select
|

How to deal with improvements in sectional title schemes

Regulation 29 in the Sectional Title Schemes Management Act (STSMA) now provides for clear instructions as to how improvements should be handled in sectional title schemes, and trustees should be aware of whether they will need unanimous, special or majority resolutions to carry out certain upgrades in their scheme, says Michael Bauer, general manager of property management company IHFM.
 
If an improvement is deemed to luxurious, in that it is not absolutely necessary, then Regulation 29 (1) stipulates that a unanimous resolution is required. 
 
Regulation 29 (2) makes provision for the body corporate proposing “to make alterations or improvements to the common property that are reasonably necessary; provided that no such proposal may be implemented until all members are given at least 30 days written notice with details of —
(a)  the estimated costs associated with the proposed alterations or ?improvements;
(b)  details of how the body corporate intends to meet the costs, including details ?of any special contributions or loans by the body corporate that will be required for this purpose; and ?
(c)  a motivation for the proposal including drawings of the proposed alterations ?or improvements showing their effect and a motivation of the need for them; ?

(a)  the estimated costs associated with the proposed alterations or improvements;
(b)  details of how the body corporate intends to meet the costs, including details of any special contributions or loans by the body corporate that will be required for this purpose; and 
(c)  a motivation for the proposal including drawings of the proposed alterations or improvements showing their effect and a motivation of the need for them; 
and if during this notice period any member in writing to the body corporate requests a general meeting to discuss the proposal, the proposal must not be implemented unless it is approved, with or without amendment, by a special resolution adopted at a general meeting.”
 
The regulations are very specific with regard to prepaid meters, whether water, gas or electricity, in that it is stipulated that these installations would be deemed necessary improvements, and that if there is majority of owners in favour of the resolution then they can be installed and the costs are borne by the owners, as stated in 29 (3). 
 
“A body corporate must, if so directed by a majority resolution of members —

(a)  install and maintain separate meters to measure the supply of electricity, water, gas or the supply of any other service to each member's sections and exclusive use areas and to the common property; and 
(b)  recover from members the cost of such supplies to sections and exclusive use areas based on the metered supply. 
 
If prepaid meters are proposed on the common property, then a special resolution is required, as state in 29 (4) “A body corporate may on the authority of a special resolution install separate pre-payment meters on the common property to control the supply of water or electricity to a section or exclusive use area; provided that all members and occupiers of sections must be given at least 60 days’ notice of the proposed resolution with details of all costs associated with the installation of the pre-payment system and its estimated effect on the cost of the services over the next three years.”

Much thought has been given to ensuring that all conditions with regards to luxurious or non-luxurious items have been covered, said Bauer, and trustees are able to download the regulations from the IHFM website, under the FAQ section, to assist them in getting to know these new management rules.
 


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 19 Feb 2018
      Possibly one of the biggest sources of contention between landlords and tenants surrounds the rental deposit. “Most tenants rely on getting their rental deposits back when moving, so that they can use it to pay a deposit on their new home. Having it withheld or even having large amounts deducted can lead to a lot of distress,” explains Bruce Swain, CEO of Leapfrog Property Group.
    • 19 Feb 2018
      Situated approximately halfway between Johannesburg and Pretoria, Midrand was established in 1981 and forms part of the City of Johannesburg Metropolitan Municipality. It has become one of the major business hubs in the country with major pharmaceutical, textile, telecommunication and motoring giants situated within its boundaries.
    • 19 Feb 2018
      The PayProp Rental Index Annual Review of 2017 shows that the rental market suffered from much volatility during the year. It kicked off with rental growth spiking in January with weighted year-on-year growth (YoY) growth peaking at 8.3% before dropping to 6.34% in July, dipping down to less than 5% in November and then experiencing a slight uptick at 5.75% in December.
    • 19 Feb 2018
      While most homes in cluster complexes, estates and other gated communities come with at least one garage or carport, residents would often like additional permanent parking or storage areas for things like trailers, bikes, boats and caravans.
    • 16 Feb 2018
      Whether you own a property in a sectional title complex or are looking to invest in one, the financial standing of the body corporate is the single most important thing that can affect your investment or your buying decision.
    • 15 Feb 2018
      One positive consequence of the financial crash in 2008 was the rise in consumerism, especially in the property market, where buyers have steadily become more knowledgeable and more value conscious.
    • 15 Feb 2018
      While most homeowners will take the agent’s commission into consideration when they are trying to determine what the will get out from the sale of their property, many often forget to factor in the other costs involved in a home sale, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
    • 14 Feb 2018
      The forecast for the national rental market in 2018 remains a mixed bag of good news and bad news. Although rentals are expected to rise slowly as the challenges of home affordability and tighter lending criteria tighten their grip, it’s a double-edged sword as the market also will come under increasing pressure from factors like declining disposable income levels.
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK