Home / Sectional Title & Estates  / Sectional schemes: Your deadlines for the next 90 days

Sectional schemes: Your deadlines for the next 90 days

participation quota sectional title resize

Sectional title owners, trustees and managing agents should by now be aware of the new, long-awaited Community Schemes Ombud Service Act (CSOSA), the Sectional Titles Schemes Management Act (STSMA) and their relevant regulations.

Alan Levy, of Alan Levy Attorneys, summarises the requirements for schemes for 90 days after the date when the laws were gazette on 7 October, 2016.

Requirement 1 – Register your community scheme with CSOS as this obligation becomes effective 30 days from publication of the regulations (7 October, 2016). This is detailed in regulation 18(3) of the CSOSA regulations. This applies to all community schemes such as, but not limited to, a sectional title scheme, a share block company, a home or property owner’s association. The required form CS1 is attached to the Regulations.

Requirement 2 – Lodge the community schemes governance documentation with CSOS. The obligation becomes effective 90 days from publication of the regulations (7 October, 2016). This is detailed in Regulation 16 of the CSOSA regulations. This applies to all community schemes such as, but not limited to, a sectional title scheme, a share block company, a home or property owner’s association. There is no prescribed form.

Requirement 3 – File the community scheme’s annual return and annual financial statements within four months of the scheme’s financial year-end with CSOS. The obligation becomes effective 90 days from publication of the regulations (7, October 2016). This is detailed in regulation 18(1) of the CSOSA regulations. This applies to all community schemes, such as, but not limited to, a sectional title scheme, a share block company, a home or property owner’s association. The required form CS2 is attached to the Regulations.

Requirement 4 – Pay CSOS on a quarterly basis the CSOS levy (fee). The obligation becomes effective 90 days from publication of the regulations (7 October, 2016). This is detailed in regulation 11 of the CSOSA regulations and in the CSOS Fee and Levy Collections Regulations. This applies to all community schemes, such as, but not limited to, a sectional title scheme, a share block company, a home or property owner’s association. There is no prescribed form.


Here’s how to work out your CSOS levy


Requirement 5 – Insure against risk of loss against any act of fraud or dishonesty committed by an insurable person. The obligation becomes effective on publication of the regulations (7 October, 2016). This is detailed in regulation 15 of the CSOSA regulations. This applies to all community schemes, such as, but not limited to, a sectional title scheme, a share block company, a home or property owner’s association. There is no prescribed form.

Requirement 6 – Notify CSOS, the local municipality and the local Registrar of Deeds of the community scheme’s domicilium. The obligation becomes effective on publication of the regulations (7 October, 2016). This is detailed in section 3(1)(o) of the STSMA. This applies to sectional title schemes only. The required form A is attached to the Regulations.

Requirement 7 – Establish a reserve fund, open a separate bank account for, submit a separate budget for and submit separate financial statements for, the reserve fund. The obligation becomes effective on publication of the regulations (7 October, 2016). This is detailed in Section 3 (1)(b) of the STSMA, new Prescribed Management Rule 24 and in various others of the new Prescribed Management Rules. This applies to sectional title schemes only. There is no prescribed form.


Your reserve fund could see your levy increase by 15% per year


Requirement 8 – Prepare a written maintenance plan. The obligation becomes effective on publication of the regulations (7 October, 2016). This is detailed in new Prescribed Management Rule 22. This applies to sectional title schemes only. There is no prescribed form.


Contact Alan Levy Attorneys for more

hometimes@pixelbaste.com

Review overview
NO COMMENTS

POST A COMMENT