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Sectional Title Governance

Body Corporate Rules

Body corporate management and conduct rules play an essential part in the effective and smooth operation of a sectional title scheme, so it’s crucial that owners and trustees are aware of the requirements in drawing up and amending these rules.

The process to approval for extending a Sectional Title Unit

Creating body corporate rules

When creating the management and conduct rules for a sectional title scheme, due consideration should be paid to the Sectional Titles Act 95 of 1986, the Sectional Titles Schemes Management Act 8 of 2011 and the Community Schemes Ombud Act 9 of 2011. All rules and regulations should comply with the terms of these Acts.

Further to this, the rules drawn up must provide for Regulation, Management, Administration, and Use and Enjoyment as far as each sectional title is concerned. This may include aspects regarding pets, the creation of an exclusive use area such as a parking bay, or renovations and alterations.

While body corporate rules may vary and can be specific to a particular sectional title scheme, in terms of Section 35 (3) of the Sectional Titles Act, they must be reasonable, fair and apply equally to all owners for the same purpose.

Once formalized, all owners within the sectional title scheme must receive a copy of the body corporate rules to ensure all scheme members are clear on what their rights, responsibilities and duties are.

Amending body corporate rules

There are a number of steps that need to be followed to amend the body corporate rules. These are in general:

  • Draft: The proposed amendment or resolution must be formalized into a written document
  • Consent: The necessary written consent must be obtained from the owners, in the event that the proposed amendment increases levies or limits an owner’s voting power or property rights
  • Notice: Proper and reasonable notice must be given regarding the proposed amendment
  • Meeting: A quorum must be present at the meeting
  • Votes: A unanimous resolution is required for management rules and a special resolution for conduct rules
  • Minutes: The proposed amendment must be recorded permanently for body corporate records
  • Filing: The proposed amendment or rule must then be filed in the appropriate office whereafter it will come into effect.

Importantly, before buying into a sectional title scheme, purchasers should find out their rights and obligations under the applicable legislation as well as under the Prescribed Management Rules and Conduct Rules. Having a clear understanding of these may affect one’s decision about the suitability of the investment.

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Sectional Title Governance

Body Corporate Rules

Body corporate management and conduct rules play an essential part in the effective and smooth operation of a sectional title scheme, so it’s crucial that owners and trustees are aware of the requirements in drawing up and amending these rules.

The process to approval for extending a Sectional Title Unit

Creating body corporate rules

When creating the management and conduct rules for a sectional title scheme, due consideration should be paid to the Sectional Titles Act 95 of 1986, the Sectional Titles Schemes Management Act 8 of 2011 and the Community Schemes Ombud Act 9 of 2011. All rules and regulations should comply with the terms of these Acts.

Further to this, the rules drawn up must provide for Regulation, Management, Administration, and Use and Enjoyment as far as each sectional title is concerned. This may include aspects regarding pets, the creation of an exclusive use area such as a parking bay, or renovations and alterations.

While body corporate rules may vary and can be specific to a particular sectional title scheme, in terms of Section 35 (3) of the Sectional Titles Act, they must be reasonable, fair and apply equally to all owners for the same purpose.

Once formalized, all owners within the sectional title scheme must receive a copy of the body corporate rules to ensure all scheme members are clear on what their rights, responsibilities and duties are.

Amending body corporate rules

There are a number of steps that need to be followed to amend the body corporate rules. These are in general:

  • Draft: The proposed amendment or resolution must be formalized into a written document
  • Consent: The necessary written consent must be obtained from the owners, in the event that the proposed amendment increases levies or limits an owner’s voting power or property rights
  • Notice: Proper and reasonable notice must be given regarding the proposed amendment
  • Meeting: A quorum must be present at the meeting
  • Votes: A unanimous resolution is required for management rules and a special resolution for conduct rules
  • Minutes: The proposed amendment must be recorded permanently for body corporate records
  • Filing: The proposed amendment or rule must then be filed in the appropriate office whereafter it will come into effect.

Importantly, before buying into a sectional title scheme, purchasers should find out their rights and obligations under the applicable legislation as well as under the Prescribed Management Rules and Conduct Rules. Having a clear understanding of these may affect one’s decision about the suitability of the investment.

Follow Snymans on Facebook for more legal information, tips and news about property.