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New Acts Affect Sectional Titles Schemes

Miller’s Attorneys of George recently published information about new legislation which will affect Trustees and Executive committee members of Housing Development Schemes (Community Schemes). Two new acts and regulations came into operation on 7 October 2016, resulting in important changes to community schemes management.

Community Schemes Ombud Service Act 9 of 2011 (CSOSA)

A community scheme means any scheme or arrangement in terms of which there is shared use of and responsibility for parts of land and buildings, including but not limited to sectional titles development schemes, share block company, a home or property owner’s association, however constituted, established to administer a property owner’s association, a housing scheme for retired persons and a housing co-operative as contemplated in the South African Co-operatives Act, 2005.

The purpose of the CSOS is to provide a legal structure to monitor and control the administration of private and common areas in all community schemes and to deal with disputes that arise in such schemes between owners/occupiers/interested parties and the management body of the schemes.

Many Homeowners association constitutions contain clauses relating to dispute resolutions and it is necessary to bring such constitutions in line with the new dispute procedures in terms the CSOSA.

Sectional Titles Schemes Management Act 8 of 2011 (STSMA)

The STSMA deals with the establishment and function of bodies corporate, powers of bodies corporate, insurance, rules and the like in sectional title schemes. It is important to compare a scheme’s existing rules and the new rules as the existing rules may be in contradiction with the new rules.

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