Sectional title corner – Do the new regulations apply to small schemes?
My neighbour and I have a duet sectional title scheme. The body corporate (just the two of us) do not have meetings and we have our individual accounts for rates and taxes as well as electricity. We do and pay for maintenance ourselves to our individual units. We have not since the inception of the scheme had yearly meetings or a balance sheet.
With the new Sectional Title Scheme Management Act (STSMA) legislation concerning the registration of a maintenance fund, do we have to comply or can we just carry on as before. If this is compulsory for us, can we deregister the sectional title and convert to full title? – Hannes
Hi Hannes, the STSMA does not state any penalties for non-compliance. But, should someone be in disagreement with the way you run your scheme (because unfortunately it still is a sectional title scheme), they can take you to the Ombud.
With regards to deregistering as a sectional title scheme and making it full title – that will depend on your council bylaws. Are separate portions of the scheme big enough to be registered as separate stands?
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Who is Karien Coetzee?
Karien Coetzee is the national property management consultant at property management company, Trafalgar. She holds qualifications in sectional title schemes management and homeowners association management.