial topic in sectional title for various reasons, one of which involving the uncertainty as to what is allowed and what is not. Body corporate trustees have been at loggerheads with owners, trying to get decisive rulings via the Community Schemes Ombud Service (CSOS) to solve their disputes. Regrettably, the CSOS adjudications have varied widely in...
Each new year presents its own challenges for a body corporate. Body corporate planning allows unresolved matters from the previous year to be attended to and for all the role players to reset for the year ahead. What pro-active planning can be done? Every year body corporate trustees must ensure that they deal with legislative requirements that make their scheme compliant. The trustees,...
There are very few bodies corporate that function effectively without a managing agent. The responsibilities placed on trustees can be onerous, requiring dedication as well as knowledge of sectional title legislation. To make matters worse, trustees are not paid for their time and often not appreciated. The impact of low fees on service delivery The appointment of a managing agent is contractual of...