Sectional Title Ownership - a list of frequently asked questions
Category Forms of Ownership
Sectional Title Ownership - a list of frequently asked questions What is "Sectional Title"? A Sectional Title Development Scheme (usually referred to as a "SCHEME") provides for separate ownership of a property by individuals. These schemes fall under the control of the Sectional Titles Act (No. 95 of 1986) (and its amendments), which came into force on 1 June 1988. Our Managing Agent says that it is legal for him to be a Trustee. This seems strange. Is he correct? An amendment to Regulation 5 of the Sectional Titles Act now allows a Managing Agent or an employee of the Managing Agent to be a trustee, as long as he is an owner of a unit in the building. This amendment is open to criticism as there may be a conflict of interest where a Managing Agent or his employee are wearing two hats. The Trustees have just gone ahead and decided that the building is being painted. A special levy has been raised. I cannot afford it. Can they make that decision alone? The trustees have delegated powers in terms of the Sectional Titles Act, and have the power to decide on issues relating to the maintenance of the building. In fact this is a statutory obligation, and if they fail to ensure that the building is maintained, they may face an arbitration hearing. Obviously the decision which they take must be reasonable, that is, they should have obtained quotes in an acceptable manner, etc. They are entitled to raise a special levy. We are rather confused on the issue of cheques. Can a Managing Agent sign our cheques on our behalf? It is important to note that cheques must either be signed by two trustees, or by the Managing Agent and one trustee. It would be irresponsible of the trustees to allow a Managing Agent to have the sole power to sign cheques. I believe that a meeting must be called at our Body Corporate urgently to discuss certain issues, but only Trustees can call meetings. They refuse to do so. What can I do? If you have the support of other owners who make up 25% of the total of the participation quotas of the sections, you may, in writing, request that the trustees convene a special meeting. If the trustees fail to call a meeting within fourteen days, those owners may then themselves call the meeting. We have a major problem with tenants in our complex. Many tenants simply do as they please with absolutely no regard to the rules of the complex. Can we evict them? The answer is 'no'. There is no legal relationship between tenants and the Body Corporate. The owner is directly responsible to ensure that his lessee complies with the rules, and the Body Corporate has recourse against the owner. In other words, if the matter went to arbitration, the owner would be the Respondent in the matter. The Body Corporate should place pressure on the owner at all times to in turn reprimand a tenant who is not adhering to the provisions of the Sectional Titles Act... and to force him to comply. How do we define 'harmonious appearance'? Some people try to equate harmony with aesthetics and often go to great trouble and expense to prove their point. This is, however, not what is intended by the rule. Says Gauld: "If we look at a scheme of ten sections built in a single row, nine of which have bright red and purple front doors, while one section has a white door - the white door would be considered inharmonious, even though aesthetically it may be more pleasing." And the harmonious appearance rule is absolute. It does not even allow the owners by unanimous resolution to sanction anything inharmonious. Common violations of this rule are gates, awnings and shade-cloth that do not conform to patterns or colours approved by the Body Corporate. Other examples are windows that have been replaced with sliding doors or steel garage doors that have been replaced by timber doors. .................... Henry Spencer - excerpts from his book 'There is Life After 65!" (Answers by Sectional Title expert Bob Gauld)
Author: Henry Spencer