Overview of the Sectional Titles Schemes Management Act and the Community Schemes Ombud Services Act
The Department of Human Settlement has now published Regulations in respect of both the Sectional Titles Scheme Management Act No. 8 of 2011 and the Community Schemes Ombud Services Act No. 9 of 2011.The deadline for public comment on these regulations was the beginning of November.
The Regulations include:
THE SECTIONAL TITLES SCHEMES MANAGEMENT ACT No. 8 OF 2011
- Regulations 1 deals with definitions
- Regulation 2 deals with the minimum amount of the annual contribution by the body corporate to the reserve fund
- Regulation 3 deals with other risks that a body corporate must address. These are:
- Lightning, explosion and smoke;
- Riot, civil communication, strikes, lockouts, labour disturbances or malicious persons acting on behalf of or in connection with any political organisation;
- Storm, windstorm, hail and floods;
- Earthquakes and subsidence;
- Water escape, including bursting or overflowing of water tanks, apparatus or pipes;
- Impact by aircraft and vehicles; and
- Housebreaking or any attempted threat.
- Regulation 4 sets out the powers of a provisional curator appointed in terms of the Community Schemes Ombud Act
- Regulation 5 deals with the forms to be used when:
- The body corporate notifies owners of its service address; and
- The body corporate amends the rules.
- Regulation 6 deals with the standard Management and Conduct Rules
Management Rules
There are basically 31 Management Rules broadly categorized under the following headings:
- Part 1 deals with definitions, amending and binding nature of the rules, service and addresses of the body corporate;
- Part 2 deals with the trustees – elections thereof, qualifications and pay-outs and indemnity of the trustees;
- Part 3 deals with trustee meetings and decisions;
- Part 4 deals with owner meetings;
- Part 5 deals with Financial Management of the schemes;
- Part 6 deals with administrative management of the sectional title schemes; and
- Part 7 deals with the physical management of the schemes.
Conduct Rules
There are 8 conduct rules categorized as under the following headings:
- Rule 1 deals with the keeping of animals, reptiles and birds in the sectional title scheme;
- Rule 2 deals with refuse and waste disposal;
- Rule 3 deals with the parking of vehicles;
- Rule 4 deals with the prohibition of damaging the common property;
- Rule 5 deals with the appearance of sections and exclusive use areas;
- Rule 6 deals with the storage of flammable materials;
- Rule 7 deals with the behaviour of occupiers and visitors in sections and on the common property; and
- Rule 8 deals with the eradication of pests in sections.
- Regulation 7 provides that the Advisory Council must be broadly representative of females, males and, where possible, include people with disabilities
THE COMMUNITY SCHEMES OMBUD SERVICES ACT No. 9 OF 2011
There are 23 Regulations categorized into 5 chapters:
- Chapter 1 deals with definitions
- Chapter 2 deals with the activities of the Community Schemes Ombud Services Board
- Chapter 3 deals with scheme levies and service fees. This is very important as these levies and fees will assist the service to be financially sustainable
- It is proposed that each section owner who owns a unit valued by the Municipality at R500 001 and above must pay R3.40 per month – with the fees increasing on a sliding scale based on the municipal value, with a maximum fee of R68.00 for each unit valued at R250 001.00 and above.
- For dispute resolutions, an application fee of R50.00 is charged for referring a dispute for conciliation and if the matter is not resolved at conciliation and is referred for adjudication, the applicant will be required to pay an amount of R100.00.
- People who earn an amount below R5 500.00 per month will be entitled to a 100% waiver of application and adjudication fees.