Page 24 - Robin Twaddle PTG 2017 Digital

SECTIONAL TITLE AND COMMUNITY SCHEMES

On the 7th October 2016, two new pieces of legislation were signed into law, which affect
Sectional Title and Community Schemes, and which complement the existing Sectional
Titles Act (no 95 of 1986).

They are the Sectional Titles Schemes Management Act (no 8 of 2011) or “STSMA”
and The Community Schemes Ombud Service Act (no 9 of 2011), or “CSOSA”, and
regulations.

The legislation aims primarily to protect owners in sectional title and community schemes
and provides for new management procedures and dispute resolution processes through
the Ombud Service. New Rules have been prescribed, and any contravention thereof may
have serious consequences.

The STSMA applies to Sectional Title Schemes and provides for the establishment of bodies
corporate to manage and regulate sections and common property, and to apply rules
applicable to the scheme.

The CSOSA applies to community schemes, which include Sectional Titles, as well as
other community schemes, such as homeowner’s associations. The CSOSA provides
for dispute resolution mechanisms for these schemes and associations. It provides
for owner protection by setting out the duties of scheme executives (which include
Trustees of Sectional Title Schemes, the Board of Directors of a Share Block Company,
the Management Association of any housing scheme for retired persons). The CSOSA
also provides for the enforcement of good governance, which includes the requirement
for lodgement by all community schemes of scheme governance documentation with
the CSOSA.

Attorneys, Estate Agents, Trustees of Sectional Title Schemes, Directors of Share
Block Companies, Members of the Management Associations of housing schemes for
retired persons, Owners, Developers and Managing Agents are required to know the
critical aspects of the CSOSA. Trustees, Owners, Developers and Managing agents of
Sectional Title Schemes are required to have knowledge and apply the provisions of the
new STSMA.

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