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Sectional title corner – Do the new regulations apply to small schemes?

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Q

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

A

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? Trafalgar logo fc_pay off line


Got a burning question? Email david@hometimes.co.za and we’ll be sure to assist you. 


Who is Karien Coetzee?

Karien Coetzee, national property management consultant at Trafalgar.

Karien Coetzee, national property management consultant at Trafalgar.

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.

david.steynberg@gmail.com

David A Steynberg, managing editor and director of HomeTimes, has more than 10 years of experience as both a journalist and editor, having headed up Business Day’s HomeFront supplement, SAPOA’s range of four printed titles, digimags Asset in Africa and the South African Planning Institute’s official title, Planning Africa, as well as B2B titles, Building Africa and Water, Sewage & Effluent magazines. He began his career at Farmer’s Weekly magazine before moving on to People Magazine where he was awarded two Excellence Awards for Best Real Life feature as well as Writer of the Year runner-up. He is also a past fellow of the International Women’s Media Foundation.

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