It has been a long time coming, and we have finally been given notice that the Sectional Titles Schemes Management Act No 8 of 2011; and the Community Schemes Ombud Service Act No 9 of 2011 (CSOS) have been signed by the President, and will come into operation on 1 October 2016.
The Acts bring about some quite significant changes to scheme management law, and brings CSOS into operation as an avenue to resolve scheme administration disputes, and control sectional title governance.
From 1 October, certain changes will have to be made straight away regarding specific management provisions for sectional title schemes.
The most notable changes will have the following effects:
- Establishing a reserve fund : it has been suggested that each scheme should set aside 25% of the annual budgeted levy figure to cover the cost of future maintenance and repairs to common property;
- Notification to Ombud of domicile address: the CSOS Ombud, local municipality and local Registrar of Deeds need to be given a domicile for the body corporate, so that there is one address fro services of notices;
- Assisting schemes to recover arrear levies: the CSOS Ombud can be approached to assist in this regard;
- Certification of changes in levy contributions: any levy changes will have to be certified in writing;
- Proxies to be limited: one person will not be able to be proxy for more than 2 members;
- Remedy in the event of not being able to obtain a special or unanimous resolution: the CSOS Ombud will be able to be approached where there is an impasse;
- Assistance where management or conduct rules differ: where rules are substituted/added to/changed, the CSOS Ombud will have to approve and certify the changes;
- Storage and delivery of management and conduct rules: all rules must be made available at any body corporate meetings, and given to new people joining the scheme ,whether as owner or tenant;
- Occupancy changes recorded: body corporates must be notified of any changes of ownership.
The changes should have a positive effect on streamlining scheme management, but as with all new system implementation, there could be some teething problems.
If you need any assistance, please contact the Venns Property Department for advice on firstname.lastname@example.org or (033)3553100
Article by Keran Henwood