Adapting to the Sectional Title way of life may be challenging for those who have lived in freehold homes. For the benefit and convenience of all, in the interests of harmony among residents and to promote and safeguard a specific way of life which Heritage Estate offers, it is essential that rules are in place to govern how the Estate is run.
The community environment at Heritage Estate is designed for the active over 50’s, and is tailor made to ensure that residents experience harmony, peace of mind and the commitment of all role players who have devoted their energies to creating this ambitious project.
The development is for individuals who enjoy a full and varied lifestyle emphasising healthy living. Heritage Estate is not just a place to live, but a way of life and the Conduct Rules represent the interests of the owners and residents of Heritage Estate. The key elements which residents value, support and adhere to, are – a secure tranquil haven, active and healthy life, homes and facilities to be proud of, fellowship, camaraderie and culture, the essence of village life, and synergy with nature.
Community living in gated complexes can be multidimensional with the coming together of many differing cultures and personalities. Consideration of the interests and privacy of neighbours, tolerance of the behavioural patterns of others and full observation of the Rules of the Body Corporate are extremely important in effecting a happy and harmonious co-existence.
Owners share the lifestyle and communal facilities with individuals who may differ in terms of tastes, interests, values and even prejudices. It is thus paramount that all residents cultivate a spirit of tolerance and follow the simple philosophy of ‘consider thy neighbour’ in order for all to enjoy this wonderful lifestyle.
To this extent, the Body Corporate issues a set of Conduct Rules that are determined by the Trustees, that must be adhered to in terms of the Management Rules. These rules are only a guide. It is however required that we extend genuine respect and consideration for each other to ensure enjoyable stay and association in the complex. Based upon this rationale, the rules should be deemed to be neither restrictive nor punitive, but rather as a judicious framework to safeguard and promote appropriate, sensible and fair interaction. In the event of differences or annoyances, the parties involved should attempt as far as possible to settle the matter between themselves, exercising respect, tolerance and consideration. These Conduct Rules shall not be added to, amended or repealed except by Special Resolution of the members of the Body Corporate in accordance with the Sectional Titles Act 95 of 1986.
Parts of the old Sectional Title Act 95 of 1986 are still in force, but two new acts were promulgated on 7 October 2016 – namely the Sectional Title Schemes Management Act (STSMA) and the Community Services Ombuds Service Act (CSOSA).
The STSMA will deal with the operational requirements around the management of Body Corporate schemes, while the CSOSA will assist with any disputes which may arise. The CSOS (the Ombud offices) will also act in a compliance capacity for other communal residential complexes, such as security estates (where a Home Owners Association manages the complex), retirement villages and share block schemes.
Points applicable to the new Sectional Title legislation
1. Registration of the complex
Body Corporates and Home Owners Associations need to register the complex with the Ombud’s offices. They also need to ensure that all complex management and conduct rules, together with any changes which have historically been made to these rules, are filed with the Ombud.
In addition, complexes need to provide their domicilium address to the Ombud, the local municipality and local registrar of deeds so that in the event of cases being brought against a Body Corporate or Home Owners Association, there is one address at which to serve notices.
2. Assistance with conduct rules
The office of the Ombud must approve and certify all Body Corporate rules which have been substituted, added or changed.
3. Annual audited financials
All complexes need to file their audited financials with the Ombud’s offices together with their budget for the following year.
Relating to sectional title units:
4. Reserve Fund
Body Corporates are now required by law to establish a reserve fund to cover the cost of future maintenance and repairs to common property. The suggested amount for the reserve fund is 25% of the annual levy.
5. Additional levy to fund the Ombud’s offices
In order to properly serve the sectional title community, the Ombud’s offices will be funded with an additional levy which each owner will have to pay.
6. Limited proxies
No more multiple proxies per person. This new legislation limits the number of proxies held by a single Body Corporate member, to two.
7. Counting of votes
The way in which votes are counted at meetings has now been amended. Quorums and resolutions are now reached by counting the percentages required by number and value and each owner gets to vote only once in order to reach the required number as opposed to having multiple votes if more units are owned.
8. Insurance
All Body Corporates now need to review their all-risk insurance policy every 3 years. Moreover, sectional title owners may now take out additional insurance for their unit, in addition to the complex all-risk policy.
9. New complexes
In order to register a new sectional title development, a certificate must be obtained from the Ombud’s office in which the Ombud confirms that the new complex is registered with the Ombud and that changes to the standard management and conduct rules are reasonable and acceptable.
This new legislation aims to improve and streamline the governance of your Body Corporate. A positive move forward for trustees, owners and tenants alike.