Frequently Asked Questions for New Properties
How is a Sectional Title property formed?
A body corporate is established from the date of the first transfer of a unit from the developer to another party.
Date of establishment: with effect from the date on which any person other than the developer becomes an owner of a unit in a scheme, there shall be deemed to be established a body corporate of that scheme.
Members of the body corporate: the body corporate shall consist of the developer and every person who becomes an owner of a unit in a scheme. The developer ceases to be a member of the body corporate once the ownership in every section is held by any person or persons other than the developer
What are sectional plans?
Sectional plans are essentially a “birds-eye view” of the sectional title scheme, including the boundaries of the erf, the common property, sections, registered exclusive use areas, participation quota, servitudes, encroachments and rights of the developer to extend the scheme. You will also be able to see if the scheme has been built in phases, extended, if sections have been destroyed, consolidated or subdivided, and if exclusive use areas have been added or cancelled. The sectional plans will not show you the interior of sections or the location of pipes, wires, cables, ducts etc. These plans are part of the body corporate’s record, and must be provided to all owners and made available at all general meetings of the scheme.
What are the rules governing sectional title properties?
The prescribed management and conduct rules, if not amended by the developer or the members of the body corporate, to be read with the Sectional Titles Schemes Management Act and the Community Schemes Ombud Service Act.
When is the first general meeting held?
In a body corporate, the developer must convene a meeting of the members of the body corporate not more than sixty (60) days after the establishment of the body corporate.
Does the body corporate have a founding document?
Yes, it is issued at the opening of the sectional title register at the deeds office called a certificate of establishment. The developer applies to the Registrar of Deeds the opening of a sectional title register and the registration of the sectional plan in respect of the scheme.
What should a buyer look at before buying into a community scheme?
Conduct rules and Management rules OR Constitution OR Memorandum of Incorporation (MOI), Estate rules and Architectural Guidelines
– Last approved budget,
– Last audited financial statements,
– Minutes of the last AGM,
– Maintenance, repair and replacement plan
– Most recent Insurance policy.
How is ownership in a sectional title scheme divided?
Each owner of a unit owns the common property within a sectional title scheme in undivided shares determined in accordance with the participation quota of each section.
What is the role of the Body Corporate in sectional title properties?
Each owner of a unit within a sectional title scheme is a member of the body corporate, that is represented by a nominated and elected committee of trustees.
What are levies, and why are they important?
Contributions levied are the only statutorily required income of the body corporate, payable by each member according to their participation quota, per the estimated expenditure of the body corporate for the financial year. Without these payments, the scheme will not be able to maintain and repair the common property or pay for services such as electricity, water and security etc.
How are decisions made within a sectional title scheme?
Resolutions (above) are made at trustee or annual / special general meetings or in writing by round robin resolution.
How is an HOA formed?
An HOA can be a Common Law association, with a constitution, as approved by the Local Authority, or a non-profit company (NPC) registered under the Companies Act with the CIPC.