Key Points Every Trustee and Owner Should Know
The Sectional Titles Schemes Management Act (STSMA) is a crucial piece of legislation that governs sectional title properties in South Africa. Whether you’re a trustee or an owner, understanding this Act is essential for ensuring the smooth management of your scheme. Here are some key points you need to know:
1. What is the STSMA?
The STSMA was introduced to regulate the management and administration of sectional title schemes. It provides guidelines for trustees, owners, and managing agents to ensure transparency, financial accountability, and effective governance.
2. The Role of Trustees
Trustees are responsible for managing the body corporate and making decisions in the best interests of all owners. Their duties include financial management, maintenance planning, enforcing conduct rules, and ensuring compliance with the Act. Trustees must act in good faith and avoid conflicts of interest.
3. Body Corporate Responsibilities
The body corporate is made up of all unit owners and is responsible for maintaining common property, ensuring financial stability, and implementing the management rules set out in the Act. Regular meetings must be held to discuss budgets, levies, and any major decisions affecting the scheme.
4. Levy Contributions & Financial Management
Owners are required to pay levies, which cover maintenance, insurance, and general operational costs. Trustees must prepare annual budgets, maintain financial records, and ensure that levies are collected and used appropriately.
5. Maintenance and Repairs
The Act outlines who is responsible for maintenance. Generally, individual owners maintain their sections, while the body corporate is responsible for common property. A proper maintenance plan must be in place to prevent disputes and unexpected costs.
6. Meetings and Decision-Making
Annual General Meetings (AGMs) and Special General Meetings (SGMs) provide a platform for owners to vote on important matters. A quorum must be met, and decisions are typically made by majority vote unless special resolutions are required.
7. Dispute Resolution & CSOS
The Community Schemes Ombud Service (CSOS) provides an accessible way to resolve disputes related to conduct rules, financial management, and governance issues within sectional title schemes. Owners and trustees can approach CSOS for mediation and adjudication.
8. Conduct and Management Rules
Each sectional title scheme has its own set of conduct and management rules. These cover aspects such as noise restrictions, pet policies, parking, and renovations. Owners must adhere to these rules to maintain harmony in the scheme.
9. Insurance Requirements
The body corporate is required to insure buildings and common property against risks such as fire, flooding, and structural damage. Owners should also consider additional coverage for their units and contents.
10. Compliance & Legal Obligations
Failure to comply with the STSMA can result in legal consequences. Trustees must ensure that the scheme operates within the legal framework to avoid fines, disputes, and potential financial losses.
Final Thoughts
Understanding the Sectional Titles Schemes Management Act is crucial for the effective operation of a sectional title scheme. Whether you’re a trustee managing the scheme or an owner looking to protect your investment, staying informed about your rights and responsibilities can help create a well-run and harmonious community.
For more information or assistance with your sectional title scheme, contact Hermanus Property Management today.